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Algeria's Finance Law for 2019 was published in Official Gazette No. 79 of 30 December 2018. The key measures introduced by the Finance Law are summarized below:

  • Gains derived from the reevaluation of non-amortizable fixed assets will not be included in taxable profit, subject to specific conditions;
  • The current exemption granted on dividends, capital gains, and revenue in connection with specific listed securities is extended to the end of 2023;
  • The list of remuneration paid to third parties falling under the obligation to report the identity of beneficiaries to the tax authorities is extended, including fees paid for outsourcing services, studies, equipment rental, and labor provisions;
  • The deduction of expenses incurred in connection with technical, financial, and accounting assistance provided by a non-resident entity is limited to:
    • 20% of overhead and 5% of turnover of the paying company; and
    • 7% of turnover for engineering advisory firms;
  • Interest incurred in connection with loans granted by shareholders is deductible subject to the following conditions:
    • The interest rate should not exceed the average rate set by the central bank;
    • The share capital must be fully paid up; and
    • The shareholder loans cannot exceed 50% of the share capital value;
  • Interest incurred in connection with loans granted by related entities is deductible as long as the interest rate does not exceed the average rate set by the central bank; and
  • In the case of interest-free and low-rate loans granted to related parties, taxable profit will be increased by deemed interest income calculated at the average rate set by the central bank.

The measures of the Finance Law for 2019 generally apply from 1 January 2019.