Algeria Abolishes Controversial Electronic Tax For Startups
The wrath of Algerians, sparked by additional levies on electronic and computer products, has prompted the country’s government, led by President Abdelmadjid Bouteflika, to respond. Consequently, Abdelmadjid Bouteflika has ordered the eradication of taxes on electronic and computer items, as well as the freezing of additional taxes on food products, during a meeting of the council of ministers on February 13.
Indeed, the 2022 finance bill relates to additional taxes on e-commerce purchases, smartphones, and computer products. The new tax review however only applies to purchases made for personal use or for startups.
The tax rates on computer and telephone consumables were revised upwards in the 2022 financial bill.
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Smartphones and tablets, as well as their accessories, were taxed at more than 133 percent under articles 123, 128, 129, 135, 136, 137, and 138 of the finance code for the current fiscal year, while PCs and their accessories were taxed at 60 percent.
Algeria electronic tax Algeria electronic tax
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer