The People's Democratic Republic of Algeria, located in north-west Africa, is the largest country in Africa, with a land area of 2.38 million square kilometres. Algeria's economy is one of the largest in Africa, and the oil and gas industry is the mainstay of the Algerian national economy. The official language is Arabic and Tamazight (Art. 3 and 4 of the constitution) , Arabic is the language that is widely spoken. Islam is the state religion, the capital is Algiers, and the currency is the Algerian dinar.

Algeria has a territorial system of taxation and has set up provincial tax bureaux in the provinces and districts to manage tax collection. The General Directorate of Taxes, which is subordinate to the Ministry of Finance, is responsible for the administration of national taxes, the drafting of national tax laws, decrees and collection and management systems, the organisation of national revenues, and the use of tax levers for macroeconomic control of the economy. The Directorate-General of Taxes is composed of a department for tax regulations, a department for tax collection and administration, a department for tax disputes, a department for the organisation of information, a department for the management of resources and a department for auditing and research. In addition, the Directorate-General of Taxes has set up local tax bureaux in nine wilayas (provinces), namely, Alger, Blida, Oran, Sétif, Chlef, Annaba, Constantine, Ouargla and Béchar, which are responsible for tax collection in all 58 wilayas of the country (low no 19-12 of 11 December 2019).

The current tax system in Algeria is based on income tax as the main tax, supplemented by other taxes. The main taxes include:

Corporate income tax, Additional corporate income tax (Art. 9 LFC 2021), individual income tax, value-added tax, domestic consumption tax, customs duty, tax on petroleum products, property tax, inheritance tax, registration tax and stamp duty. Collection methods include withholding at source, which is mainly applicable to salaries and interest income, and fact-finding, which is mainly applicable to all other types of income.

The main functions of the General Directorate of Taxation are to formulate tax laws and regulations, to specify tax types and rates, to participate in tax-related studies, to negotiate international tax treaties and agreements, to conclude multilateral and bilateral tax agreements, to coordinate international and domestic tax systems, to formulate budgets for tax revenues, to define or simplify tax procedures related to tax administration, collection or litigation, to develop and deploy information systems, to set up interfaces and communication tools, dealing with tax disputes, combating tax fraud and tax evasion, ensuring the effective implementation of all tax activities, improving relations between the tax authorities and taxpayers, preparing tax reports and analysing the tax situation.

The provincial tax authorities, established in the provinces and districts, manage the tax administration, ensure the hierarchical authority of the tax centres and local tax centres, ensure compliance with regulations and tax legislation, monitor and control the actions of the services and the attainment of objectives, guide and assist taxpayers in the payment of their taxes, mediate in tax disputes, and facilitate the fulfilment of the tax obligations of the taxpayers.

In addition to this, Algeria has established regional tax administrations in the regions, which ensure the representation of the General Directorate of Taxes at the regional level, ensure the implementation of programmes and the fulfilment of the directives and decisions of the central administration, lead, direct, coordinate, evaluate and control the activities of the tax services of the wilayas within their jurisdiction, ensure compliance with the means, methods, criteria and procedures for the interventions of the tax services of the region, regularly draw up reports and summaries of the activities of the tax services of the region, and propose recommendations for the adjustment of the tax services. Activity reports and summaries, and make proposals on the adjustment of tax legislation. The regional tax authority is made up of four subdirectorates: the training subdirectorate, the organization and resources subdirectorate, the tax operations and collection subdirectorate, and the tax control and litigation subdirectorate.

The Government of Algeria has also set up a Tax Supervisory Authority, which is independent of the Directorate-General of Taxes, to oversee tax collection throughout the country.

The Algerian National Directorate of Taxes is implementing a modernisation reform that focuses on the digitalisation of taxes through the Moussahama'tic portal project, which aims to simplify administrative procedures by allowing online filing of tax returns and online payment of taxes. Taxpayers are required to apply for membership of the portal by contacting the local tax office to which they belong. After registering for membership, taxpayers can file tax returns and pay taxes online through the Moussahama'ttic.

The ‘Moussahama'tic’ system operates in conjunction with the ‘Jibaya'tic’ system that was launched by the DGT in November 2020 at various tax centres and is currently available to the Wilayas d'Oran、Chlef、Tipaza、Alger、Boumerdes、Tizi-Ouzou、M'sila、Mila、Ouargla、Illizi、Tamanrasset、Adrar、Tindouf、Bechar, and will be progressively deployed in other provinces.

To join the ‘Jibaya'tic’ system, taxpayers must first make an appointment on the website of the Ministry of Finance (https://www.mfdgi.gov.dz/index.php), and then submit an application to the Direction des Grandes Entreprises (Direction des Grandes Entreprises), which is under the jurisdiction of the General Directorate of Taxes. Direction des Grandes Entreprises (DGE) under the jurisdiction of the General Directorate of Taxes. Once the documents are submitted and the taxpayer receives the access code to his/her account, the taxpayer can file his/her tax return online at https://www.mfdgi.gov.dz/services-pro-ar/declaration-et-paiement-en-ligne-ar

Currently, The Algerian Ministry of Finance has developed the Finance Act 2024 (Loi de finance 2024), the Registration Code (Code de l Enregistrement), the Sales Tax Code (Taxes sur le Chiffre d'Affaires), the Indirect Tax Code (Code des Impôts Indirects),the Code of Direct Taxes and Assimilated Taxes(Code des Impôts Directs et Taxes Assimilées), The Stamp Duty Act (Code de Timbre), and the Tax Procedure Act (Code des Procédures Fiscales), and Provincial Tax Authorities have been established in the provinces and districts to regulate tax collection. the Tax Procedure Act regulates the relationship between the tax authorities and taxpayers, their respective rights and obligations, the collection procedure and the litigation procedure in order to regulate the collection and payment of taxes. Since the 1992 tax reform, Algeria has been improving the application of its tax policy, coordinating the interests of the State and taxpayers through the leverage of taxation, advancing the development of strategic industries and important regions, and perfecting the mechanisms for the internal functioning of the market economy.

In the medium-term budgetary framework (2024-2026), Algeria plans to seek a sustained improvement of the Algerian business environment through the development of new tax measures and the broadening of the tax base within the framework of tax reform. Resources will be mobilised to combat tax fraud and evasion, and procedures will be simplified to improve the quality and effectiveness of public expenditure.

On 6 November 2006, the Government of the People's Republic of China and the Government of the People's Democratic Republic of Algeria signed the Agreement between the Government of the People's Republic of China and the Government of the People's Democratic Republic of Algeria for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and On Capital in Beijing.

On 27 June, Algeria signed the Multilateral Convention on the Implementation of Measures Concerning Tax Treaties to Prevent Base Erosion and Profit Shifting at a signing ceremony held in Paris. Algeria became the 103rd jurisdiction to join the BEPS MLI.

Algeria has officially joined Advanced Training on Value Added Tax Fraud (ATAF) to become, the 43rd member of this forum.

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