Offers several new investment incentives
29 Dec 2022
On 29 December 2022, Algeria published Law No. 24-22, implementing the Finance Law 2023. The Law provides new investment incentives, as follows:
• Financial Law 2022 established an obligation to reinvest 30% of profits corresponding to tax exemptions or reductions granted during the operating phase for companies benefitting from the preferential regime, within four years from the closing date of the fiscal year with respect to results subject to the preferential regime. Under Financial Law 2023, the requisite reinvestment can be carried out by:
(i) The acquisition of tangible or intangible assets,
(ii) The acquisition of investment securities,
(iii) The acquisition of shares, equity shares or similar securities
(iv) The acquisition of a stake in the capital of a company with the "start up" or "incubator" label,
• It extends the permanent corporate income tax exemption for fishing and aquaculture activities.
• It provides that R&D expenses are deductible up to 30% of the amount of the profit, up to a cap of $1,474,904.000 (DZD200,000,000).
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Type:
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Promotion and facilitation (Investment incentives)
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Industry:
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Not industry specific
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Primary (Agriculture, forestry and fishing)
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Sources:
