The 2025 Finance Law (LF 2025), signed by President Abdelmadjid Tebboune on November 24 and published in the Official Journal on December 29, introduces significant reforms affecting various sectors, from tobacco manufacturing to taxation and vehicle imports.
Tobacco Sector Taxation and Regulations
LF 2025 imposes new taxes on tobacco manufacturers, including:
• 20% additional tax on profits for manufacturers of chewing and snuff tobacco.
• 31% additional tax on profits for manufacturers of smoking tobacco, including e-cigarettes and hookahs.
The law limits tobacco product distribution to Algerian nationals or entities fully owned by Algerians domiciled in Algeria. Distributors must also obtain authorization from the General Tax Directorate.
Updates to the Simplified Tax Regime (IFU)
The law revises the eligibility criteria for the single flat-rate tax (IFU). Individuals or cooperatives with an annual turnover below 8 million DZD are subject to the IFU unless they opt for a real-profit or simplified professional tax regime. However, 11 activities are excluded, including:
• Alcohol retail.
• Catering services.
• Vehicle and equipment rentals.
• Travel and advertising agencies.
Electricity and Gas Fixed Charges
LF 2025 introduces fixed charges for domestic electricity consumers:
• 25 DZD for consumption between 70-190 kWh.
• 100 DZD for consumption between 190-390 kWh.
• 200 DZD for consumption above 390 kWh.
Vehicle Importation and Restrictions
The law permits the import of used cars under strict conditions. Imported vehicles are non-transferable for 36 months after customs clearance unless the fiscal advantage granted is reimbursed as follows:
• 100% reimbursement if sold within 12 months.
• 66% reimbursement if sold within 12-24 months.
• 33% reimbursement if sold within 24-36 months.
• No reimbursement required if sold after 36 months.
Tax Exemptions on Essential Imports
The law exempts frozen white meat imports and live cattle imports for slaughter from VAT and applies a reduced 5% customs duty from January 8, 2024, to December 31, 2025.
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