Investments, as defined in Article 4 of this law, may, at the investor's request, benefit from one of the following incentive schemes:
The incentive scheme for priority sectors: "Sectors Scheme";
The incentive scheme for areas to which the State attaches particular importance: "Areas Scheme";
The incentive scheme for investments of a structuring nature: "Structural Investment Scheme".
Prerequisite: Registration with the Agency.
To benefit from the advantages provided by the provisions of this law, investments must be registered with the competent one-stop shop prior to their implementation.
The registration of the investment is materialized by the issuance, on the spot, of a certificate accompanied by the list of goods and services eligible for the benefits authorizing the investor to claim with the administrations and organizations concerned (Executive Decree No. 22-299 of September 8, 2022).
| Structured Investment System | Regional System An incentive system for regions that the state considers of special importance |
Sectoral System Incentive System for Priority Sectors |
|---|---|---|
| Investments eligible for the Structured Investment Scheme are those with a high potential for wealth creation and job generation, which enhance the region's attractiveness and drive economic activity towards sustainable economic, social, and regional development. These investments contribute specifically to: - Import substitution, - Export diversification, - Integration into global and regional value chains, - Technology acquisition and improved performance. Investments meeting the following criteria are eligible for the Structured Investment Scheme: - Direct job creation: equal to or exceeding five hundred (500) jobs, - Investment amount: equal to or exceeding ten (10) billion Algerian dinars. The criteria for qualifying investments for the Structured Investment Scheme are defined in Executive Decree No. 22-302 of September 8, 2022. |
Investments made in the following areas are eligible for the "Zone System": Sites in the High Plateaus, the South, and the Far South; The list of sites in the regions to which the State gives special importance is defined by Executive Decree No. 22-301 of September 8, 2022. |
Investments in the following sectors are eligible for the "Sectoral System": Mining and quarrying; The list of activities ineligible for the benefits provided under the Sectoral System is defined in accordance with Executive Decree No. 22-300 of September 8, 2022. |
In addition to the tax, quasi-tax and customs benefits stipulated in general legislation, investments eligible for stimulus programs benefit from the following:
| Structured Investment System | Regional System An incentive system for regions that the state considers of special importance |
Sectoral System Incentive System for Priority Sectors |
|---|---|---|
| Titled Completion Phase | ||
| The same advantages The benefits of the completion phase can be transferred to the contracting parties with the beneficiary investor, who are responsible for completing the investment, on behalf of the latter. |
Same advantages |
1) Exemption from customs duties on imported goods directly used in the investment project; 2) Exemption from value-added tax on imported or locally procured goods and services directly used in the investment project; 3) Exemption from property transfer fees and real estate registration fees for all real estate acquisitions made within the framework of the investment project; 4) Exemption from registration fees for company formation contracts and capital increases; 5) Exemption from registration fees, real estate registration fees, and national property taxes, including liens on built and unbuilt real estate used for investment projects; 6) Exemption from property tax on real estate properties used in the investment project for a period of ten (10) years, starting from the date of acquisition. |
| Titled Exploitation Phase | ||
| Same advantages For a period ranging from five (5) to ten (10) years from the date of commencement of operations Other advantages Structured investments may benefit from state support through partial or full coverage of the development works and basic infrastructure necessary for their implementation, based on an agreement drawn up between the investor and the agency acting on behalf of the state. The agreement is concluded after approval by the government in accordance with Executive Decree No. 22-302 dated September 8, 2022 |
The same benefits For a period ranging from five (5) to ten (10) years, starting from the date of commencement of operations: |
• Exemption is granted, for a period ranging from three (3) to five (5) years, starting from the date of commencement of operations: – from corporate income tax; – from the professional activity tax. |
In the case of engaging in mixed or multiple activities, only those eligible for the benefits of this law entitle the beneficiary to them.
The beneficiary of these benefits must maintain accounting records that allow for the determination of the turnover and results corresponding to the eligible activities.
The coexistence of benefits of the same nature established by existing legislation with those provided for by this law does not give rise to the application of the most advantageous incentive. The investment benefits from the most advantageous incentive.
Investments must be completed within a period not exceeding three (3) years.
This period is extended to five (5) years for investments falling under the “zoning regime” and the “structuring investment regime.”
The completion period may be extended by twelve (12) months, renewable, exceptionally, once for the same duration, when the investment has progressed beyond a defined stage.
The completion period begins from the date of registration of the investment with the Agency or from the date of issuance of the building permit, where required.
The duration of the benefits during the operational phase is determined based on evaluation grids developed in accordance with the objectives set forth in Article 2 above and the criteria established for each incentive scheme.
Expansion or rehabilitation investments benefit from the advantages granted during the operational phase, in proportion to the new investments relative to the total investments made (Executive Decree No. 22-302 of September 8, 2022).
Source: Ministry of Industry