What are the IFU rates?

0.5 % of turnover for ANAE auto-entrepreneurs (minimum 10 000 DZD/year), 5 % for production and the sale of goods, 12 % for services (minimum 30 000 DZD/year for the general IFU, art. 365 bis of the CIDTA, as worded by article 29 of the 2025 Finance Act).

Does the IFU exempt you from VAT?

Yes. Under the IFU you do not invoice VAT and you do not declare it. In exchange, you do not recover the VAT paid on your professional purchases. Under the réel regime, VAT (19 % or 9 %) is collected and declared every month through the G50.

What happens if I cross the threshold?

Article 282 ter of the CIDTA, as rewritten by article 22 of the 2025 Finance Act, provides that the IFU stays applicable for the year in which 8 million DZD is exceeded, the tax being assessed taking that overrun into account, and that it stays applicable for the following year as well. The réel regime takes over after that: full accounting, IBS, VAT and a monthly G50. For an auto-entrepreneur past 5 million DZD, article 13 of loi n° 22-23 only bites after three (3) consecutive years of overrun; no text sets a 30-day limit and we announce none.

Can you choose the réel regime voluntarily?

Yes, even below the 8M DZD threshold, and article 282 ter of the CIDTA says so expressly by taking out of the IFU those who have opted for taxation on actual profit or for the simplified regime for non-commercial professions. It makes sense if your charges are high (deducting charges and recovering VAT compensates), or if your corporate clients require invoices with VAT. The option only means something if you were admitted to the IFU in the first place: a SARL or an EURL is under the réel regime by default and has nothing to opt for.

Which regime pays the least tax?

With low charges (services, consulting), the IFU wins almost every time: a flat amount on turnover with no mandatory accountant. With heavy charges (stock, raw materials, large investments), the réel regime can cost less because the IBS only hits profit and VAT is recoverable. Simulate both before you register.

IFU or réel regime in Algeria 2026: how to choose?

A clear comparison of the IFU against the réel regime in Algeria 2026: the unified 8 million DZD threshold, the rates (0.5 % auto-entrepreneur, 5 % or 12 % general IFU, IBS 19 to 26 % under the réel regime), VAT, the minimums and what happens when you cross the threshold. Everything you need to pick your tax regime with no bad surprise.

Content verified on July 31, 2026Our methodology

ByÉquipe UpGrowth, Tax and company formation specialists

Published on July 11, 2026Updated on July 31, 2026

Which regime suits you? UpGrowth models both

IFU against actual profit modelled on your own figures, before registration

Which regime suits you? UpGrowth models both

IFU or the réel regime: the rule in one minute

The IFU (Impôt Forfaitaire Unique, single flat tax) is the simplified regime: one tax computed on turnover, with no VAT to invoice and lighter accounting obligations. The réel regime (the standard, actual-profit regime) is the classic one: IBS on profit, VAT to collect, monthly G50 returns and full accounting.

The rule has two conditions, not one. Standing first: article 282 ter of the CIDTA, as worded by article 22 of the 2025 Finance Act (Journal officiel no. 84 of 26 December 2024, page 9), admits to the IFU only natural persons carrying on an industrial, commercial, non-commercial or craft activity, traditional art and craft cooperatives and sociétés civiles professionnelles. A SARL or an EURL is a commercial company: it is not in that list, it is taxed under the IBS whatever its turnover (art. 150-1 of the CIDTA), and the choice described on this page does not concern it. Turnover second: for those three categories the IFU applies as long as annual turnover does not exceed 8 million DZD, a single threshold for every activity. Above it, the réel regime applies. ANAE auto-entrepreneurs have their own IFU at 0.5 % with a 5 million DZD ceiling.

Comparison table (2026)

Criterion	IFU	Réel regime
Who is concerned	Natural persons carrying on an industrial, commercial, non-commercial or craft activity, traditional art and craft cooperatives and sociétés civiles professionnelles, with annual turnover lower than or equal to 8M DZD (art. 282 ter of the CIDTA, as worded by article 22 of the 2025 Finance Act). ANAE auto-entrepreneurs up to 5M DZD. Neither a SARL nor an EURL	Commercial companies (SARL, EURL, SPA) whatever the turnover, IFU taxpayers whose turnover passes 8M DZD, or a voluntary option
Tax base	Turnover (flat rate)	Net taxable profit (turnover minus deductible charges)
Rates	0.5 % (auto-entrepreneur) · 5 % (production, sale of goods) · 12 % (services)	IBS 19 % to 26 % depending on the activity, on net profit. No turnover tax any more: the TAP was repealed by the 2024 Finance Act
Annual minimum	10 000 DZD (auto-entrepreneur) · 30 000 DZD (general IFU, art. 365 bis of the CIDTA, 2025 Finance Act art. 29)	No minimum flat amount: tax on the actual profit
VAT	Not liable: you do not invoice VAT	VAT 19 % (or 9 % reduced) to collect and declare
Returns	Forecast G12 by 30 June, paid in full or in instalments (50 % in June, 25 % in September, 25 % in December), then the final G12 bis by 20 January. No monthly return on anae.dz	Monthly G50 before the 20th, annual tax package
Accounting	Simplified register of purchases and receipts	Full accounting (balance sheet, journal, general ledger)
VAT recovery	Not possible	VAT deductible on professional purchases

IFU: what to remember

Standing first: article 282 ter of the CIDTA admits only natural persons carrying on an industrial, commercial, non-commercial or craft activity, traditional art and craft cooperatives and sociétés civiles professionnelles. A SARL or an EURL has no access to it and is taxed under the IBS (art. 150-1 of the CIDTA).
Threshold second: 8 million DZD of annual turnover for every activity (art. 282 ter of the CIDTA, as worded by article 22 of the 2025 Finance Act, Journal officiel no. 84 of 26 December 2024, page 9).
ANAE auto-entrepreneur: single rate of 0.5 % of turnover, minimum 10 000 DZD/year, ceiling of 5 million DZD.
General IFU: 5 % for production and the sale of goods, 12 % for the supply of services, minimum 30 000 DZD/year (art. 365 bis of the CIDTA, as worded by article 29 of the 2025 Finance Act).
Payment by instalments through the G12 form: June, September, December.
No VAT to invoice: your all-taxes-included prices stay simple, but you do not recover the VAT on your purchases.
Labelled startup: IFU exemption for 4 years, renewable for 2 more.

Réel regime: what to remember

IBS from 19 % to 26 % depending on the activity, computed on the net taxable profit and not on turnover: 19 % for the production of goods, 23 % for building, public works and hydraulics as well as tourism and thermal activities excluding travel agencies, 26 % for every other activity, services and trade included (art. 150-1 of the CIDTA, as enacted by article 46 of the 2022 Finance Act, JO n° 100 of 30 December 2021, p. 20, which carried forward the rates set by article 2 of ordonnance n° 15-01 of 23 July 2015, JO n° 40 of 23 July 2015, p. 6). Where several activities taxed at different rates are carried on at the same time, the profit taxable at each rate is determined by the share of declared or assessed turnover of each activity.
Mandatory quarterly IBS instalments: March, June, September (30 % of the previous year's IBS).
No taxe sur l'activité professionnelle any more: article 14 of the 2024 Finance Act repealed articles 217 to 231 of the CIDTA and no local turnover tax replaced it under the réel regime.
VAT to collect (19 % standard rate, 9 % reduced rate) and to pay over through the G50 return before the 20th of each month.
Full accounting is mandatory: annual balance sheet, journal, general ledger, often with a chartered accountant.
In exchange: charges are deductible and the VAT on purchases is recoverable. A high turnover with heavy charges can pay LESS under the réel regime than under the IFU.

Crossing the threshold: what happens?

If your turnover exceeds 8 million DZD, the IFU still applies for the year of the overrun and for the year after it, the tax being assessed taking the overrun into account (art. 282 ter of the CIDTA). For an auto-entrepreneur who exceeds 5 million DZD, no text requires converting into a company within 30 days: article 13 of loi n° 22-23 only bites after three (3) consecutive years of overrun. Plan ahead anyway: the switch changes your prices (VAT), your accounting and your returns.

The opposite option also exists: a business below the threshold may voluntarily choose the réel regime, for instance to recover the VAT on large start-up investments, or because its clients are companies that require invoices with VAT.

How to choose in practice?

The IFU wins almost every time when your charges are low (services, consulting, freelancing): 12 % of turnover with no heavy accounting beats an IBS at 26 %, the rate of the other activities line of article 150-1 of the CIDTA under which services fall, plus accountant fees. The réel regime becomes attractive when your charges go well beyond half of your turnover (trading with stock, production with raw materials, heavy investment) or when your B2B clients require VAT.

The right reflex: simulate both regimes on your real figures before registration, because the regime is chosen at the start and commits your first year. That choice only exists for the persons article 282 ter of the CIDTA admits to the IFU. If you set up a SARL or an EURL you are under the réel regime by default and the comparison above does not apply to you.

Choose your tax regime without getting it wrong

8 M DZD is the unified 2026 IFU threshold. Below it, the simple flat rate. Above it, the actual profit regime becomes compulsory. UpGrowth models your own case before registration.