Parliament Reviews Finance Law for Economic Diversification
Algeria's 2027 Finance Law project introduces extensive measures to support productive investment and diversify the national economy. The initiative aims to stimulate growth and reduce reliance on a single sector through institutional reforms and various tax and customs incentives.
The 2027 Finance Law project, which has been submitted to the National People's Assembly for consideration, introduces new measures aimed at bolstering productive investment and diversifying the national economy. This legislative effort seeks to stimulate economic growth across various sectors and decrease the nation's dependence on a single economic resource, a strategic move for long-term stability and development.
Key proposals within the project include a reorganization of the institutional framework governing investment, which will establish three dedicated bodies: the National Agency for Investment Promotion, the National Investment Council, and the Single Investment Desk. Furthermore, the law suggests capping registration fees for capital increases in sole proprietorships and limited liability companies. Incentives for certified "business incubator" startups are also featured, extending tax exemptions on corporate profits and total income tax to five years, and granting a reduced customs duty rate of 5% on imported equipment essential for their investments. Investment funds formed under international agreements are set to benefit from a 10-year exemption from corporate profits tax from the commencement of their activities.
The project extends its focus to sector-specific support, particularly in green economy initiatives. Companies investing in green hydrogen development, afforestation, reforestation, and renewable energy projects will see an increase in the cap on deductible expenses for tax purposes, from 5% to 10%. The agricultural sector is also targeted with a reduced Value Added Tax rate of 9% on critical farming materials, including perforated seedling trays, plastic growing pots, drip irrigation pipes, and ground membranes. Additionally, the law introduces measures designed to enhance tax compliance, foster transparency, and combat tax fraud, alongside providing customs facilities such as granting an "authorized exporter" status to frequent exporters, enabling them to self-certify preferential origin for goods under international trade agreements.
