This article provides a detailed overview of the corporate tax regime applicable to companies operating in Algeria (DZ) for the year 2025. It covers corporate income tax brackets, special surtaxes, and notable requirements based on the most up-to-date data currently available.
Corporate Tax Overview
In Algeria, corporate tax is assessed on a progressive basis. This means that various income levels or types of activities are taxed at different rates. The tax system is designed to apply different rates not just by profit range, but also by industry sector and specific business activities.
Corporate Income Tax Rates in Algeria (2025)
The latest official data outlines three distinct corporate tax rates for Algerian companies in 2025. While the documentation does not associate income brackets with specific ranges, each rate is generally aligned with distinct sectors or types of companies.
| Income Range (DZD) | Rate (%) |
|---|---|
| All incomes (See sector notes below) | 19% |
| All incomes (Other cases) | 23% |
| All incomes (Other cases) | 26% |
Note: The Algerian government does not publicly disclose detailed income bands or precise applicability by turnover segment for each bracket. The rates above reflect standard segmentation by industry or business type rather than by corporate gross or net income.
Additional Surtaxes for Specific Activities
Some industries in Algeria face mandatory surtaxes on top of regular corporate tax. Special attention should be paid to businesses associated with the tobacco sector and foreign branch profits. The following table summarizes all relevant surtax rates in place for 2025:
| Activity/Condition | Surtax Rate (%) |
|---|---|
| Profits of manufacturers of snuff and/or chewing tobacco | 20% |
| Profits of manufacturers of smoking tobacco, including electronic cigarettes and hookahs | 31% |
| Branch tax on deemed distribution of profits after tax for foreign branches | 15% |
These surtaxes are applied in addition to the standard corporate tax rate. Companies in the tobacco sector or those that operate foreign branches in Algeria should plan accordingly for their effective total tax burden.
Assessment Basis and Applicability
Corporate tax in Algeria is assessed at the corporate entity level. The system applies to legal entities established in Algeria or to foreign entities generating taxable profits from operations in the country.
No minimum or maximum holding periods have been provided in the latest documentation for determining eligibility or specific rates. For further details or potential updates, refer to the official website of Algeria’s tax authorities at www.mfdgi.gov.dz.
Pro Tips for Managing Corporate Tax in Algeria
- Carefully identify your company’s core activities: The applicable corporate tax rate and possible surtaxes hinge on sectoral classification. Accurate industry coding is essential for compliance.
- Monitor changes to surtaxes: Sectors such as tobacco and related product manufacturing are subject to significant additional taxation, impacting after-tax profits.
- Foreign branches should anticipate extra branch tax: Profits repatriated from Algerian branches by foreign companies incur a substantial 15% branch tax over the usual rates.
- Request clarifications for ambiguous brackets: If your company’s income or activities don’t clearly match public guidance, proactively consult the Algerian tax administration for precise categorization.
- Budget for effective rates: Calculate your likely total tax burden (regular rate plus any surtaxes) as Algerian law can trigger substantial variances between sectors.
Key Takeaways
For 2025, Algeria’s corporate tax system imposes progressive rates—primarily 19%, 23%, or 26%—with significant surtaxes targeting tobacco sectors and foreign branches. Official figures do not disclose detailed income segmentation, so sector and activity classification remain the most important factors in determining obligations. Companies planning to operate in or expand within Algeria should prioritize a thorough compliance review and maintain open communication with local tax authorities to stay ahead of regulatory changes. Always consult www.mfdgi.gov.dz for formal requirements or recent updates.