Voluntary Tax Regularization Draws Significant Operator Participation

Structures under Algeria's General Tax Directorate (DGI), including tax offices and centers, are observing a strong influx of economic operators. These individuals and entities are seeking to benefit from the exceptional voluntary tax regularization and debt settlement provisions outlined in Articles 93 and 122 of the 2026 Finance Law. This government initiative, which became effective earlier this year, seeks to streamline fiscal compliance and integrate economic actors into the formal sector.

The voluntary regularization measure allows both individuals and legal entities to declare previously undeclared situations by paying a flat tax rate of 8%, without incurring penalties or facing prosecution. This provision specifically targets those not yet registered with the tax administration or who have previously failed to declare and meet their fiscal obligations. Additionally, the new law addresses tax debts, offering total cancellation for debts recorded in 2011 and prior years. For debts accrued between 2012 and December 31, 2025, a 30% reduction in the principal amount due, along with the cancellation of all associated penalties and surcharges, is available, provided the remaining balance is settled by December 31, 2026, either in a single payment or installments.

Mounir Didoune, Director of Public Relations and Communication at the DGI, highlighted the