What is the IFU threshold in 2026?

8 million DZD of annual turnover, a threshold unified for every activity by the 2026 Finance Act. Below it you fall under the IFU. Above it the réel regime applies. ANAE auto-entrepreneurs have their own specific ceiling of 5 million DZD.

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, raised by LF 2026).

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?

Beyond 8 million DZD of turnover you switch to the réel regime: full accounting, IBS, VAT and a monthly G50. An auto-entrepreneur who exceeds 5 million DZD must convert into a company (EURL or SARL) within 30 days.

Can you choose the réel regime voluntarily?

Yes, even below the 8M DZD threshold. It makes sense if your charges are high (deducting charges and recovering VAT compensates), or if your corporate clients require invoices with VAT.

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, Experts fiscalité et création d'entreprise

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

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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.

Simple rule: below 8 million DZD of annual turnover you fall under the IFU (threshold unified by the 2026 Finance Act). 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	Annual turnover lower than or equal to 8M DZD (single threshold, art. 282 ter of the CIDTA), ANAE auto-entrepreneurs up to 5M DZD	Turnover above 8M DZD, or 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, plus TAP 1 % to 2 % of turnover
Annual minimum	10 000 DZD (auto-entrepreneur) · 30 000 DZD (general IFU, raised by LF 2026)	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	Annual G12 with instalments (June, September, December) · monthly on anae.dz for auto-entrepreneurs	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

Eligibility threshold unified at 8 million DZD of annual turnover for every activity (2026 Finance Act).
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 (raised from 10 000 to 30 000 DZD by LF 2026).
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.
Mandatory quarterly IBS instalments: March, June, September (30 % of the previous year's IBS).
TAP from 1 % (production) to 2 % (services and trade) of turnover, declared monthly.
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, you switch to the réel regime. For an auto-entrepreneur who exceeds 5 million DZD, the law requires converting into a company (EURL or SARL) within 30 days. Plan ahead: 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 % plus TAP plus accountant fees. The réel regime becomes attractive when your charges exceed 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.

À noter

Choisir son régime fiscal sans se tromper

8 M DZD le seuil IFU unifié 2026. En dessous, forfait simple. Au-dessus, réel obligatoire. UpGrowth simule votre cas avant l'immatriculation.