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January 4, 2025 | 9 months ago
The DGI recalls the main tax provisions of the Finance Act 2025
In a press release issued on Thursday, the General Directorate of Taxes (DGI) recalled the main tax provisions contained in the Finance Act for the year 2025 (LF 2025), aimed primarily at boosting purchasing power and encouraging economic investment.
These provisions focus on five main areas: protecting citizens' purchasing power, supporting investment and protecting the national economy, strengthening tax compliance and fairness as well as financial inclusion, simplifying and harmonizing tax procedures, and mobilizing tax resources, explains the DGI in a press release published on its website.
To protect purchasing power, the 2025 Finance Act provides a temporary VAT exemption until December 31, and the application of a reduced 5% customs duty rate on imports of frozen white meat.
The Finance Act, which has been in force since the start of the current year, also extended VAT exemption to imports and sales of dried vegetables and rice, fresh fruit and vegetables, eggs, broiler chickens and turkey "produced locally".
In addition, it is planned to extend the deadline granted to importers/processors of crude soybean oil to begin the production process for this raw material, exempt coffee exports from VAT and domestic consumption tax, and apply a reduced customs duty rate, until December 31, 2025.
To support investment and protect the national economy, the law provides for a deduction from taxable profits for expenses incurred in in-house research and development activities, and those incurred as part of open innovation programs involving start-ups or business incubators.
It also includes tax benefits for start-ups, innovative projects and business incubators to encourage them, notably through exemption from transfer duties on real estate acquisitions linked to the creation of industrial activities, exemption from registration duties on deeds relating to the creation of companies by holders of the "innovative project" label, and a two-year extension of the IRG and IBS exemptions granted to incubators subject to renewal of their label.
To stimulate economic activity in the wilayas of the far south, the Finance Act extends for five years the 50% reduction in IRG and IBS tax applicable to income generated by activities carried out by individuals and companies who are tax-domiciled and permanently established in the wilayas concerned.
To boost tourism, the law extends the reduced VAT rate of 9% on services related to tourism, hotels, spas, classified tourist restaurants, travel and tourist transport vehicle rentals, until December 31, 2027.
The law also includes measures to support the audiovisual and print media sectors, including the introduction of a tax on the issuance of authorizations and visas for the film industry, earmarked for the "Fonds national de développement de la technique et de l'industrie cinématographique (National Fund for the Development of Film Technology and the Film Industry)”, and the introduction of three taxes to support the "Fonds d'aides à la presse écrite, audiovisuelle, électronique et les actions de formation des journalistes et des professionnels de la presse (Fund to Spport the Written, Audiovisual and Electronic Press and Training Initiatives for Journalists and Press Professionals)”.
Concerning strengthening tax compliance and fairness, as well as supporting financial inclusion, several measures have been taken, including the reorganization of taxation procedures under the IFU regime, the re-framing of the right of communication exercised by the administration, the setting of the settlement date for subscribing the declaration of existence, the strengthening of legal guarantees for audited taxpayers, the promotion of the use of electronic means of payment, and the granting of tax incentives in favour of sovereign sukuk.
Regarding the simplification and harmonization of tax procedures, the Finance Act 2025 exceptionally provides for the extension of the deadline for filing wealth tax returns for 2025 until June 30, as well as other measures such as modifying the deadline for filing annual income tax returns and simplifying the formalities for registering deeds.
Lastly, regarding the mobilization of tax resources, the law provides for measures to reorganize the taxation of tobacco-related activities, to reorganize the taxation of precious stones and metals, to increase the rate of property tax applied to unoccupied secondary properties, and to revise upwards the rate of the motor vehicle tax sticker for vehicles with a horsepower of 10 or more.
January 5, 2025 | 
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