2024 Finance Act by Samir Hadj Ali

1. 2024 Finance Act
A founding name, a firm of values
1

2. Abreviations
CIDTA Direct taxes and related taxes Code
CPF Code of Fiscal Procedures
ERA Annual Summary Statement
IRG Personal Income Tax on Salaries
LF Finance Act
MDA Million dinars
TAP Turnover tax
TP Transfer Pricing
UGCAA General Union of Algerian Traders and Artisans
VAT Value Added Tax
2

3. 1)Direct taxes and related taxes Code (CIDTA)
Article 6 LF -art 102 CIDTA: The deadline for annual income tax returns may be extended
by decision of the Minister of Finance in the event of force majeure, This extension may not,
however, exceed three(3) months. This extension is related to income tax for individuals,
as already stated for corporate entities.
Article 12LF-Art183ter:All individuals or corporate entities carrying out wholesale
operations are required to file a customer statement, including a digital version or by e-
declaration (DGE), at the same time as the returns required under articles 18 and 151 of the
CIDTA.
This change enables the digitalization of Statement 104, a summary statement of sales with
designation of customers who have contributed to the company's sales.
1.Statement of sales –104 form for manufacturers and wholesalers.
3

4. • Tax payers who have not filed the return
addressed under article 75-3 of CIDTA (Return
G N°29 Ex 301 bis) are subject to a fine, which
rate is fixed at 5% of the annual total payroll
cost.
2. Annual return on taxable salaries and related income tax.
This annual return is related to the statement of
taxable salaries which recalls for every employee
the monthly taxable income together with the
personnal income tax withheld at source (IRG).
The deadline for filing this return is April 30 of
each year, the same as the deadline for filing
corporate income tax returns.
As a reminder, the payroll cost is defined under
article 196 quater of the same code as gross
remuneration paid to employees before deduction
of social security and pension contributions and
IRG/salaries.
4

5. • Article14 LF –Art de 217 à 231:
The TAP turnover tax has been withdrawn for all taxpayers.
• On the subject of the withhdrowal of TAP
• Viewpoint, : Entities that settle TAP at the time of collection should continue to pay it on all future collections,
where these relate to sales prior to 2024.This reasoning is based on the fact that, on the one hand, the definition
of TAP in article 217 of the Direct Tax Code (CIDTA) is given as a tax due on the basis of sales made in
Algeria by the taxpayers in question, and that, on the other hand, the exception given for making payment on
the basis of collection relates to the settlement of this tax.Article 221-Bis of the CIDTA even states that, in the
absence of collection, TAP becomes payable after a period of one (1) year from the date of legal or material
delivery of the goods.
• In other words, the intent of the text is that, ultimately, the TAP to be recovered by the tax authorities is that on
sales and not on collection. This interpretation seems logical, since a different treatment would create an
inequality of tax treatment between former taxpayers who paid TAP when their invoice was issued (or on
delivery) and those who paid it on collection.
• The tax authorities have released on February 12th, 2024, a similar conclusion. TAP form may be added on the
JIBAYATIC online platform upon request.
3. Withdrawal of TAP
5

6. • Article 15 LF:
This article created within the CIDTA the application of a
solidarity tax due by taxpayers engaged in the pipeline transport
of hydrocarbons and mining activities, the proceeds of which will
be allocated exclusively to local authority budgets.
The applicable rate is : -3% for piped hydrocarbon transport
activities.-1.5% for mining activities.
4. Implementation of a local solidarity tax.
6

7. • A reduction of 30% is granted for sales under wholesale conditions,
paid for by a means of payment other than cash.
• The sales figure on which the tax is based does not include: -
transactions between units of the same company ;
• - transactions carried out between member companies belonging to
the same group, as defined by article 138 of the code of direct taxes
and assimilated taxes".
• - The taxable event is :
• a) for the activity of transporting hydrocarbons by pipeline, by the
total or partial collection of the price;
• b) for mining activities, by the legal or material delivery of the
goods".
Local solidarity tax.
7

8. • Article 16 LF art.252CIDTA
Extension of property tax exemption to buildings and building additions used
for activities carried out by investment promoters eligible for employment
assistance schemes governed by the national agency for support and
development of entrepreneurship for a period of 3 years.
The period of exemption is 6 years when these constructions and additions to
constructions are installed in zones to be promoted.
5. Exemption from property tax for certain property developers.
8

9. • 2 –Value Added Tax (VAT):
• Article 40 LF -76 CTCA
"Art. 76-1. - Within twenty (20) days of each month at the latest, any person
carrying out transactions subject to value-added tax is required to submit or
send to the tax collector in whose jurisdiction its registered office or
principal place of business is located, a statement showing the amount of
business carried out for all its taxable or exempt transactions.
To enable better monitoring of exempt transactions, the amount of VAT-
exempt sales must now be detailed on the monthly GN°50 declaration, in
addition to taxable transactions.
6. Statement of taxable and exempt transactions from VAT
9

10. • 3)Code des procédures fiscales:
• Article 44 LF-20 CPF (Tax audit)- the audited taxpayer is informed that
the audited taxpayer's charter of rights and obligations is available for
consultation on the tax administration's website and that he/she has had a
minimum preparation period of twenty (20) days from the date of receipt
of this notice.
• Article 44 LF -20bis CPF(Spot check) the taxpayer is informed that the
charter of rights and obligations of the audited taxpayer can be consulted
on the tax administration's website and that he/she has had a minimum
preparation period of twenty (20) days from the date of receipt of this
notice.
• Article 45 LF -Art.21 CPF:(Deep audit of global tax status) the taxpayer
(natural person) is informed that the charter of rights and obligations of
the audited taxpayer can be consulted on the tax authorities' website and
that he/she has had a minimum preparation period of thirty (30) days
from the date of receipt of this notice.
• The main purpose of these provisions is to refer to the digital version of
the taxpayer's charter.
7. Code of fiscal procedures:
10

11. • Article 48 LF -81-2 CPF This article abolishes implicit rejection in cases where
the appeals commission does not formally rule within the four-month time limit
and specifies that the said time limit begins to run from the date on which the
appeal is lodged with the commission.
• Article 49LF Art.41bis -A representative of the General Union of Algerian
Traders and Artisans (UGCAA) is added as a member of the wilaya appeals
commission. -A representative of the General Union of Algerian Traders and
Artisans UGCAA) is added to the membership of the regional appeals
commission as a member.
• Article 50 LF-Article 82-1 of the CPF Decisions notified by the administration,
following an opinion issued by the appeals commissions, may be brought before
the administrative court within a period of four months, whether notified before
or after expiry of the period stipulated in article 81-2 of the tax procedures code.
7. Code of fiscal procedures:
11

12. • Article 51 LF- Art 83 CPF: Appeals must be lodged with the administrative court at the
place of taxation. However, in the event of a change in the structure responsible for
managing the taxpayer's tax file, the administrative court with territorial jurisdiction is
that in which the new structure is located.
• Article 57 LF-Art. 156 CPF: The payment schedule is granted for a maximum period of
sixty (60) months, with an initial payment of 5% of the amount of the tax debt.
Beneficiaries may be required to provide sufficient guarantees to cover the amount of
taxes for which payment schedules may be granted.
7. Code of fiscal procedures:
12

13. • 4)Miscellaneous tax provisions: Article 66 of the Finance Act 2024
provides the possibility for the tax authorities to call on expert assistance
during their tax audits when these require special knowledge or skills,
particularly in relation to :
• - International tax issues (transfer pricing, valuation of intangible assets,
etc.) –
• Complex issues specific to certain business sectors, such as oil and mining,
pharmaceuticals, financial services, etc.
8. Miscellaneous tax provisions: Expert opinion
13

14. MEASURES IN THE AMENDED FINANCE ACT FOR 2023
Loi de finances rectificative pour 2023
14

15. • ANNUAL SUMMARY STATEMENT (ERA)
• Art. 11 - The provisions of articles 151 bis and 192 bis of the Direct Tax Code are amended,
supplemented and worded as follows:
• "Art. 151 bis. - 1) The corporate entities referred to in article 136 of the present code are required to
submit, by September 30th of each year, ............... (unchanged until) and related statements. Where the
deadline for submitting this statement expires on a legal vacation, the deadline is postponed to the first
working day thereafter.
• Art. 151bis -1) The corporate entities referred to in article 136 are required to submit, by May 20 at the
latest, an annual summary statement by electronic means, containing information to be extracted from
the annual income tax return and the attached statements.
2) Failure to submit the annual summary statement by electronic means, late submission and/or
submission of a statement containing information that does not comply with that contained in the
annual income tax return, will result in the application of penalties.
ERA : Deadline amended to 30 septembre
15

16. • TRANSFER PRICING
• It should be recalled that transfer pricing
regulations were included in Algerian tax
legislation in 2007, addressing the concept of
conditions that may differ from those that would
be agreed between independent companies.
• Later, in 2010, the Supplementary Finance Act for
2010 required transfer pricing documentation to be
provided on an annual basis, at the same time as
the annual corporate income tax return.
• The required documentation was due by April 30
following each tax year, starting on April 30, 2013,
with the annual tax return for the 2012 tax year.
• For its first application, the implementing decree
required a rollback of all transfer pricing
transactions since 2010. Failure to submit this
declaration has always given rise to a fine:- From
implementation to fiscal 2016: DZD 500,000- From
fiscal 2017 to fiscal 2022: DZD 2,000,0000-.
Prix de transfert: Nouveau critères d’application de la documentation.
From fiscal year 2023: DZD 15,000,000.
Unlike previous legislation where TP documentation was
required from all companies based in or outside Algeria,
directly involved or indirectly involved in the
management, control or share capital of an entity
operating in or outside Algeria, the Finance Act for fiscal
year 2024 has made the following changes:
This obligation applies to all companies whose total
annual sales (excluding VAT) and/or balance sheet total
(gross) exceeds 1,000,000,000 DZD (1 billion dinars).
Where applicable, TP documentation must be filed online,
which means that changes to the filing platform (Jibayatic)
are to be expected
The deadline remains unchanged i.e., April 30th of the
following year.
16

17. • TRANSFER PRICING
Article 194 of the Direct Tax Code .A 7th
paragraph is added, worded as follows:
7) Failure to respond or incomplete response to
the formal notice provided for in paragraph 4 of
article 169 bis of the Code of Tax Procedures
shall result in the application, for each fiscal
year audited, of a tax penalty equal to 2% of the
amount of transactions concerned by the
documents or additions not made available to
the tax authorities, after formal notice has been
given to the company concerned. The amount of
this tax penalty may not be less than ten million
dinars (10,000,000 DA) per fiscal year.
Transfer pricing: New requirements for the application of documentation.
Article 169 bis of the Code of Fiscal Procedures states that,
at the request of the tax authorities, companies must
provide the auditors with additional documentation in
addition to the initial documentation.
It should therefore be understood that companies subject
to an on-site audit are liable to penalties of 2% of the
amount of the transactions concerned, but not less than 10
MDA.
This provision is to charge additional penalties if during a
tax audit, taxpayers fail to respond or provide incomplete
data on Transfer Pricing.
17

18. • DISPOSITIONS FISCALES DIVERSES
Art. 15 - Taxpayers who, by December 31, 2024 at the
latest, pay in a single instalment, or in instalments, the full
principal amount of their tax and parafiscal debts, fines
and pecuniary penalties, more than four (4) years old from
the date of assessment, are exempt from payment of
collection penalties. The amount paid to the tax collector is
deemed to be allocated, in the first instance, to payment of
the principal duties. The provisions of the present article
do not apply to cases of fraudulent maneuvering.
Uncodified provisions
This provision allows companies with tax liabilities of
more than four years at the date of publication of this
Supplementary Finance Act to pay the principal amount
without having to pay collection penalties.
18

19. Thank you for your interest in reading this presentation.
19