People’s Democratic Republic of Algeria

Algeria uses a progressive tax system for residents and non-residents. Residents are taxed on their worldwide income, while non-residents are taxed only on Algerian-sourced income. Income tax is applied using a progressive scale, with rates ranging from 0% on lower income bands up to a maximum marginal rate of 35% for higher-income earners. To stimulate economic development, there are also regional tax incentives, such as a 50% income tax reduction for five years for individuals or companies operating in certain southern provinces like Tamanrasset and Adrar. The Directorate General of Taxes (DGI) is the government body responsible for administering and collecting taxes.

Employers and employees contribute to payroll taxes, which primarily consist of social security contributions, personal income tax (Impôt sur le Revenu Global – IRG) on employees’ salaries and vocational training tax, which are managed by employers. Employers are required to contribute approximately 26% of the employee’s salary to the social security system, while employees contribute approximately 9% of their gross salary. These contributions fund benefits such as retirement, health insurance, unemployment and work-related injury coverage. Other contributions may apply, including for vocational training and apprenticeship programmes. Employers must register with Algeria’s National Social Security Fund (Caisse Nationale des Assurances Sociales – CNAS) and ensure timely monthly submission of declarations and payments to avoid penalties.

Algeria’s taxable period aligns with the calendar year. Employers must submit their monthly income tax declarations within 20 days after the month in which salaries were paid. Any taxes withheld must be paid at the same time the monthly return is filed. Annual tax declarations by employers in Algeria are mandatory. Employers must submit an annual return – known as the G50 form – by 28 February of the following year, summarising total salaries paid and the personal income tax (PIT) withheld from employees. Employees with employment income only generally do not need to file an annual tax return, as the employer handles the tax deductions and reporting.

Employers are required to make several mandatory contributions based on the employee’s gross salary. These include a 26% contribution to the Social Security Fund (CNAS) which covers pensions, health and maternity, unemployment insurance, work accidents and diseases insurance. Employers with more than 20 employees must also contribute 1% of payroll to the Vocational Training Fund (FNR) and 1% for apprenticeship training. These contributions are declared and paid monthly to the relevant authorities.