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21 February 2018 Algeria's Tax Authority clarifies services export definition for CIT exemption purposes On 8 February 2018, Algeria's Tax Directorate (DGI) published a Circular The activity of services export is now defined as "a service rendered from Algeria that is intended to be consumed in a foreign country, by a beneficiary, either in that same foreign country or in another foreign country." Consequently, and in order to benefit from the CIT exemption, the transaction must generate revenue in a foreign currency. It also cannot relate to a service rendered or exploited in Algeria. This clarification is likely to impact a number of companies which have been working in Algeria under a model that based the exemption on the foreign currency revenue even if the services were not actually "exported" and related to local transactions, most notably in the life & sciences, engineering and advisory sectors. Ernst & Young Tax & Legal Algérie, Head of Africa desk – Maghreb and Francophone Africa and Head of Algeria Tax Practice, Alger Document ID: 2018-5306 |
