Measures to support

 Measures for supporting investment
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Measures for supporting the enterprise


Reduction of the wage and social security contributions

  • Exemption from of the global contribution applied to any employer who engages training or professional development for its workers. The global contribution of social security is covered by the National Fund for unemployment insurance for up to three (3) months;
  • Additional allowance for employer's share of social security contributions for all employers recruiting nine (9) employees or more and who will have doubled its initial size. The allowance will be granted for a period of one year;
  • Coverage by the State of the share of employers' social security set at 7% of the gross remuneration in favor of the employers and master craftsmen who recruit under the Device of Assistance to the professional integration (DAIP).
  • Granting for three (3) years of a monthly subsidy for employment to any employer for each recruitment when the employment contract is concluded for an indefinite period.
  • Coverage by the National Fund for unemployment insurance of the differential contribution and reductions arising of the employment subsidy;
  • Allowance of the employer's share of social security contributions for any recruitment of job seekers, including first-time applicants, regularly registered to employment agencies, conducted in the sectors of tourism, crafts, culture, agriculture, construction sites and public works and services companies for a period of six (6) months;
  • Most important allowance of the employer's share of social security contributions for all recruiting made for a period of at least twelve (12) months in the regions of the Highlands and the South for three (3) years maximum ;
  • Allowance of the employer's share of social security contributions for all employers up to date with its contributions to social security, under each job seeker recruited for a period not less than twelve (12) months;
  • State contribution to wages within the framework of an employment integration contract for the recruitment of young people placed in insertion contracts, in public and private companies. The contribution is paid for three (3) years for integration of graduates contracts, two (2) years for contracts of professional integration and one (1) year for contracts for training - integration.
  • The reduction of employers' contribution to social security, covered by the state. This will increase from 56% to 80% in the wilaya of northern countries, and 72% to 90% in the wilaya of the Highplateaux and the south,

Relief of taxes and investment incentives

 1. MEASURES FOR COMPANIES SUPPORT (Updated April 2017)

                                                                                  

1.1  Reduction of the wage and social security contributions

 

  • Exemption from of the global contribution applied for any employer who engages training or professional development actions for his workers. The global contribution of social security is supported by the National Fund for unemployment insurance for up to three(3)months;
  • An employer recruiting jobseekers enjoys from a 20% reduction of his social security contribution share for each job seeker recruited for a period equal to at least twelve (12) months;
  • Support by the State of the employers' social security share set at7% of the gross remuneration in favor of the employers and master craftsmen who recruit within the framework of the Assistance Plan to the professional integration(DAIP);
  • Granting for three(3) years of a monthly subsidy of 100 DA, to any employer for each recruitment when the employment contract is concluded for an indefinite period.
  • Support by the National Fund for unemployment insurance of the contribution differential resulting from reductions and the employment subsidy;

  • State contribution to wages within the framework of an employment integration contract for the recruitment of young people being in insertion contracts, in public and private companies. The contribution is paid for three(3) years for graduates integration contracts, two(2)years for professional integration contracts and one (1) year for training - integration contracts.
  • Reduction from  the employers' social security contribution share for each jobseeker recruited, for employers who are up to date with their social security contributions and who recruit for a period of at least twelve (12) months , Jobseekers regularly registered with employment agencies. These allowances are progressive according to the north, highlands and south regions of the country.

 

The employer shall benefit from this reduction as long as the employment relationship is maintained, within a maximum of three (3) years. The contribution differential resulting from the reduction is supported by the State budget;

 

1.2 Taxes Relief and investment incentives.

 

  • Reduction of 15% from the companies profits Tax (IBS) for SMEs located in the wilaya eligible for the highlands aid fund Art8 FL 2004);

  • Reduction of 20% from the companies profits Tax  (IBS) for SMEs located in the wilaya eligible for the south aid fund;
  • Exemption from the Tax on the turnover (TAP) for transactions carried out between member companies under the same corporate group and the elimination of the deduction limitation allowed for expenses;
  • Temporary Exemption from the companies profits Tax IBS for a period of five ( 05 ) years, from the activity start up for  venture capital companies in order to develop these financial instruments for companies;
  • Reduction of 50 % of the Total Income Tax (IRG) and the companies profits Tax (IBS) for the investments in the wilayas of Adrar, Illizi, Tindouf and Tamanrasset for a period of five ( 05 ) years;
  • Rearrangement of the allowed reductions for determining taxable profits to the companies profits Tax (IBS);
  • Customs Clearance authorization for  renovated production lines;
  • Temporary exemption from IBS or IRG and the TAP during five (5) years for investments insome industrial sector, and  3% reduction of interest rate applied to bank loans for f investments in certain industrial sector;

 

The industrial sectors eligible for these benefits are:

 

  • Steel and metallurgical industries
  • hydraulic binders
  • electric and household appliances
  • industrial chemicals
  • mechanical and automotive
  •  pharmaceuticals
  • Aeronautics
  • shipbuilding and repair
  • advanced technologies
  • agri-food industry
  •  textiles and clothing
  •  leather and derivatives
  • furniture industry

 

  • Customs duties, VAT and taxes having equivalent effect on R&D equipment locally purchased or imported, when these companies established a R&D department;

  

1.3  Tax burdens relief and incentives for export intended investment

 

  • Customs duties and VAT exemption on imported goods intended to be processed for export;
  • Customs duties exemption and duty free purchase of goods, acquired by the exporter, and which are intended to be re-exported or to be incorporated in the products manufacture, composition or packaging, intended for export as well as the services directly related to the export operation;
  •  the Fund for the promotion of exports support of expenditure related to external markets surveys, participation in fairs and exhibitions,  prospecting external markets, the transportation costs to the export of perishable products;
  • IBS permanent exemption concerning exports operation generating currencies, namely:

-  sale transactions and services intended for the export.

 

These exemptions are granted in proportion to the turnover realized in currencies. To enjoy from these measures the companies must present to the competent tax authorities, a document attesting the payment of receipts in currencies to a bank established in Algeria

  • Customs duties exemption and duty free purchase of goods, which are intended to be incorporated in the products manufacture, composition or packaging, intended for export as well as the services directly related to the export operation;

  

1.4. Incentives related to the financing aspect

 

  • Granting of unpaid loans varying according to the cost of greenfield investment not exceeding:
    - 25% of the investment total cost when it, is less than or equal to two(2) million dinars;
    - 20% of total cost of the investment when it is more than two(2) million dinars, less than or equal to five(5) million dinars;
  • Granting of unpaid loansto22% when the investments are implemented in specific areas or in the wilaya of the South and the Highlands;
  • Granting of bank creditnotexceeding70% of the total investment.

  • Eligibility of the bank loans on the bonus investment credit set up at :

 

    • 75% of the debtor rate applied by banks and financial institutions for investments made in agriculture, water resources and fisheries;
    • 50% of the debtor rate applied by banks and financial institutions for investments made in all other sectors when the investments of the unemployed person(s) promoter(s) are located in specific areas, or in the wilaya of the South and Highlands and the rate subsidies provided for here above shall be raisedto90% and to 75% of the debtor rate applied by banks and financial institutions.

 

The beneficiaries of credit support only the differential of non subsidized interest rates.

 

•Granting a low interest rate of loans granted by banks to SMEs.

-Creation and activity expansion
-Algiers-Oranand Annaba: 0.25%
-Wilayas of the south and the highlands and 1.5%
-Other wilayas: 1%

 

  • the Treasury makes available for  the state banks, a long-term financing for companies (FL2008). The first granted allocation is about 100 billion DA;
  • The maximum level of the financial guarantee provided by the Guarantee Fund for SMEs has increased from 50 to250 million DA;
  • Setting up of investments funds for wilayas, in charge of contributing in the SME’s share capital;
  • Reinforcement of the classical banking system for financing through the development of leasing for SMEs, SMIs and which provides a favorable environment with attractive tax benefits for equipment investment financing;
  • Establishment of interbank companies of  asset and debt recovery management. These mechanisms are intended to reduce disputes on debts and boost credit to investors;
  • The Treasury Support, to the power bill for  economic activities outside agriculture in the wilayas of the South with retroactive effect to January 1, 2008;
  • interest rate subsidy for granted banks credits to:
  • 60% for investments in the various sectors of activity
  • 80% for investments in agriculture, water and fisheries
  • 80% for investments in specific areas and in the wilayas of the South and highlands (investments in various sectors of activity).
  • 95% for investments in specific areas and in the wilayas of the South and highlands (investments in the agricultural, hydraulic and fishing sectors);
  • A National Investment Funds crowdfunding may be granted for Joint-stock companies, whose share capital is more than 100 million DA. The contribution can be up to 34% of the equity.
  • Acquisitions of equipment carried out by lessors within the framework of a financial lease contract with a promoter enjoying advantages provided for by the Investment Ordinance, benefit from Customs duties exemption on non excluded goods directly involved in the investment project implementation

 

 

 

 

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