The Finance law for 2025 was published in the Official Journal this Sunday, December 29. The text was signed by the President of the Republic on November 24, after being adopted by both houses of Parliament.
The Finance Law for 2025 includes several measures including skimming the profits of tobacco manufacturing companies based in Algeria. Manufacturers of snuff and/or chewing tobacco must pay an additional tax on their profits of 20%. For manufacturers of smoking tobacco, including electronic cigarettes and hookahs, this rate rises to 31%.
The LF 2025 limits the exercise of the activity of distribution of tobacco products to natural persons of “Algerian nationality having their tax domicile in Algeria” and to companies under “Algerian law, whose partners or shareholders are of Algerian nationality having their domicile tax in Algeria.
“The exercise of the tobacco distribution activity is subject to obtaining an approval issued by the Director General of Taxes, after subscribing to specifications,” specifies the text.
Finance law 2025: what changes for the IFU
The LF 2025 specifies that natural persons carrying out an industrial, commercial, non-commercial or artisanal activity, as well as traditional arts and crafts cooperatives and professional civil companies, whose annual turnover does not exceed eight million dinars (8,000,000 DA), with the exception of those having opted for the tax regime according to real profit or the simplified regime of non-commercial professions, are “subject to the regime of the single flat-rate tax (IFU)”.
The Finance Law for 2025 excludes eleven activities from the IFU: alcoholic beverage outlets, companies collecting, processing and distributing leaf tobacco, caterers and catering, rental of rooms for celebrating holidays or organizing meetings , meetings and seminars; retail trade carried out in supermarkets, vehicle rental; rental of machinery and equipment, travel and tourism agencies, advertising and communication agencies, various training and education and general agents and insurance brokers.
LF 2025 introduces a “fixed duty payable by each domestic subscriber of electricity and gas distribution concession companies. It is set at 25 DA when the electricity consumption billed is greater than 70 kWh and less than or equal to 190 kWh; 100 DA when the billed electricity consumption is greater than 190 kWh and less than or equal to 390 kWh and 200 DA) when the billed electricity consumption is greater than 390 kWh.
Vehicles less than 3 years old are non-transferable, except in 3 cases
The FL 2025 exempts from value added tax and subjects “import operations of frozen white meats” to the reduced rate of 5% of customs duties, from January 8, 2024 to December 31, 2025. Import operations of live cattle and sheep intended for slaughter benefit from the same measure.
The 2025 Finance Law authorizes customs clearance of used passenger vehicles. The text specifies that these vehicles are “non-transferable for a period of 36 months, from the date of their customs clearance”.
However, used vehicles acquired by the beneficiaries “can be sold after repayment of the tax advantage granted to them”, according to the following cases:
— Repayment of the entire tax advantage granted, when the vehicle is sold within a period of less than or equal to 12 months from its customs clearance date;
— Repayment of sixty-six percent (66%) of the tax advantage granted, when the vehicle is sold within a period greater than 12 months and less than or equal to 24 months, from its customs clearance date;
— Repayment of thirty-three percent (33%) of the tax advantage granted, when the vehicle is sold within a period greater than 24 months and less than or equal to 36 months, from its customs clearance date;
— No repayment of the tax advantage granted is required, when the vehicle is sold after 36 months, from its customs clearance date.
