F.A.Qs
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 Investment incentives and encouragement measures

What is ANDI?

ANDI is a government agency in charge of the promotion of investment in Algeria, More informations

What is its role?

Among the many missions of ANDI, we can mention those of

  • Promoting investment in Algeria
  • Issuing decisions granting benefits within the framework of the device to   encourage investment
  • Assisting investors in the implementation of investment projects. More informations

Who takes benefits from advantages granted by ANDI?

 

 

 

Any natural or legal person, resident or non-resident wishing to create a company of Algerian law in an economic activity of producing goods or services that are not excluded.

 The persons having benefited from tax advantages within the framework of different assistance schemes for employment (ANSEJ, ANJEM and CNANC) may be eligible for the support of investment encouragement system within the framework ANDI after:

. expiration of the period of exemption during the operational period, granted within the framework the assistance schemes for employment;

. renunciation to benefits of the assistance schemes for employment

 

 

 

What are the activities that benefit from advantages related to investment encouragement scheme?

 

 

 

All economic activities of production of goods and services, except those excluded by the Executive Decree No. 07-08 of 11 January 2007 and the Executive Decree No. 08-329 of 22 October 2008 completing the list, as well as the activities of gathering waste paper, household waste and other recyclables waste, exercised by individuals and are considered as craft activities, subject to the regime of the single flat tax.

 Besides the conditions required by Ordinance 01-03, as amended and completed, the tax advantages granted to investment promoters within the framework of ANDI device are given in proportion to the rate of integration of the locally manufactured products.

 

 

 

Which natures of investments are eligible to advantages?

  • Creation of new activity (Greenfield);
  • Extension of production capacities by including supplementing investments;
  • Rehabilitation and/or restructuring;
  • Partial or total privatisation.

Est-ce que les biens acquis en leasing sont éligibles aux avantages ?

 

Oui, les biens faisant l’objet d’une levée d’option d’achat, par le crédit preneur, dans le cadre du leasing international sont éligibles aux avantages, à la condition que ces biens soient introduits, sur le territoire national, à l’état neuf.

 

What are the advantages granted by ANDI?

These advantages include three regimes:

1- General Scheme

 a.      realization period

  • Exemption from customs duties on non excluded imported equipments, directly involved in the realization of the investment;
  • Exemption from VAT on non exclude goods and services, whether imported or purchased locally, and that are directly involved in the investment realization;
  • Exemption from property transfer tax in return for all property acquisitions, realized within the framework of the concerned investment;

 b.      Exploitation period:

For a duration of (3) years for project creating more 100 jobs at the startup of the activity and after observation of commencement of activity, established by the tax authorities to the diligence of the investor:

  • Exemption from on company profits tax;
  •   Exemption from Professional activity tax.

This period is extended to five (05) years for projects creating one hundred and one (101) jobs at the startup of the activity, and / or for investment in strategic sectors the list of which is set by the National Council of Investment.


2-Derogatory scheme

2.1.  Scheme for the zones to be developed

 -a      Realization period:

  • exemption from transfer tax on real estate acquisitions realized within the framework of the investment
  • application of the registration fee at the reduced rate of two per thousand   (2 ‰) for acts of companies and capital increases;
  • partial or total taking in charge by the State, after the Agency’s assessment, of expenditures concerning infrastructure works necessary to the implementation of investment
  • VAT exemption for goods and services not excluded from the benefits entering directly in the realization of the investment, whether imported or purchased on the local market;
  • Exemption from customs duties for imported goods not excluded from the benefits, entering directly in the realization of the investment.
  • Exemption from registration fees, land advertisement fees and the domanial remuneration on built and nonbuilt property, granted for the realization of investment projects. This benefit is applicable for the minimum duration of the granted concession.

 Also benefit from these provisions concessions previously granted by decision of the Council of Ministers in favour of investment projects.

 
-b      Exploitation period and for a duration of  ten (10) years:

  • exemption from the on company profits tax;
  • exemption from Professional activity tax.
  • exemption from the acquisition date from the property tax on real property within the scope of investment.
  • Additional benefits of nature to improve and / or facilitate investment, such as the deferral of deficits and depreciation periods.

 

2.2   Investment of particular interest for the national economy (convention) 

a.      Realization period:

  • Exemption from duties, taxes, taxations and other tax deductions on all goods and services imported or locally purchased, that are necessary for the realization of the investment;
  • Exemption from registration fees on transfers of real property allocated to the production as well as advertising law which they are subject;
  • Exemption from registration fees on the constituent acts of companies and capital increases;
  • Exemption from property tax on real estate allocated to the production;
  • Exemption from registration fees, of land advertisement fees and the domanial remuneration on built and nonbuilt property, granted for the realization of investment projects. This benefit is applicable for the minimum duration of the granted concession.

 Also benefit from these provisions concessions previously granted by decision of the Council of Ministers in favour of investment projects.

 b.      Exploitation period:

For a duration of ten (10) years from the observation of commencement of activity, established by the tax authorities to the diligence of the investor:

  • Exemption from Corporate profits tax;
  • Exemption from Professional activity tax;
  • Exemptions from or reductions of taxes, duties or taxes, including value  added tax levied on the price of goods produced by the investment within the scope of emerging industrial activities upon decision of National Council of Investment.
  • Other benefits upon decision of National Council of Investment such as the partial or total coverage by the State, after evaluation of the Agency of expenditure related to infrastructure works, required for the completion of the investment.

 

Are there other benefits granted to investment by law?

Apart from the advantages of the derogatory scheme of area:

a.    For investments implemented in ADRAR, ILLIZI, TAMANRASSET, and TINDOUF :

          - Reduction of 50 % of the Global Income Tax (IRG) for a period of five ( 05 )  years;

          - Payment of a dinar per square meter from the State fee for a period of 15

            years and 50% reduction beyond this period, for land concessions intended

           for investment projects.

 b.   For investments implemented in the south :

- Payment of one dinar per square meter of the State owned fee for a period of  10 years and reduction of 50% beyond this period for land  concessions for investment projects.

- Payment of one dinar per hectare for a period from 10 to 15 years, and beyond this period, a reduction of 50%, of the State fee on new farms

- A bonus of 4.5% interest rates applicable to bank loans for investment in tourism projects;

- A bonus of 4.5% interest rates applicable to bank loans to actions of modernization of tourist establishments and hotels;

C.   For investments implemented in the high lands :

- Payment of one dinar per square meter of the State fee for a period of 10 years and reduction of 50% beyond this period for land concessions for investment projects.

Payment of one dinar per hectare for a period from 10 to 15 years, and beyond this period, a reduction of 50%, of the State fee on new farms;

What are the areas to be developed?

All The wilayates of the South, some wilayates of the highlands and some municipalities of some wilayates of the highlands.

 Zones concerned  by the derogatory scheme

 Are eligible for special advantages of the state, investment realized in the wilayas of the South and the High lands.

  • In the wilaya of the South, the regions to which are applied the specific benefits are: wilaya of Adrar, Biskra, Bechar, El Oued, Ghardaïa; Illizi; Laghouat; Ouargla, Tamanrasset,Tindouf.

  • In the wilaya the Highlands, the regions to which are applied the specific advantages are:


 I-  All the municipalities of the following wilaya : Batna; Djelfa; El Bayadh; Khenchela; M'sila; Nâama; Saida; Tébessa; Tiaret.
     
 II- The following municipalities:

  •  In the wilaya of Bouira: Bordj Okhriss; Dechmia; Dirah; El hakimia; Hadjra Ezargua; Maamoura; Mezdour; Ridane; Sour El Ghozlane; Taguedite.

  •  In the wilaya of Bordj Bou Arreridj: Al yachir; Belimour; Bordj Bou Arreridj; El Ach; El Anaceur; El hamadia; El Ksour; Rabta.

  •  In the wilaya of Medea: Ain Boucif; Ain Ouksir; Aziz; Bouaichoune; Boughzoul; Chabounia; Chelalet El Adhaoura; Cheniguel; Derrag; Djouab; El Ouinet; Kef Lakhdar; Ksar El Boukhari;  Meftah; Oum El Djallil; Ouled Maaref;  Saneg; Sidi Damed; Sidi Zahar; Tafraout.

  • In the wilaya of Mila: El Mechira; Oued Khalouf; Tadjenanet.

  • In the Wilaya of Oum El Bouaghi: Ain El Beida; Ain Zitoun; Behir Chergui; Berriche; Dhala; El belala; El Djazia; El Fdjoudj Boughrara Saoudi; Fkirina; Meskiana; Oued Nini; Rahia; Zorg.

  • In the Wilaya of Sétif : Ain Azel; Ain Lahdjar; Ain Oulmane; Beida Bordj; Boutaleb; El Oueldja; Hamma; Hammam Soukhna; Ouled Si Ahmed; Ouled Tebben; Rasfa; Salah Bey; Tella; Taya.

  • In the Wilaya of Sidi Bel  Abbes: Ain Tidamine; Benachiba Chelia; Bir El Hammam; Chetouane Belaila; Dhaya; El Hacaiba; Hassi Dahou; Marhoum; Mcid; Merine; Mezaourou; Moulay Slissen; Oued Sbaa; Oued Sefioun; Oued Taourira; Ras El Ma; Redjem Demouche; Sidi Ali Ben Youb; Sidi Chaib; Tafissour; Taoudmout; Teghalimet; Telagh; Tenira.

  • In the wilaya of Souk Ahras: Bir Bouhouche; Drea; Mdaourouche; Oum El Adhaim; Oued Kebrit; Safel El Ouidane; Sidi Fredj; Terraghelet; Taoura.

  • In the wilaya of Tlemcen: Ain Ghoraba; Ain Tallout; Azails; Béni Smiel; Béni Snous; Béni Bahdel; Béni Boussaid; El Aricha; El Bouihi; Elgor; Sebdou; Sidi Djilali.

  • In the wilaya of Tïssemssilt: Ammari; Bordj Emir Abdelkader; Khmisti; Layoune; Maacem; Ouled Bessem; Sidi Abed; Theniet El Had; Tissemssilt.

How to obtain the advantages ?

A statement of investment and an application for benefits forms must be downloaded from the website ANDI: www.andi.dz and informed by the investor

These forms duly filled are deposited to the territorially competent one stop shop, with a valued and quantitative list of goods and services to be acquired.

What are the tax incentives for export?

The main tax advantages granted to exporters are:

Exemptions relating to Direct Taxes and assimilated taxes:

Exemption from Tax on Professional Activity (TAP)

Is not included in the turnover used as the basis for calculating the tax on professional activity: the amount of sales operations, transportation or brokering that deal with objects or goods intended to direct  export.

Exemption from the Corporate Income Tax (IBS)

Exemption from IBS and deletions from the condition of reinvestment of their profits or income, for sales operations and services intended for exports.

These exemptions are granted to the pro rata to the turnover in foreign currencies. The benefit of these provisions is subject to the submission by the companies, to the tax services, a document certifying the payment of foreign exchange earnings in a bank domiciled in Algeria.

Operations of land, sea and air transport, reinsurance and banks are not affected by the exemption.

Exemption of Tax on the Turnover:

Exemption of the VAT

The VAT exemption for operations of goods sale, directed at the export, under some conditions.

Purchase exempted from VAT

Exporters can benefit from value added tax exemption purchasing, exemption from VAT for purchases or imports of goods made by exporters, intended either for export or re-export, or to be incorporated in the manufacture, composition, conditioning or product packaging intended for export as well as services directly related to the export operation.

Refunds of VAT

The VAT refund can be made for export transactions of goods, works and services or for delivery of products for all goods and services for which the exemption to purchase is authorized

Peut-on cumuler les avantages de différents dispositifs de soutien ?

 

Les avantages octroyés par les différents dispositifs de soutien à l’investissement ne sont pas cumulables, l’investisseur bénéficie de l’incitation la plus avantageuse.

 

 

 

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