Major lines of industrial strategy entailing the strengthening of national industrial potential through incentives for companies, particularly in the private sector, to participate more in the country’s development through the set-up of public support policies to upgrade and modernize those companies, namely in technological, managerial and human resources training terms; facilitation for companies in the form of national preferences for the purpose of market penetration; and creation and development of facilitation and support structures for industrial companies.
Advantages offered on investments: The general orientation of the Algerian investment system can be summarized as follows: the greater the investment’s interest to the national economy, the more significant the advantages it will receive.
These advantages can vary depending on the nature and the location of the investment.
They are organized into three broad schemes: a general scheme for common investment projects located outside targeted development zones, a special development zone scheme for common investment projects located in development zones, and an investment agreement scheme for investment projects of special interest to the national economy.
Advantages under the general scheme
Project planning phase: VAT exemption on non-excluded goods and services, exemption from customs duties on non-excluded imported equipment, and exemption from transfer taxes on real property acquisitions.
Three year exemption from corporate income tax and local business tax.
Advantages under the special development zone scheme
Project planning phase:
VAT exemption on goods and services, exemption from customs duties on imported equipment, exemption from transfer taxes on real property acquisitions, reduced registration fee (0/00) for articles of association and capital increases, and possibility of total or partial coverage by the State of expenditures relating to the infrastructure work that is necessary for the investment.
10 year exemption from corporate income tax, local business tax and property tax, and possibility of other advantages (carry-over of deficits and depreciation/amortization periods).