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January 13, 2024 | 1 year ago

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2024 Tax Measures: Tax exemptions and reduced rates

In a press release carried by APS news agency on Thursday, the Directorate General of Taxation (DGI) outlined the main tax provisions of the Finance Act 2024. These include new measures designed to meet a socio-economic objective and focusing on seven main areas, namely supporting investment and the national economy, preserving citizens' purchasing power and mobilising tax resources.

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On the question of purchasing power, there was mention of the temporary exemption from value added tax (VAT) for certain widely consumed products, applicable until 31 December 2024 and which concerns the import and sale of dried vegetables and rice, fresh fruit and vegetables, eggs, locally produced broiler chicken and turkey, ordinary and fine flour and semolina.


The period of customs and tax exemptions granted to importers/processors of crude soya oil has been extended to 31 December 2024. The tariffs for stamp duty on 48-page passports for resident and non-resident Algerians have also been revised downwards.


To promote access to the Internet, it has been decided to extend the VAT exemption granted to operations relating to the supply of fixed Internet services until 31 December 2026, covering bandwidth rental services, web server hosting, the design and development of websites, as well as maintenance and assistance.


In terms of investment support, the Directorate General of Taxes has, among other things, abolished the business activity tax (TAP), revised the rate of the single flat-rate tax (IFU) applicable to self-employed entrepreneurs from 5% to 0.5%, exempted the collection and sale of raw milk from the IFU turnover tax, and extended the reduced VAT rate of 9% to the sale of a new list of recycled waste products.


The government has also introduced new tax incentives to encourage the development of the financial and stock markets. These include exemptions from IBS or IRG on income from shares and similar securities listed on the stock exchange. Exemptions from IRG are also granted to savers to encourage savings for public housing programmes.


In order to develop the Takaful insurance business, the Finance Act-2024 has excluded income from the use of financial instruments received by the insurance company from the basis of assessment for IBS, the DGI said.


In 2024, a reduced VAT rate of 9% will be applied to inputs for aquaculture farming, and an exemption from energy efficiency tax will be introduced for exports of certain locally manufactured energy products.

January 14, 2024 | algeria-logo

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