Algeria Investment Income Tax Guide 2026

Dividend Taxation — 15% WHT

Dividends paid by Algerian companies are subject to a final withholding tax of 15%. For resident individuals, the 15% WHT is the final tax — the dividend income is not included in the progressive IRG calculation. For non-residents, the 15% WHT is also the final tax, subject to reduction under double tax treaties (often to 5–10%). Dividends paid by Algerian companies to other Algerian companies may be partially or fully exempt from WHT under the participation exemption regime, provided the parent company holds at least 25% of the subsidiary for a minimum of 2 years.

Interest Taxation — 10% WHT

Interest income from Algerian sources is subject to a final withholding tax of 10%. This includes interest on bank deposits, bonds, loans, and other debt instruments. For resident individuals, the 10% WHT is the final tax. For non-residents, the rate may be reduced under double tax treaties. Interest on government bonds and certain qualifying bonds may be exempt from WHT. Interest paid between related companies must comply with arm's length principles and thin capitalisation rules.

Royalty Taxation — 15–24% WHT

Royalties paid to non-residents for the use of intellectual property, patents, trademarks, and know-how in Algeria are subject to withholding tax at rates between 15% and 24%, depending on the type of royalty and applicable treaty. Standard domestic rates are 24% for patents and trademarks, and 15% for copyrights and software. Treaty rates are typically reduced to 5–10%. Resident recipients include royalties in their taxable income and may claim credits for any WHT suffered.

Capital Gains on Shares — 20%

Capital gains realised on the sale of shares in Algerian companies are taxed at a flat rate of 20%. This applies to both resident and non-resident sellers. The gain is calculated as the sale price minus the acquisition cost. Losses may be offset against gains from similar transactions in the same year but cannot be carried forward. Gains on the sale of shares listed on the Algiers Stock Exchange are also subject to the 20% rate.

Tax Treaty Relief

Algeria's double tax treaties generally provide for reduced withholding tax rates on investment income. Typical treaty rates are: dividends 5–15% (depending on shareholding), interest 5–10%, and royalties 5–10%. To claim treaty relief, the non-resident must provide a certificate of tax residence to the Algerian payer or the DGI. The reduced rate is applied at source or claimed as a refund. Failure to provide documentation results in the standard domestic rate being applied.

FAQs

Are dividends subject to social security contributions?

No, dividends are investment income and are not subject to CNAS social security contributions.

Can a resident individual claim a credit for foreign WHT on dividends?

Yes, Algerian residents may claim a foreign tax credit for WHT suffered on foreign investment income, limited to the Algerian tax payable on that income.

Is interest on savings accounts taxed?

Yes, interest on savings accounts is subject to the 10% final withholding tax, deducted by the bank at source.

Are there any exemptions for small investments?

Small dividend and interest amounts are subject to the same WHT rates. No de minimis exemption applies.

Disclaimer

This guide provides general information about Algerian investment income taxation for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Algerian tax advisor for advice specific to your situation. InvestmentKit does not provide tax advice.