On 11 December 2019, Algeria's President signed into law the Finance Act for 2020, including measures to promote productive investment. As previously reported, this includes:
- the introduction of tax incentives for start-ups operating in the field of innovation and new technologies, including profit tax and value added tax exemptions during the launch and development phase;
- the creation of four types of national economic zones which will serve as start-up incubators and provide financial and tax incentives for other areas of investment; and
- the repeal of the 51%/49% rule for foreign investment in Algeria, particularly for non-strategic sectors.
In addition to the investment measures, the Act also provides for the extension of the scope of VAT to online sales of digital goods and certain electronically supplied services in Algeria. The VAT rate for such supplies is the 9% reduced rate.
Further details on the Finance Act will be published once available.