Algeria imposes 50 percent taxes on salaries

The government will raise deduction rate by 50 percent from salaries estimated at more than 108,000 DZ. This comes as part of the Financial Act 2006 and austerity policy.

According to Article 8 of taxes law, deduction rate is fixed at 10 percent for net salary equal or under the minimum wage, 15 percent for net salary which exceeds the minimum wage and is less than its double. A deduction of 20 percent will be imposed on net salaries which exceeds the minimum wage double, equal or less than its triple.

The law fixed 25 percent for net salaries which are 3 times higher than the minimum wage, equal or 4 times less than it. A total of 30 percent is fixed for net salary which are 4 times higher, equal or 5 times less than the minimum wage. The deduction is raised to 40 percent if net salaries is 5 times higher, equal or 6 times less than the minimum wage.

Taxes on unbuilt real estates and agricultural lands

Article 261 fixes 5 percent tax on unbuilt properties located in non-urban areas.

As for urban lands, tax is estimated at 5 percent if area is less or equal to 500 square meter, 7 percent on area which is more than 500 square meters, less or equal 1,000 square meters. A 10 percent tax will be imposed on areas of more than 1,000 square meters.

Taxes on party and meeting rooms

The same law stipulates taxes on renting rooms or areas to organize parties or meetings. Areas located in touristic enterprises and hotels are exempted from taxes.