Algerian-law establishments: 1% of profit to R&D or a tax (order of 11 October 2026)
The interministerial order of 11 October 2026 sets the sectors covered by research, development or innovation and how the related tax applies.
In short
The interministerial order of 11 October 2026 applies article 119 of the finance law for 2026. Establishments under Algerian law with annual turnover of 2 billion dinars or more must spend at least 1% of taxable profit on research, development or innovation. If not, the tax applies.
Key points
- All sectors of activity are covered (article 2).
- Threshold: annual turnover equal to or above 2 billion dinars.
- Minimum spending: 1% of the taxable profit of the financial year.
- Declaration on the platform before 31 January each year.
- Proof of tax payment goes to the platform within 10 days.
What the text provides
All sectors of activity are covered by research, development or innovation actions. The list of activities is in annex 1.
Research and development activities are carried out within the establishment or as open innovation programmes with start-ups, scale-ups or labelled incubators.
Who is concerned
The text covers establishments under Algerian law whose annual turnover is equal to or above 2 billion dinars. Each year they must spend a minimum amount equal to 1% of the taxable profit of the financial year.
Declaration and supporting documents
Spending is declared exclusively through the digital platform run by the ministry in charge of start-ups.
- Before 31 January each year: enter the data and upload the supporting documents (article 5).
- After processing, the establishment is told that the electronic statement of expenses can be downloaded. It is secured by QR code (article 6).
- The statement is submitted to the tax administration with the annual result return (article 7).
Deferral and tax
An establishment may defer the actions to the following financial year. It then files a commitment on the platform, attached to the annual result return (article 8).
If the 1% threshold is not met, the tax applies. Its rate is the positive difference between the legal rate of 1% and the spending ratio, meaning annual spending divided by the taxable profit of the year.
The tax is paid to the competent tax collector. The receipt goes to the platform within 10 days of payment. It is then attached to the annual result return and to the statement.
Frequently asked questions
Which establishments must spend 1% of profit on R&D?
Establishments under Algerian law with annual turnover equal to or above 2 billion dinars, in all sectors of activity. The minimum is 1% of the taxable profit of the financial year.
What is the deadline to declare on the platform?
Establishments must access the platform before 31 January each year. They declare their spending and upload the supporting documents there.
How is the rate of the tax calculated?
It is the positive difference between the legal rate of 1% and the spending ratio. The ratio is annual spending divided by the taxable profit of the year.
Who can handle this procedure in Algeria?
UpGrowth, based in Algiers (Birkhadem), supports Algerian and foreign companies with administrative procedures (NIF, trade register, CASNOS, etc.). Contact: https://www.upgrowth.dz/contact?service=demarches.