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October 13, 2024 | 11 months ago
Finance Bill 2025: new activities excluded from the single flat-rate tax
The authorities are gradually moving towards a revision of the single flat-rate tax (IFU), which applies to taxpayers with annual sales of up to 8 million dinars.
To this end, after excluding from the IFU, last year, certain activities, such as those of notaries and lawyers, the government proposed in the draft finance law for the year 2025 to do the same with d 'others.
This concerns, according to article 22 of this text of which we hold a copy, the activities of the retail sale of alcoholic beverages, companies collecting, processing, and distributing tobacco leaves, caterers, village halls, large-scale retail businesses, vehicle rental, machine and equipment rental, tourism and travel agencies, advertising and communications agencies, diversified training and education and general agents and insurance agents.
Activities which will therefore move to the real « » diet.
In the same sense, article 29 of this same bill stipulates that from now on the minimum annual amount of the IFU is 30,000 dinars, instead of 10,000 dinars applied until then.
In the explanatory memorandum, it is recalled that « the employee who receives a monthly income estimated at 45,000 DZD pays a sum representing the overall income tax (IRG) estimated at 4,450 DZD (i.e. 53,400 DZD per year) ».
Flush out under-reports
It is in this sense that the legislator proposed in Article 87 to review the procedure relating to the recovery of this tax (IFU) by giving more room for manoeuvre for tax administration agents about the establishment of the turnover of the taxpayers concerned.
The government recalled that « according to the latest statistics (12/31/2023), the number of taxpayers subject to this tax is 1,889,595, which represents 82% of the total tax population ».
However, « in terms of profitability, the single flat-rate tax is much lower than the other taxes that make up our system, such as the overall income tax or the corporate income tax ».
« The revenue generated by the single flat-rate tax represents 1% of the total ordinary tax revenue which is 32,206,366,320 DZD », which is indicated in this document.
This situation is explained, in this explanatory memorandum, by the fact that there is an « under declaration » which allows taxpayers to stay below the threshold of 8 million dinars of annual turnover to remain subject to the IFU.
« To remedy this situation, it is proposed to establish a contractual procedure, by which the amount of turnover subject to flat-rate tax is determined by the tax administration within the framework of a contradictory dialogue, considering takes into account the elements making it possible to assess the level of activity carried out by the taxpayers concerned», specifies this bill.
Thus, « thanks to this proposed new procedure, the taxpayers concerned will receive, by registered letter with acknowledgement of receipt, a notification (assessment notice) specifying for each year the turnover proposed by the tax administration which may vary from 'one year to the next », we add again.
New measures, the executive finally indicates, which must be implemented from January 1, 2026.
October 14, 2024 | 
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