ANNOUNCEMENT 28 Dec 2016
The government of Algeria, on 28 December 2016, announced that as of 01 January 2017, the Finance Act 2017 (Law Numbered as 16-14) will become effective.
The Finance Act 2017 has embedded within it amendments which affect foreign investors operating in the Algerian jurisdiction.
NUMBER OF INTERVENTIONS
Official Journal of the Algerian Republic. La loi de finances pour 2017. Arabic. http://www.joradp.dz/FTP/jo-francais/2017/F2017002.pdf
On 28 December 2016, it was announced that as of 01 January 2017, the Finance Law 2017 will enter into force within the Algerian jurisdiction.
Article 88 of the law introduces new support measures for the assembly industries. Production companies which operate in the assembly field are eligible for a preferential income tax regime. The incentive intends to promote the growth of the local assembly industry. Applicants must document the local value they create in terms of jobs, investment and input sourcing.
An amendment of the Finance Law 2017 relevant to the Global Trade Alert scope introduces (for the first time) a specific tax amounting to 10%, on advertising production and dissemination contracts which are carried outside the Algerian jurisdiction and are exclusively related to products manufactured abroad.
Article 111 of Algeria's Finance Act for 2017 removes the obligation to pay imports via documentary credit. The requirement had been introduced with the Complementary Finance Law of 2009 which established documentary credit as the only means of payment. The requirement had been relaxed to include documentary remittances via the Finance Act of 2014. Its full elimination aims to facilitate imports and thus lower domestic prices.