Business opportunities
The Opportunities Online website may be a useful addition to your information sources. The database established by Austrade aims to deliver international sales leads ('export opportunities'), including tenders, generated by our overseas network to Australian businesses.
Registering is simple and once this is done you will have the option of accessing a weekly newsletter featuring the most recent opportunities uploaded onto the system in industry sectors of interest to you. Another feature is the ability to view, and also print, the complete page of opportunity details.
For general inquiries concerning Austrade’s services, please contact Austrade Direct on 13 28 78.
Business etiquette
Business hours in Algeria:
- Government offices are open between 8.00am-12 noon, 1.00pm-5.00pm, Saturday to Wednesday, and 8.00am-12 noon, Thursday.
- Banks are open between 7.30am-5.30pm, Saturday to Thursday.
- Shops are open between 8.30am-12 noon, 2.30pm-5.30pm, Saturday to Thursday.
- During Ramadan (the ninth month of the Muslim calendar) businesses remain open at midday but close earlier in the afternoon, around 2.00pm.
Business practices:
- Although situated in Africa, business etiquette in Algeria is more reminiscent of Arab customs.
- Business is conducted in the office rather than over meals. Entertaining is usually done in hotels or restaurants. Algerian businessmen will rarely entertain at home or bring their wives to business social functions.
- The dress code for business is smart and conservative. Be respectful of the culture and religious customs. A suit and tie is appropriate for men; a suit for women. Dress conservatively if travelling outside of cities.
- Reconfirm appointments in advance and allow ample time between meetings in case of delays. Be punctual even though meetings can often start late.
- Businessmen generally speak Arabic or French and often much bargaining takes place during negotiations. Have an experienced interpreter on hand.
- Avoid making business appointments and meeting contacts during the month of Ramadan.
- Shake hands when entering and leaving meetings.
- Foreign female business executives may occasionally encounter some resistance.
Please also note: Bribery of foreign public officials is a crime. Australian individuals and companies can be prosecuted in Australia for bribing foreign officials when overseas. For more information, go to the Attorney General's Department on foreign bribery.
Tariffs and regulations
Algeria classifies its imports according to the Harmonised Commodity Description and Coding System. Imports must be insured with an Algerian firm.
A basic standard tariff is levied on goods originating in all countries that accord Algeria most-favoured nation treatment. Customs duties are highest on luxury goods. Strategic and vital products are exempted from customs duties.
All imports are subject to Value Added Tax (VAT). The rates are:
- Necessities - 7 per cent
- Almost all goods - 14 per cent
- Finished goods and luxury items - 21 per cent
There is also an additional tax, ranging from 10-80 per cent, on the customs value of the goods plus duties and VAT.
Ad valorem duties are assessed on a CIF basis that includes wholesale value of goods in the country of origin, transport charges, export duties, insurance, commissions, freight and all other costs incurred before the goods reach Algerian customs control. Customs duties and warehouse charges are not included.
There are preferential duties between Algeria and the European Union (EU), as
well as with the four other countries of the Arab Maghreb Union.
Prohibited items include firearms, explosives, narcotics, pork products, pornographic materials and other items prohibited for reasons of health, safety, national security or religion. The sale of alcohol is prohibited. Restricted products include some agricultural products (cheese, honey), luxury products (perfumes and cars). The list is revised every six months.
A commercial invoice in duplicate is required including:
- A detailed description of products
- The total value of the invoice and terms (FOB, CIF)
- Names and addresses of the exporter, importer, the consignee and the manufacturer
The invoice must be signed by the shipper and legalised by the consular services of the Algerian Embassy. If products contain foreign components the country of origin must be indicated along with the percentage of the foreign component. A separate certificate of origin is not required unless requested by the importer. In this case, supply two copies.
The packing list, in French, should describe the contents of each case or container including gross weights and CIF value of each commodity. Inclusion with ocean freight shipments will facilitate customs processing.
The bills of lading should include:
- Gross weight and measurements
- The name of the shipper
- Port of destination
- Number of bills of lading
- Date and signature of the carrier’s official
Shipping marks and numbers should correspond to those shown on the invoices
and the packages. The airway bill replaces the bill of lading on air cargo
shipments.
Documentation
Sanitary certificates are required for plants, plant product seeds and animals and animal products. There are also special requirements for potatoes and special documentary, and sterilisation for chestnut trees and wood. Imports must be accompanied by sanitary health certificates issued by the approved authority in the country of origin. This is usually done by The Australian Quarantine and Inspection Service (AQIS) of the Department of Agriculture, Fisheries and Forestry Australia. Meat & Livestock Australia or the State Department of Agriculture will also provide advice to meat exporters.
Plants for propagation and some plant products require phytosanitary certificates issued by the approved authority in the country of origin. Details can be obtained from AQIS.
Containers of fruit and vegetables should include country of origin, fruit variety or vegetable and quality class. Marks of origins are required for wines, nuts, canned foods, honey, margarine and various milk products. Goods should be packed to withstand weather conditions and rough handling.
Taxation
The taxation system has been revised substantially to increase flexibility and allow for greater transparency and simplicity. Foreign investors benefit from tax incentives, including five-year tax relief for companies.
Corporate tax is levied on all total annual profit or net income earned in Algeria. The standard rate is 30 per cent although some reinvested profits are taxed at the reduced rate of 15 per cent. It is payable by companies with share capital and limited companies; co-operatives and their unions conducting commercial operations; public commercial establishments; partnerships and civil companies opting for this tax system.
There is a tax withholding at the source for:
- Income from shares - 20 per cent
- Income from claims, deposits and guarantees - 10 per cent
- Income of foreign enterprises with no permanent professional premises - 18 per cent
- Income from management contracts 20 per cent
- Income from foreign shipping companies - 10 per cent
Several two-to five-year exemptions are granted for partnership and joint ventures or to companies whose activities are declared of priority (exports, hydrocarbons, etc.).
Income tax is levied on the overall net income of individuals living in Algeria and the Algerian income earned by any non-resident persons, subject to a double taxation agreement. Tax is imposed at a progressive rate on members of partnerships, companies and companies subject to the same system as partnerships and associations holding indefinite joint and several liabilities.
There is a tax withholding at the source for income from:
- Shares - 20 per cent
- Wages paid to non-residents - 20 per cent final tax
- Bonus and research, teaching and supervisory payment fees - 15 per cent
- Copyright and patent royalties - 20 per cent
- Non-commercial profits paid to non-resident by a person established in Algeria - 20 per cent
- Income from debt-claim deposits and guarantees - 15 per cent
- Interest from saving deposits, saving accounts linked to housing financing treasury bonds or similar bonds with more than five-year maturity - 5 per cent
Property tax applies to houses, factories, developed property, factory equipment, building lots and land for industrial and commercial use. The levies are:
- Rented property - 25-40 per cent
- Non-rented property and in property in the south - 10 per cent
- Land above 1000 square metres - 10 per cent
- Land between 500 square metres and 1000 square metres - 7 per cent
- Land less than 500 square metres - 5 per cent
Exemptions are granted to government property and to non-profit-making organisations as well as owner-occupiers with low monthly incomes. Undeveloped property is taxed at three per cent for non-agricultural land and five per cent for non-built up areas.
There is an annual tax on the value of real estate property, private cars, planes and racehorses:
- A$0.18-A$0.28 million - 0.5 per cent
- A$0.28-A$0.45 million - 1 per cent
- A$0.45-A$0.68 million - 1.5 per cent
- A$0.68-A$1.13 million - 2 per cent
- More than A$1.13 million- 2.5 per cent
Exemption is granted to job-related property.
Value Added Tax (VAT) applies to sales, building construction and services other than those subject to special taxes of an industrial, commercial or artisanal nature. The rate is normally 21 per cent, with a reduced rate of 14 and seven per cent. There is a three-year exemption from VAT on goods and services acquired locally or imported for new investors. Tax exemptions are available according to the sector and the site where the enterprise is based.
Business travel
Algiers (ALG) (Houari Boumedienne) in Dar-el-Beida is 20 kilometres from Algiers, Oran airport in Essénia is 10 kilometres from Oran, Annaba airport in El Mellah is 12 kilometres from the city and Constantine airport in Ain El Bey is nine kilometres from the city. Flying by plane is the most practical means of transport; most people fly to destinations in Algeria rather than take trains or buses. Flights connect to European, West African and Middle Eastern destinations.
Taxis generally service only the city centre (and aiport) and they are not always available, especially late at night or at peak hours. A taxi fare to the city is about A$9 and takes about 30 minutes. They are not dispatched to pick up individual clients, they usually follow a standard route and pick up several clients going in the same direction; sharing of taxis is widespread. All taxis are metered but there are surcharges after dark. Never use unlicensed taxis.
Coach and train services are available, however, public transport is not recommended. Travelling by road at night outside Algiers and other major urban centres should be avoided. It can be dangerous due to the condition of some mountainous roads and the existence of false (bandit) roadblocks.
Private transport is the most reliable option. Consult your business partners for advice. There are car rental facilities at most large airports.
Government ferries service the main coastal ports of Algiers, Annaba, Arzew, Béjaia, Djidjelli, Ghazaouet, Mostaganem, Oran and Skikda. Algérie Ferries runs passenger services connecting Algeria to Marseilles in France and Alicante in Spain.
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