Algerian taxation is often perceived as complex, especially for new entrepreneurs and SMEs. However, understanding the main taxes that apply to your activity is essential to avoid penalties and legally optimise your tax burden. Here is a practical and up-to-date guide for 2026.
1. Corporate Income Tax (IBS)
The IBS is the equivalent of corporate tax. It applies to legal entities (SARL, SPA, EURL, SNC…) on their net profits generated in Algeria.
| Type of activity | IBS rate 2026 |
|---|---|
| Goods production activities | 19% |
| Building, public works and hydraulics | 19% |
| Tourist and thermal activities | 19% |
| Services and other activities | 23% |
The IBS declaration is filed annually, before 30 April of the year following the fiscal year. Payment can be split into advance instalments.
2. Global Income Tax (IRG)
The IRG applies to natural persons conducting a commercial, craft or liberal activity, or partners in general partnerships. It is progressive and applies to net annual income.
| Annual income bracket | IRG rate |
|---|---|
| Up to 120,000 DA | 0% |
| 120,001 DA to 360,000 DA | 20% |
| 360,001 DA to 1,440,000 DA | 30% |
| Above 1,440,000 DA | 35% |
Taxation regimes
- Real regime: for businesses whose turnover exceeds the flat-rate thresholds. Full accounting required.
- Flat-rate regime: for small activities. Tax is calculated on a flat-rate basis negotiated with the tax office.
- Self-employed: simplified scheme set up to encourage the formalisation of micro-activities.
3. Professional Activity Tax (TAP)
The TAP is a local tax collected for local authorities. It is calculated on turnover excluding tax generated in Algeria.
| Activity | TAP rate |
|---|---|
| Production activities | 1% |
| Wholesale trade | 1% |
| Service activities | 2% |
| Construction (BTP) | 2% |
TAP is declared and paid monthly or quarterly depending on the tax regime, via the monthly or quarterly G50 declaration.
4. Value Added Tax (VAT)
VAT applies to supplies of goods and services in Algeria by taxable persons. Two rates coexist:
- Reduced rate of 9%: applicable to certain basic foodstuffs, medicines, books and agricultural equipment.
- Standard rate of 19%: applicable to all other taxable transactions.
⚠️ Important: If your annual turnover exceeds 30 million DA, you are compulsorily subject to VAT. Below this threshold, you may opt for the flat-rate exemption or be subject to the IFU regime.
5. Unique Flat-Rate Tax (IFU)
The IFU is a simplified regime that combines several taxes into a single payment. It is intended for small businesses whose annual turnover does not exceed 15 million DA.
- IFU rate: 5% of turnover for commercial activities
- IFU rate: 12% for service activities
- Single annual declaration (G12 form)
- Payment in two instalments (June and November)
6. Key Tax Calendar to Remember
| Obligation | Deadline | Form |
|---|---|---|
| Monthly VAT/TAP declaration | 20th of the following month | G50 |
| Quarterly declaration | 20th of the month after the quarter | G50 |
| Annual IBS / IRG declaration | 30 April | G4 / G1 |
| Annual IFU declaration | 30 June | G12 |
| Existence declaration (new business) | 30 days after incorporation | — |
7. Taxation and Digital Transformation: What's Changing
Since 2023, the DGI (General Directorate of Taxes) has been accelerating its digital transformation. Businesses are increasingly encouraged — or even required — to file their declarations online via the jibayatic.dz platform.
Companies falling under the DGE (Large Enterprise Directorate) and certain SMEs are obliged to file electronically. The benefits are real: time savings, traceability and reduced error risk.
Furthermore, electronic invoicing is being progressively rolled out in Algeria as part of the fight against the informal economy. Anticipating this transition by equipping your business with a compliant ERP or invoicing software is a strategic investment.