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5.6. Qualification of Specific Income Categories for Tax Purposes

Dividend Income

Dividend includes distributions by companies that are incorporated and registered in Algeria. The term ‘distribution’ includes –

  • Profit or income neither transferred to a reserve nor capitalized;
  • Sum or securities made available to the partners, shareholders, and unitholders, to the extent not deductible from profits;
  • Income from investment funds;
  • Loans, advances or down payments to the partners directly or through intermediaries;
  • Hidden distributions and remuneration benefits;
  • Profits and reserves of legal entities which were earlier subject to corporate income tax, even though they are no more subject to the corporate income tax at the time of distribution;
  • Profits transferred to a foreign company by its branch established in Algeria or any other professional installation in the fiscal sense;
  • Profits and reserves deemed to be distributed to the partners in proportion to their rights when a corporation subject to corporate income tax, ceases to be subject to it.

Interest Income

Interest income includes interest, arrears, and other revenues from bank deposits, current or savings account, mortgages, unsecured loans from government bonds and securities, pre-discounted investment, foreign currency deposits, etc.


Royalty includes the following:

  • amount paid as copyright to writers or composers and their heirs or legatees;
  • amount paid to inventors under the terms of either the licensing of their patents, or the assignment or grant of trademarks, processes or manufacturing formulae;
  • amount paid in respect of industrial or commercial property or similar rights including equipment rentals or remuneration of services entering in the scope of industrial and commercial benefits.

Capital Gains

Capital gains include gains derived by non-residents on disposal of shares or similar securities, realizations of non-resident venture capital companies and other business assets, including gains from the sale of non-commercial, or undeveloped properties.