Algeria: investors rejecting reinvestment must pay fines

The Algerian government imposed on foreign and local investors to reinvest a share of their profits in local markets as a main condition to benefit from tax exemption.

• According to a decree from taxes law, foreign investors will have 4 years starting from 2008 for reinvestment. Otherwise, any tax exemption will be taken in consideration and a 30 percent tax fine will be imposed.
• The decree which was published in the latest number of the Official Journal doesn’t make a difference between foreign and Algerian investors neither energy sector nor other ones.
• “The ones in charge of taxes who benefit from exemption or reduction must reinvest a share from profits within four years,” said the decree.