DoubleTaxationTaxes on salary: Algeria preliminary data
How much income tax and social contributions are paid on a salary in Algeria, what a sole proprietor and a company pay, and which special regimes exist. Preliminary data.
Preliminary data: headline rates from official sources and bulletins of international organisations, without reliefs or special rules; being refined.
Calculation for a gross salary of €60,000 per year
| Gross salary | DZD 9,111,992 ≈ €60,000 |
|---|---|
| Income tax | DZD 2,933,597 ≈ €19,317 |
| Employee contributions | DZD 820,079 ≈ €5,400 |
| Take-home pay | DZD 5,358,316 ≈ €35,283 |
| Employer contributions and payroll taxes | DZD 2,277,998 ≈ €15,000 |
| Employer's labour cost | DZD 11,389,990 ≈ €75,000 |
Only some of the country's direct taxes and levies are counted: income tax on wages and compulsory contributions. Not counted: property and real-estate taxes; taxes on dividends, interest and other investment income; inheritance and gift taxes; indirect taxes such as VAT, excise and customs duties.
Taxes for sole proprietors and companies
Tax and contributions on the profit for a year; expenses are 10% of revenue, the company pays its profit out to the owner. Reliefs and local taxes are not included.
| Annual revenue | €30,000 DZD 4,555,996 | €60,000 DZD 9,111,992 | €120,000 DZD 18,223,984 |
|---|---|---|---|
| Sole proprietor | DZD 1,812,598 44.2 % | DZD 3,280,678 40.0 % | DZD 6,150,955 37.5 % |
| Company | DZD 1,369,532 33.4 % | DZD 2,739,065 33.4 % | DZD 5,478,130 33.4 % |
| Sole proprietor · Impôt forfaitaire unique (IFU) — production et vente de biens | DZD 227,800 5.6 % | above the regime's limit | above the regime's limit |
| Sole proprietor · Impôt forfaitaire unique (IFU) — autres activités | DZD 546,720 13.3 % | above the regime's limit | above the regime's limit |
| Sole proprietor · Impôt forfaitaire unique — statut d'auto-entrepreneur | DZD 22,780 0.6 % | DZD 45,560 0.6 % | DZD 91,120 0.6 % |
Special tax regimes
Additional IRG abatement for retirees of the general scheme and disabled workers
For pensioners
Who: Retired workers of the general scheme and workers with motor, mental, visual or hearing disabilities.
Monthly pensions/salaries above DA 30,000 and below DA 42,500 get an extra reduction of IRG: IRG = IRG after the 40% abatement x 93/61 - 81,213/41 (not cumulative with the general second abatement). Income up to DA 30,000 a month is fully exempt for everyone.
Legal basis: Code des impôts directs et taxes assimilées, art. 104-II-3 (as amended by Loi de finances 2022, art. 31)
Tax residence
The tax residence check does not cover Algeria yet.
Assumptions
- Calculated with the OECD Taxing Wages methodology: income tax including local taxes plus employee social security; single person without children, tax year 2026, ECB rate of 2 January 2026.
- Exchange rate: 1 EUR = 151.866536 DZD (IMF — representative exchange rate for the Algerian dinar, 31 Dec 2025 (2 Jan 2026 not reported; 5 Jan 2026 = 129.788). Bank of Algeria site not reachable, 2025-12-31) ↗
Sources
- Journal officiel de la République algérienne n° 100 (30 Dec 2021) — Loi de finances 2022, art. 31 (CIDTA art. 104 scale and salary rules), art. 46 (IBS), art. 73 (IFU)
- US SSA — Social Security Programs Throughout the World: Africa, 2019 — Algeria
- IMF — Representative exchange rates, December 2025
- Journal officiel n° 78 (31 Dec 2014) — Loi de finances 2015, art. 13 (CIDTA art. 282 sexies IFU rates)
- Journal officiel n° 86 (2023) — Loi n° 23-22 du 24 décembre 2023 (LF 2024), arts. 17-18 (IFU scope, auto-entrepreneur 0.5%)
- Journal officiel n° 84 (26 Dec 2024) — Loi de finances 2025, arts. 8, 22 (CIDTA art. 104, IFU DA 8m threshold)
- Journal officiel n° 88 (31 Dec 2025) — Loi n° 25-17 du 14 décembre 2025 portant loi de finances pour 2026, art. 11 (dividend withholding 10%)
Data checked: 2026-11-08. An indicative calculation for a typical case. Not tax advice.