ANNOUNCEMENT 30 Dec 2013
The government of Algeria on 30 December 2013, passed Finance Law 2014 (i.e. Law numbered as N°13-08), which includes amendments that affect foreign parties operating in the Algerian jurisdiction.
NUMBER OF INTERVENTIONS
Loi N°13-08 (Arabic) Official Journal of People's Democratic Republic of Algeria. http://www.andi.dz/PDF/loifinance/LF%202014%20FR.pdf
On 30 December 2013, the government of Algeria passed the Finance Law 2014 - i.e. a Law which came into effect on 01 January 2014. According to this Law, import-export companies situated in the Algerian jurisdiction (i.e. companies that are engaged in foreign trade activities), according to the Finance Act 2014, have to be owned 51% by Algerian nationals -- and therefore, foreigners are limited to owning only 49% of companies of this profile. Previously, foreign parties were allowed to own up to 70% of companies of this nature.
The Finance Law 2014, for the first time established that foreign investment initiatives in partnership with Algerian local parties, which at an integration rate of 40% trigger relevant transfer know-hows in the country and/or are engaged in the national production of goods, have the ability to acquire a range of tax and pre-tax benefits. The rate of these benefits according to the Finance Law 2014, are to be determined on an individual basis by the National Investment Council of Algeria.
The Finance Law 2014, liberalises the approval processes relevant to foreign direct investments as well as national investments involving foreigners. Specifically, for investments of these two profiles, the compulsory screening requirement by the National Investment Council has for the first time been removed. Yet, the screening process will still remain compulsory for projects requesting tax and pre-tax benefits.
The Finance Law 2014, for the first time, establishes that the import of used equipment not more than two years old and not available in Algeria will be banned after 31 December 2015.
The Finance Law 2014, besides the commercial documentary credit also allows for cash against documents to be used as a method of payment for imports - as in 2009 only commercial documentary became an allowed method for payment of imports. The restrictions were completely abolished through the Finance Act of 2017.