It is expected that Algeria will start at the beginning of next year the application of “wealth tax” to include wealth and property profits, which are the profits that will be reported around and estimated by the investigators.
The Finance Law, which will be followed by case law, will provide investigators more authority.
The absence of digitization, as expected after receiving 76 new tax centres and receiving the facilities for the collection department under completion, has been a hindrance to the wealth tax’s application over the past few years. This tax was supposed to be approved at the start of 2020 as specified in the Finance Law at the time. And the National Center for Governmental Data’s opening, the digitization process’s completion, and that the wealth tax be implemented in accordance with a new vision beginning in 2023.
The application of wealth tax this time will be different by accounting for both the tax on property and the tax on revenues, as the Tax Directorate will estimate the volume of returns expected for any property or property, and not only the value of this property, such as the place Commercial, where the taxpayer pays the wealth tax on this store as well as the profits of this store, according to sources who attended a meeting in this regard.
According to the sources, Amal Abdel Latif, director general of taxes at the ministry of finance, confirmed that the fiscal investigators will have new powers that allow them to look into people’s wealth, the size of their wealth, and the value of the profits they generate in coordination with other relevant directorates and official bodies like banks and real estate registration.
To amend and supplement the provisions of Article 21 of the Tax Procedures Law, which states that “the taxpayers of the tax administration can legislate in the in-depth investigation into the comprehensive fiscal status of natural persons who have a fiscal home in Algeria in relation to For total income tax and wealth tax, whether they have obligations related to these two taxes or not, the Finance Bill for the year 2023 is currently subject to the parliament table.
The Director General of Taxes said that the Finance Law 2023 includes several tax measures to encourage and support investment, within the framework of studying the tax rulings contained in the project, meaning that this text proposes to exempt fishing cooperatives and water education and their approved federations, from the tax on corporate profits, as well as setting a framework To establish a fiscal system for a self -contractor.
Algerian “Al-Shorouk” is the source.
A new tax on “wealth profits” will go into effect in Algeria at the beginning of the next year.
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