Tax Incentives Introduced for Investment Funds in 2027 Law
Algeria's 2027 Finance Law (PLF 2027), adopted by the Council of Ministers, will introduce a series of fiscal advantages designed to benefit investment companies and venture capital organizations. These incentives, applicable for a period of 10 years starting January 1, 2027, are intended to stimulate the national economy and foster job creation. The Director General of the Treasury and Accounting at the Ministry of Finance, Hadj Mohamed Sebaa, detailed these measures during an exposition before the Finance and Budget Committee of the National People's Assembly.
The specific advantages include exemptions from the Corporate Profits Tax (IBS) and from registration fees for all subscription, transfer, assignment, and restructuring operations undertaken by these entities. The overarching goals are to encourage investment, provide financial support for startups and small and medium-sized enterprises (SMEs) with a target of reaching 20,000 businesses, and contribute to the diversification of the national economy. These provisions are expected to facilitate the mobilization of capital for productive projects and support the creation and development of economic activities, with anticipated medium- and long-term economic benefits projected to offset the budgetary cost of the exemptions.
Furthermore, these measures aim to establish an incentive tax regime for investment funds created under international conventions, thereby promoting their establishment, growth, and the mobilization of financial resources for national investment. These fiscal advantages are also intended to improve the launch and operational conditions of these funds, enhance their intervention capacity, and facilitate the execution of investment projects in sectors vital to the national economy. In a related development, Algeria's venture capital system recently welcomed a new collective investment fund, the “University Fund for Innovation and Start-ups,” with initial assets exceeding 280 million DA, focusing on innovative enterprises and startups within the national university ecosystem.
