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Algeria IESPC Accounting Contest study materials
Algeria IESPC Accounting Contest study resources

Algeria IESPC Accounting Contest: Taxation - Algerian tax system: IBS, IRG, TVA and procedure

Algeria IESPC Accounting Contest · Work through your exam, one topic at a time.

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Taxation - Algerian tax system: IBS, IRG, TVA and procedure

This domain tests the main levies of the Algerian tax system and, above all, the mechanics: computing the base, applying the rate, deducting what is deductible, and filing on time. Core items are the impôt sur les bénéfices des sociétés (IBS), the impôt sur le revenu global (IRG) including salaries, TVA, the impôt forfaitaire unique (IFU) for small businesses, registration and stamp duties, and the local property taxes.

Direct taxation

  • IBS applies to company profits. The rate structure is set each year by the Loi de Finances: a reduced rate for goods-producing activities and a standard rate for other activities (commonly cited as 19% and 23%). Always apply the rate of the exam year.
  • A minimum d'imposition based on turnover (0.5%, with a floor fixed by the finance law) applies when it exceeds the profit-based tax.
  • IBS is paid through acomptes provisionnels during the year and regularised with the annual declaration, filed by 30 April of the following year.
  • IRG covers salaries, professional income and investment income; the employer withholds monthly.

Indirect taxation

  • TVA: standard rate 19%, reduced rate 9% for listed goods and services. TVA collectée minus TVA déductible on purchases and expenses gives the net due.
  • Deductibility depends on formal conditions: a compliant invoice, the supplier's identification, and a link to the taxable activity. VAT on non-compliant invoices is not deductible.
  • Monthly declarations are filed through the G50; the IFU applies to small businesses below the turnover threshold, at reduced rates for production and higher rates for services.

Worked example

Turnover 60,000,000 DA HT, taxable profit 10,000,000 DA, purchases 7,000,000 DA HT all at 19%. IBS at 23% = 2,300,000 DA. Minimum d'imposition = 0.5% × 60,000,000 = 300,000 DA; the higher figure applies, so 2,300,000 DA. TVA: output 60,000,000 × 19% = 11,400,000 DA; deductible input 7,000,000 × 19% = 1,330,000 DA; net due = 10,070,000 DA.

Traps

  • Netting TVA collectée and déductible across two different periods.
  • Deducting VAT without an invoice meeting the formal requirements.
  • Treating the acomptes as the final liability and missing the 30 April regularisation.
  • Applying the IBS rate remembered from an older finance law.