ALGERIAN INVESTMENT PROMOTION LAW

CHAPTER 1: SCOPE

 Article 1: The purpose of this law is to establish the regime applicable to national and foreign investments made in the economic activities of production of goods and services.

 Art. 2. It is understood by investment, within the meaning of this law:

1- Acquisitions of assets within the framework of the creation of new activities, extension of production and / or rehabilitation capacities;

2. Investments in the capital of a company.

Art. 3. The investments covered by the provisions of this law shall be made in compliance with the laws and regulations in force, in particular those relating to the protection of the environment, to regulated activities and professions and, in general, to the 'exercise of economic activities. Article.

Art 4: For the benefit of the advantages provided for by the provisions of this law, investments must be registered with the national investment development agency referred to in article prior to their realization. 26 below. The procedures for recording investments are set by regulation.

CHAPTER 2: THE BENEFITS

Section 1: General provisions

 Art.5: Benefit from the provisions of this chapter, investments for the creation, extension of production and / or rehabilitation capacities relating to activities and goods not subject to exclusion from the benefits.

 The lists of activities, services and goods excluded from the benefits below, referred to as negative lists, are set by regulation.

 In the event of the exercise of a mixed activity or of several activities, only those eligible, give right to the advantages of this law. For this purpose, the beneficiary keeps accounts making it possible to isolate the figures corresponding to the eligible activities.

 The types of investments mentioned in paragraph 1 above, the methods of application of the advantages to investments in the extension of production capacity and / or rehabilitation as well as the threshold amounts required for investments other than creation, for access to benefits are set by regulation.

 Art. 6: Are considered as investments, within the meaning of article 2 above, and eligible for the advantages, the goods, including renovated, constituting external contributions in kind entering within the framework of operations of relocation of activities from from abroad.

The goods referred to in paragraph 1 above, are exempted from the formalities of foreign trade and bank domiciliation.

Are also considered as investments eligible for benefits, goods subject to the exercise of the purchase option, by the lessee credit, in the context of international leasing on the condition that these goods are introduced, on the national territory. , in new condition. The terms of application of this article are set by regulation.

Art. 7: The advantages provided for by this law include:

 - the advantages common to all eligible investments,

- additional advantages for the benefit of privileged and / or job-creating activities,

- exceptional advantages for the benefit of investments of particular interest to the national economy.

 Art. 8: Notwithstanding the provisions of Ordinance No. 08-04 of September 1, 2008, amended and supplemented, referred to above and subject to the specific provisions applicable to the investments referred to in Articles 14 and 17 below, the investments registered in accordance with in article 4 above, not appearing on the negative lists, benefit as of right and automatically, of the advantages of realization envisaged by the present law.

 The registration materialized by a certificate issued, forthwith, authorizing the investor to avail himself, from all the administrations and organizations concerned, of the advantages to which he is entitled, is carried out in accordance with Article 4 above.

The terms of application of this article are set by regulation.

Art. 9: The actual consumption of the realization benefits relating to the registered investment is subject to:

 - registration in the trade register, - possession of the tax identification number,

 - submission to the real tax regime.

The terms of application of this article are, as necessary, fixed by regulation.

Art. 10: The benefit of the operating advantages provided for by this law takes place on the basis of a report of the start of operation established, at the investor's diligence, by the tax services with territorial jurisdiction.

 The terms of application of this article are set by regulation.

 Art. 11: Any investor esteem prejudiced, in respect of the benefit of the advantages, by an administration or a body responsible for the implementation of this law or being the subject of a withdrawal or forfeiture procedure initiated in application of article 34 here- below, has a right of appeal to a committee whose composition, organization and operation are set by regulation, without prejudice to his right of appeal to the competent court.

 Section 2: Benefits common to eligible investments

 Art. 12: In addition to the fiscal, parafiscal and customs incentives provided for by common law, the investments concerned by the advantages defined in article 2 above, benefit from:

1- Under the implementation phase: as referred to in Article 20 below, the following advantages:

        a) exemption from customs duties for goods imported and entering directly into the realization of the investment,

       b) VAT exemption for goods and services imported or acquired locally entering directly into the realization of the investment,

      c) exemption from property transfer tax and land registration tax, for all real estate acquisitions made as part of the investment concerned,

      d) exemption from registration fees, land registration tax, as well as state remuneration relating to concessions of built and unbuilt real estate intended for the realization of investment projects.

These advantages apply for the minimum duration of the concession granted,

     e) 90% reduction on the amount of the annual rental fee set by the estate services during the period of the investment,

    f) exemption from the property tax on real estate properties falling within the framework of the investment, for a period of ten (10) years, from the date of acquisition, g) exemption from registration fees on deeds constituting companies and capital increases.

 2- Under the operating phase: after confirmation of entry into operation, established on the basis of a report, by the tax services at the behest of the investor, for a period of three (3) years, the following benefits:

 a) exemption from corporate income tax (IBS),

b) exemption from the tax on professional activity (TAP),

 c) 50% reduction on the amount of the annual rental fee set by the estate services.

Art. 13: Investments made in localities whose list is set by regulation, falling within the South and the Highlands as well as in any other area whose development requires a particular contribution from the State, benefit from:

1. Under the implementation phase:

 in addition to the advantages referred to in paragraph 1, sub-paragraphs a, b, c, d, f and g of article 12 above:

a- full or partial support by the State, after assessment by the Agency of expenditure for the infrastructure works necessary for the realization of the investment; The terms of application of subparagraph (a) above are set by regulation.

b- reduction of the amount of the annual rental fee set by the estate services under the land concession for the implementation of investment projects:

 - to the symbolic dinar per square meter (m²) for a period of ten (10) years and 50% of the amount of the state fee beyond this period for investments established 6 in localities falling within the Hauts Plateaux and other areas whose development requires a particular contribution from the State;

- to the symbolic dinar per square meter (m2) for a period of fifteen (15) years and 50% of the amount of the state fee beyond this period for investment projects located in the wilayas of the Great South.

2. Under the operating phase:

 of the benefits provided for in paragraph 2, subparagraphs a and b of article 12 above, for a period of ten (10) years from the date of entry into operation, fixed by a report established by the tax services, at the investor's request.

 Art. 14: Notwithstanding the provisions of article 8 above, the granting of advantages to investments the amount of which is equal to or greater than five billion dinars (5,000,000,000 DA) is subject to the prior agreement of the National Council of the Investment referred to in article 18 of Ordinance 01-03 of August 20, 2001, amended and supplemented, referred to above. The terms of application of this article are set by regulation.

Art. 18 of Ordinance 01-03 of August 20, 2001 relating to the development of investment, amended and supplemented by Ordinance 06-08 of July 15, 2006.

 A Con National Investment Council hereinafter referred to as "the Council", placed under the authority and the chairmanship of the Head of Government.

 The Board is responsible for matters related to the investment strategy and the investment support policy, the approval of the agreements provided for in Article 12 above and, in general, all questions related to the implementation of the provisions of this ordinance.

 The composition, operation and powers of the National Investment Council are set by regulation.

Section 3: Additional advantages for the benefit of privileged and / or job-creating activities

Art.15: The advantages defined in articles 12 and 13 above, are not exclusive of the particular fiscal and financial incentives instituted, by the legislation in force, in favor of tourist activities, industrial activities and agricultural activities.

The coexistence of advantages of the same nature instituted by the legislation in force, with those provided for by this law, does not give rise to cumulative application of the advantages considered.

 In this situation, the investor benefits from the most advantageous incentive.

Art. 16: The duration of the operating advantages granted for the benefit of investments made outside the zones referred to in article 13 above is extended from three (3) to five (5) years when they give rise to the creation more than one hundred and 100 permanent jobs during the period from the date of registration of the investment until the completion of the first year of the operating phase at the latest.

 The terms of application of this article are set by regulation.

 Section 4: Exceptional advantages for the benefit of investments of particular interest to the national economy

 Art. 17: Benefit from exceptional advantages established by agreement negotiated between the investor and the Agency acting on behalf of the State, with investments of particular interest to the national economy.

The agreement is concluded by the Agency, after approval by the National Investment Council. The investment qualification criteria referred to in paragraph 1 above, as well as the composition and processing procedures for the application for the benefit of exceptional benefits are set by regulation.

Art. 18: 1- The exceptional benefits referred to in Article 17 above may include:

a) an extension of the duration of the operating benefits referred to in Article 12 above for a period of up to ten (10) years,

b) on the granting, in accordance with the legislation in force, of exemptions or reduction of customs duties, taxes, duties and all other charges of a fiscal nature, of subsidies, aids or financial support, as well as any facilities likely to be granted, in respect of the performance for the period agreed pursuant to Article 20 below.

2- Repealed by article 5 of the LFC 2018.

3-The realization advantages provided for in this article, may, after agreement of the National Investment Council, according to the terms and conditions set by regulation, be transferred to the co-contractors of the beneficiary investor, responsible for the realization of the investment, on behalf of the latter.

 The methods for setting the level and nature of the benefits provided for in this article are determined on the basis of an evaluation grid set by regulation.

 Art. 19: The advantages referred to in article 18 above are in addition to those likely to be obtained under articles 12, 13, 15 and 16 above, under the conditions provided for in article 8 above. .

 CHAPTER 3: DEADLINE

 Art. 20: The investments referred to in Articles 1 and 2 above must be made within a period previously agreed with the agency.

 The completion period begins to run from the date of registration provided for in Article 4 above, this period is stated on the certificate of registration referred to in Article 8 above.

The completion period may be extended in accordance with terms set by regulation.

CHAPTER 4: GUARANTEES GRANTED TO INVESTMENTS

Art. 21: Subject to bilateral, regional and multilateral conventions signed by the Algerian State, foreign natural and legal persons receive fair and equitable treatment with regard to the rights and obligations attached to their investments.

Art. 22: Revisions or repeals relating to this law which may occur in the future do not apply to the investment made under this law unless the investor expressly requests it.

 Art. 23: In addition to the rules governing expropriation, investments made may not, except in the cases provided for by the legislation in force, obey requisition jet by administrative route. The requisition and expropriation give rise to fair and equitable compensation.

 Art. 24: Any dispute arising between the foreign investor and the Algerian State, resulting from the act of the investor or from a measure taken by the Algerian State against him, will be submitted to the Algerian courts with territorial jurisdiction. except bilateral or multilateral agreements concluded by the Algerian State, relating to conciliation and arbitration or agreement with the investor stipulating an arbitration clause allowing the parties to agree to a compromise by ad hoc arbitration.

Art. 25: Investments made from capital contributions in the form of cash, imported through the banking channel and denominated in a freely convertible currency regularly listed by the Bank of Algeria and ceded to the latter, the amount of which is equal to or greater at minimum thresholds, determined on the basis of the overall cost of the project in accordance with the terms set by regulation, benefit from the guarantee of transfer of the invested capital and the resulting income.

 Capital reinvestments of profits and dividends declared transferable in accordance with the laws and regulations in force, are admitted as external contributions.

 The transfer guarantee as well as the minimum thresholds referred to in paragraph 1 above apply to contributions in kind, made in the forms provided for by the legislation in force, provided that they are of external origin and that they are subject to a valuation, in accordance with the rules and procedures governing the incorporation of companies.

The transfer guarantee provided for in paragraph 1 above also relates to the real proceeds net of the sale and liquidation of investments of foreign origin, even if their amount is greater than the capital initially invested.

CHAPTER 5: INVESTMENT BODIES

Art. 26: The national investment development agency, called, by abbreviation ANDI, created by article 6 of ordinance 01-03 of August 20, 2001, modified and supplemented, referred to above, is a public establishment administrative, with legal personality and financial autonomy, in charge, in coordination with the administrations and bodies concerned of:

- the registration of investments, - the promotion of investments in Algeria and abroad, - the promotion of territorial opportunities and potentialities - the facilitation of business practice, monitoring of the constitution of companies and the implementation of projects ,

 - assistance, help and support for investors, - information and awareness of the business community,

- the qualification of the projects referred to in Article 17 above, their evaluation and the establishment of the investment agreement to be submitted for approval to the National Investment Council. - the contribution to the management, in accordance with the legislation in force, of investment support expenditure,

- the management of the portfolio of projects prior to this law as well as those referred to in Article 14 above, The organization and functioning of the agency are set by regulation.

The agency receives for the processing of investment files, both by its own services and by the management centers, referred to below, a fee, the amount and collection methods of which are set by regulation.

 Art 6 of Ordinance 01-03 of August 20, 2001 relating to the development of investment, amended and supplemented by Ordinance 06-08 of July 15, 2006.

 A national investment development agency hereinafter referred to as the agency is hereby established.

 Art. 22 of Ordinance 01-03 of August 20, 2001 relating to the development of investment, amended and supplemented.

The headquarters of the agency is in Algiers. The agency has decentralized structures at the local level. It can create representative offices abroad. The number and location of local structures and offices abroad are set by regulation.

Art. 27: Four (4) centers have been created at the Agency, housing all the services authorized to provide the services necessary for the creation of businesses, their support, their development and the implementation of projects. :

- the benefits management center responsible for managing, to the exclusion of those entrusted to the Agency, the various benefits and incentives put in place, for the benefit of the investment, by the legislation in force,

- the formalities fulfillment center responsible for providing services related to the formalities constituting companies and the implementation of projects,

 - the business creation support center responsible for helping and supporting the creation and development of businesses,

 - the territorial promotion center responsible for ensuring promotion of local opportunities and potential.

The decisions of the members of these centers are opposable to the administrations to which they belong. The powers, organization and operation of these centers are set by regulation.

CHAPTER 6: MISCELLANEOUS PROVISIONS

Art.28: In addition to the advantages provided for by the provisions of this law, investments may benefit from aid and support provided for by the special allocation account number 302-124 entitled 10 “national fund for the upgrading of SMEs, investment support and promotion of industrial competitiveness ”.

 Art. 29: The assets making up the technical capital acquired under advantages, for the purposes of carrying out the activity to which the registered investment relates, may be subject to transfer, subject to authorization issued, as the case may be by the territorially competent agency or benefit management center.

 The buyer agrees with the concerned structure mentioned in the above paragraph, to honor all the obligations taken on by the initial investor and which made it possible to benefit from the said advantages, failing which, these advantages are withdrawn.

 However, and subject to reimbursement, as the case may be, of all or part of the benefits consumed, are subject only to declaration to the Agency or to the territorially competent management center, disposals of isolated assets.

Any transfer without declaration or authorization is considered as a diversion of the preferred destination and liable to the penalties provided, in the specific cases, by customs and tax legislation

. The terms of application of this article are set by regulation.

Art. 30 (article repealed by the provisions of article 52 of the LFC for 2020)

 Art. 31 (article repealed by the provisions of article 52 of the LFC for 2020):

 Art. 32: Investments benefiting from the advantages granted by virtue of this law are monitored during their exemption period. The monitoring carried out by the Agency is carried out through support and assistance to investors as well as the collection of various statistical information on the progress of the project.

The investor is required to provide the Agency with all the information required for the latter to perform the monitoring task entrusted to it. The procedures for collecting information on the progress of projects, the obligations payable by investors under the monitoring task as well as the penalties for failure to comply with the obligations subscribed in return for the benefits granted, are specified by regulation.

 Art. 33: In terms of monitoring, the administrations and organizations concerned by the implementation of the incentive system provided for by this law are responsible for ensuring, in accordance with their powers and during the legal period, the depreciation of property acquired under privileged tax regime to respect, by the investor, of his obligations under the advantages granted. Notwithstanding the above paragraph, and with the exclusion of land granted in the private domain of the State which obey their own rules, the land bases and buildings acquired under privileged tax regime, are subject to the same monitoring for a duration corresponding to the longest depreciation period used for other goods.

Goods imported or acquired locally, under the privileged tax regime provided for by this law, must be, unless the non-transferability is lifted, kept by the investor for a period fixed by regulation.

11 The terms of application of this article are set by regulation.

 Art. 34: In the event of non-compliance with the obligations arising from the application of this law or the commitments made by the investor, all the benefits are withdrawn, without prejudice to the penalties provided for by the legislation in force. Investments falling under the above paragraph are subject, as the case may be, to a decision to withdraw the benefits or to a forfeiture procedure. The terms of application of this article are set by regulation.

CHAPTER 7: TRANSITIONAL AND FINAL PROVISIONS

 Art. 35: The rights acquired by the investor with regard to the advantages and other rights from which he enjoys, by virtue of the legislation prior to this law, instituting measures to encourage investment are maintained.

Investments benefiting from the advantages provided for by the laws relating to the promotion and development of investment prior to this law as well as all subsequent texts, remain governed by the laws under which they were declared, until 'at the end of the term of said benefits.

Art. 36: Pending the establishment of the centers referred to in Article 27 above, the provisions of this law as well as the ets induced by the transition period are taken care of by the decentralized one-stop-shop of the Agency created by ordinance n ° 01-03 of Aouel Joumada Ethania 1422 corresponding to August 20, 2001, modified and supplemented, referred to above, relating to development of investment.

 Art. 37: The provisions of ordinance n ° 01-03 of Aouel Joumada Ethania 1422 corresponding to August 20, 2001, amended and supplemented, referred to above, relating to the development of the investment, are repealed, with the exception of the provisions of articles 6, 18 and 22. Article 55 of Law No. 13-08 of December 30, 2013 on the 2014 finance law is also repealed.