Algeria: Tax developments in response to COVID-19

The subscription deadline of the annual statement of incomes is extended to 30th June 2020.

Extension of payment deadline for the first instalment on IRG/IBS:

The deadline for payment of the 1st IRG/IBS instalment is extended until 20th June 2020.

Repayment schedules :

  • Taxpayers that find themselves in a difficult financial situation may request a repayment schedule for their tax debts.
  • Taxpayers that have previously benefited from a repayment  schedule can request an adjustment of their  schedule in case of cash flow difficulties.

Suspension of the taxation of non-affected benefits :

  • The taxation of profits non allocated of the financial years 2016 and following, as provided by the provisions of Article 15 of the Finance Law for 2020, is suspended.

At the end of July, the General Taxation Department published on its website a press release  on new tax measures to support businesses. As part of the tax-related measures adopted by the public authorities in support of economic operators that are financially impacted by the current health crisis, fines, increases and penalties charged for late filing of declarations and payment of related duties, taxes and fees were cancelled. This measure concerns:

  • The monthly declarations relating to the months of February 2020 and following;
  • The declarations relating to the 1st and 2nd quarter of the same year;
  • The annual declarations of results or income for fiscal year 2019.

It is also envisaged that late payment penalties related to tax rolls for which the date of collection occurred after March 22, 2020 will be cancelled.

The press release specifies that in order to benefit from this measure, the taxpayers concerned are invited to submit a request for an ex gratia remission to be addressed to the relevant tax department, specifying the penalties that are the subject of the request.

Finally, the press release indicates that taxpayers in financial difficulties may request from the competent tax collector the granting of a payment schedule for the payment of the taxes due, according to their financial capacities.

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