Algeria Salary and Tax Calculators

Welcome to the Algeria Salary and Tax section of iCalculator. In this section we provide detailed tax guides, tax calculators and salary calculators for Algeria. On this page we provide an introduction to the tax system in Algeria, a salary calculator for Algeria and a list of calculators and tools we provide for Algeria.

Algeria Salary Calculator 2019/20

Calculate your take home pay in Algeria (that's your salary after tax), with the Algeria Salary Calculator. A quick and efficient way to compare salaries in Algeria, review income tax deductions for income in Algeria and estimate your tax returns for your Salary in Algeria. The Algeria Tax Calculator is a diverse tool and we may refer to it as the Algeria wage calculator, salary calculator or Algeria salary after tax calculator, it is however the same calculator, there are simply so many features and uses of the tool (Algeria income tax calculator, there is another!) that we refer to the calculator functionally rather than by a specific name, we mention this here to avoid any confusion.

Algeria Tax Calculator 2019/20
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Advanced Algeria Salary Calculator 2019/20
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Algeria Wage Calculator. This image shows the Algeria flag and information relating to the tax formula for the Algeria Tax Calculator

How to calculate your salary after tax in Algeria

You can find detailed guidance on how to calculate income tax and your salary after tax in Algeria here.

Taxation in Algeria

Majorly known for petroleum, Algeria is the 54th largest economy in the world. The tax system in Algeria is vast and largely inspired by France. The Algerian tax system is arranged and governed as per five key tax codes, namely, the code of direct taxes, the code of taxes on sales, the code of registration duties, and the code of stamp duties.

There are various types of taxes that you will have to pay for various agricultural, residential, and commercial, non-commercial purposes in Algeria. Generally, tax applies to businesses, residents and resident corporates (regardless of their nationality). Although corporate tax remainsrelatively low, the nation also levies indirect taxes like VAT and other taxes on consumption of various products. Let's learn all about the taxes you will have to pay in Algeria.

Income tax

If you are a tax resident, you are liable to pay income tax on your worldwide income, while others will pay tax only on their income that is generated through Algerian sources. Now the question is, who is considered as a tax resident by the law. You are a tax resident, if:

  • You own a home or are the beneficial owner of a home in Algeria.
  • You are a tenant with a rental term of minimum 1 year.
  • You work in Algeria.
  • Your place of primary residence is in Algeria.
  • You are an agent of government serving in a foreign nation and not paying personal tax in that country.

Which types of income is subject to tax in Algeria?

Employment income, business income, investment income, directors' fees, stock option granted to employees, and capital gains are the kinds of earnings that are taxed in general. Employment income includes salaries and wages, self-employed or businesses income includes any kind of profit made out of commercial activities. Self-employed as well as corporates share a similar tax base, according to which,

Taxable Income = Gross Income - Expenses Incurred in a financial year

A few things to remember about income tax in Algeria are as follows.

  1. Single Flat Rate Tax (IFU or Impôt Forfaitaire Unique) is applied to income below DZD30.
  2. Income related to non-market business is taxed as per IRG at a rate of 20%.
  3. Artists who are not tax residents are subject to 15% withholding tax (not liable if the income is earned against any cultural agreement exchanges, on national holidays, or for festivals, cultural and artistic events organized by the Ministry of Culture)
  4. Revenue from investments is subject to 1% of the interest earned (not more than DZD50, 000), and 10% for interest payments exceeding DZD50, 000.
  5. There is no specific measure related to the taxation of stocks granted to employees.
  6. Certain expenses like insurance premiums can be deducted as expense from the employment income.
  7. Depreciation and general expenses are deductible under business income tax.
  8. Expenses like interest on loans, pension contributions, social insurance and maintenance allowance can also be deducted from the net income.

Property tax

Developed and undeveloped properties located in Algeria are liable to be taxed annually at different rates. Tax rental value of the property acts as the tax base in this case.

Value Added Tax

In Algeria, Value Added Tax or VAT is levied at a rate of 17%. For basic needs sectors like food and medicine, the same is imposed at a rate of 7%. There is a domestic consumption tax too that is imposed on few products like beer and tobacco as well as luxury food.

You can read more about VAT in Algeria and calculate VAT online using the Algeria VAT Calculator

Other Corporate Taxes

This includes Capital Duty, Real property tax, Social security tax, stamp duty, and transfer tax. There is certain tax (2% as of now) that corporates are liable to pay on their turnover. Also, you are liable to pay pollution tax if your company owns assets that can cause environmental damage. A fixed rate of tax applies to imports too.

Professional Activity Tax

Any profit earned from industrial, commercial, or non-commercial income is subject to tax in Algeria. Whether you are involved in production, ready to buy a company or a reseller, you will have to pay this tax if your turnover exceeds 80,000 dinars (in case of services, this limit changes to 50,000 dinars).

Double Taxation Laws

Algeria has signed treaties with a few nations that call for double taxation. The Nation Investment Development Agency Website shows details of these agreements. For non-residents in Algeria the tax may vary as per the treaty signed with their country.

Algeria Salary and Tax Calculators