Algeria Income Tax Rates 2026: Personal Income Tax, Corporate Tax and VAT
An updated guide to Algeria's individual income tax (IRG), corporate income tax (IBS), value added tax (VAT), deductions and special tax regimes, with references to the Algerian tax administration.
Individual income tax (IRG) in Algeria
Impôt sur le Revenu Global (IRG) is the personal income tax on taxable income of individuals. Article 104 of the Code des Impôts Directs et Taxes Assimilées (CIDTA) provides the progressive scale. The published annual taxable-income bands are:
| Annual taxable income (DZD) | Marginal IRG rate |
|---|---|
| Up to 240,000 | 0% |
| 240,001 to 480,000 | 23% |
| 480,001 to 960,000 | 27% |
| 960,001 to 1,920,000 | 30% |
| 1,920,001 to 3,840,000 | 33% |
| Above 3,840,000 | 35% |
These are marginal rates: the rate for a band applies to the income falling within that band, rather than automatically to the entire taxable income. Salary withholding has additional relief rules.
Salary income, pensions and withholding
Articles 69-73 of the CIDTA address the taxable base for employment remuneration, including wages and certain benefits in kind. Qualifying pension and employee social-security contributions are deducted in calculating taxable salary, subject to the statutory rules.
- Monthly employment income up to DZD 30,000 is fully exempt from salary IRG.
- Employment income from DZD 30,001 to DZD 35,000 receives the specified additional relief after the ordinary 40% tax reduction.
- For higher monthly employment income, the 40% reduction of calculated IRG is subject to a minimum of DZD 1,000 and maximum of DZD 1,500 per month.
- Separate additional relief rules apply to qualifying employees with disabilities and pensioners, including the DZD 30,001-42,500 range.
- Certain non-monthly bonuses and allowances are subject to 10% withholding; occasional intellectual activities may be subject to specific 10% or 15% withholding regimes.
See the Directorate General of Taxes (DGI) guidance on salary IRG for Article 104 calculations and the applicable formulas.
Residents, non-residents and self-employed persons
Residence, source of income and the type of payment determine whether progressive IRG, withholding tax or a special regime applies. The general salary scale must not be assumed to apply identically to all non-resident income. Tax treaties may affect the final treatment.
Self-employed persons and professionals may fall within the ordinary IRG rules, the simplified non-commercial-professions regime (BNC) or the Impôt Forfaitaire Unique (IFU), depending on activity, turnover, eligibility and elections. Article 31 bis and Article 282 ter of the CIDTA are relevant to the BNC and IFU choices. The Algerian Investment Promotion Agency's tax system guide explains these regimes.
Tax deductions and allowable expenses
Allowable deductions depend on the income category and supporting evidence. Employee social-security contributions and qualifying pension deductions are recognized in the employment-income computation. For business income, ordinary necessary expenses such as qualifying salaries, rent, depreciation and other properly documented costs may be deductible under the applicable tax regime.
Fines, non-business personal expenditure and expenses without a sufficient business connection should not automatically be treated as deductible. Earlier statements about blanket spousal allowances, alimony, insurance premiums or student-rental exemptions should not be relied upon without checking the current statutory eligibility requirements.
Corporate income tax (IBS) in Algeria
Impôt sur les Bénéfices des Sociétés (IBS) is the corporate profits tax. Article 150 of the CIDTA specifies the principal activity-based rates:
| Business activity | IBS rate |
|---|---|
| Production of goods | 19% |
| Building, public works, hydraulics, tourism and thermal activities (excluding travel agencies) | 23% |
| Other activities | 26% |
Where a company undertakes different activities, the profits are allocated according to the relevant share of turnover, as provided in the DGI guidance. Article 142 bis provides a conditional 10% rate for qualifying reinvested profits, including prescribed investment and retention requirements. Article 138 addresses permanent exemptions for eligible activities.
Official reference: DGI - Corporate income tax (IBS).
Value added tax (VAT / TVA)
Algerian Taxe sur la Valeur Ajoutée (TVA) generally applies to taxable supplies of goods and services and certain imports. The principal rates published by the DGI are:
| VAT category | Rate |
|---|---|
| Standard taxable transactions | 19% |
| Transactions qualifying for the reduced rate | 9% |
Articles 2 and 3 of the turnover-tax legislation distinguish mandatory and optional VAT liability. Exemptions and export treatment must be checked against the specific transaction and current rules; the reduced rate is not available merely because a product belongs to a broad industry. See DGI - Value added tax.
Capital gains, real estate, donations and wealth-related taxes
Capital gains: Gains on business assets and gains on private real estate may be subject to different tax provisions, bases, exemptions and final withholding rates. The historical page's general claim that every capital gain is taxed at corporate rates, with fixed 35% or 70% holding-period relief, should not be applied without verifying the transaction-specific current law.
Property and land: Property-related charges depend on the asset, ownership, locality and type of transaction. A single universal 3%-10% property-tax band is not an adequate description of all current liabilities.
Gifts and donations: Registration duties may vary by the relationship between the parties, type of transfer and available exemptions. The former flat 3% statement is not a general current rate.
Wealth-related taxation: Taxability, valuation, thresholds and rates require review under the legislation in force for the relevant year. Do not rely on the historical 0%-1.5% range without confirming the current provisions.
How the 2017-18 rates differ from today's rules
For historical reference only, the former page reported 2017-18 personal IRG bands of 0% up to DZD 120,000, 20% from DZD 120,001-360,000, 30% from DZD 360,001-1,440,000 and 35% above DZD 1,440,000. These are not the current bands. The old page also listed IBS rates of 19%, 23% and 26% and VAT rates of 19% and 9%, which continue to appear in current official guidance, subject to applicable qualifications.
Official tax sources and further reading
- DGI: Personal income tax on salaries (IRG)
- DGI: Corporate income tax (IBS)
- DGI: Value added tax (TVA)
- Algerian Investment Promotion Agency: Tax system
This article is general tax information, not individualized tax advice. Check the consolidated legislation, finance laws, treaty provisions and current DGI instructions before filing or structuring a transaction.