Finance Act for 2016 adopted
31 Dec 2015
The Act sets out provisions which, inter alia, aim at improving Algeria's investment legal framework. For instance, Article 2 requires investors to reinvest only 30 percent of received investment benefits resulting from exemptions or reductions of taxes in a four-year period as from the relevant financial close. Previously, 100 percent of the benefits had to be reinvested. Also, Article 55 creates the possibility to use external financing for major projects (“strategic investments”) subject to the authorization of the Government. Further, Article 62 opens up the share capital of state companies to local shareholders (i.e. national and resident in Algeria); State companies are required to retain at least 34 percent of the share capital.
The Act was passed by the National Assembly on 30 November 2015, and entered into force on 31 December 2015.
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Type:
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Promotion and facilitation (Investment incentives)
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Industry:
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