Fiscal Measures in PLF 2027 Aim to Spur Productive Investment

The Project Law of Finances (PLF) 2027 in Algeria introduces new fiscal measures intended to stimulate productive investment across the nation. This strategic framework seeks to encourage economic activity through a reconfigured institutional structure. This reorganization centers on three key entities: the Algerian Investment Promotion Agency (AAPI), the National Investment Fund (FNI), and the Single Window for Investment, aiming to streamline and support investment processes.

Among the specific provisions to encourage productive investment, the PLF 2027 extends benefits for designated incubator companies. These firms will receive a five-year exemption from corporate profits tax (IBS) and global income tax (IRG). Additionally, they will benefit from a reduced customs duty rate of five percent on imported equipment. The law also grants a ten-year fiscal exemption to investment funds established under international agreements, further attracting capital.

The draft law outlines additional incentives for strategic sectors. It proposes an increase in the tax deductibility rate for expenditures related to green hydrogen, reforestation, and renewable energies, raising it from five to ten percent. Furthermore, a specific fiscal regime is being established for mining activities. Investments in the production, transport, and distribution of electricity and gas will continue to benefit from value-added tax (TVA) exemption, reinforcing support for essential infrastructure.

These comprehensive fiscal measures within the PLF 2027 reflect Algeria's broader economic objectives. The law aims to combine budgetary rigor with economic diversification and fiscal justice. Through these efforts, Algeria intends to lay the foundations for sustainable and shared national growth, leveraging these new policies to strengthen its economic landscape.