At the beginning of next year, Algeria will begin a new tax on "Wealth profit"

Algeria is expected to start introducing a “wealth tax” early next year, which will include income from wealth and property, that is, income that will be investigated and assessed by tax investigators.

The bill on finances, according to which the tax will be levied, will give investigators additional powers.

The Algerian newspaper Al-Shoruk stated that one of the obstacles to delaying the implementation of the wealth tax in past years, which was due to be approved in early 2020, as contained in the Finance Law at the time, is the lack of digitalization expected after receiving 76 new tax centers and receiving facilities to manage the collection under construction. The inauguration of the National Government Data Center and the completion of the digitization process that the implementation of the wealth tax will be started according to the new concept starting from 2023.

The newspaper quoted sources present at the meeting on the matter that “the application of the property tax will be different this time around, calculating the property tax as well as the income tax, as the Tax Directorate will estimate the amount of expected income.” for any property or property, and not just the value of that property, for example, a Commercial store where the taxpayer pays tax on the property in that store, as well as on that store’s profits.

Sources said Amal Abdel Latif, director general of taxes at the Treasury Department, confirmed that tax investigators would have new powers that would allow them to investigate the owners of wealth, the amount of wealth and the value of profits generated. from there, in agreement with official bodies such as banks, the real estate registry office and other relevant departments authorized to search for property, from during the census of the rich and inventory of their wealth and inventory even of the profits from this wealth.

The Finance Bill for 2023, which is currently under consideration in Parliament, amends and supplements the provisions of Article 21 of the Tax Procedure Code, which states that “agents of the fiscal administration may initiate – an in-depth study of the comprehensive tax situation of individuals who are residence in Algeria, in respect of gross income tax and property tax, whether or not they have obligations related to these two taxes.

The Director General of Taxes stated that the 2023 draft Finance Act includes several fiscal measures to encourage and support investment as part of an examination of the tax provisions contained in the draft, which means that this text proposes tax exemptions for fishing and aquaculture cooperatives and their approved unions. , from corporate income tax, and establishing a framework for establishing a tax system for the self-employed.

Source: Al-Shoruk, Algeria.