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January 4, 2026 | 3 months ago
2026 Finance Act: everything that is changing from January 1
The Finance Act for 2026 was published on Wednesday, December 31, in the Official Journal and came into force on Thursday, January 1. This text establishes the government's budgetary, fiscal, and economic guidelines for the year.
On the macroeconomic front, the LF forecasts GDP growth of 4.1% in 2026, driven by a 6.3% increase in the industrial sector, with prospects of 4.4% in 2027 and 4.5% in 2028. It affirms the goal of economic diversification and maintains a strong social focus: no new taxes on households, subsidies for basic commodities and energy, and increased support for employment.
Among the structural investments:
• DZD 530 billion for water infrastructure
• DZD 413.2 billion for rail (notably the Béchar-Tindouf and Bled El Hadba-Annaba mining lines)
• DZD 378.8 billion for roads
• DZD 7.9 billion for airports
• DZD 40.5 billion for maritime infrastructure.
The budget per ministry allocates substantial funds to defence (3.205 billion DZD), finance, education, the interior, and transportation. Unemployment benefits have been raised to 18,000 DZD/month, and the wage bill has risen by 83 billion DZD, with salary and pension rises planned for 2026-2028.
The law also introduces:
• Tax incentives for start-ups and innovative companies (exemptions extended to two years)
• Measures for renewable energies (reduced VAT, customs exemptions)
• Targeted VAT reductions (housing, health, training, transport)
• A new fuel tax for vehicles leaving the country
• A tax on transport tickets (1,400 DZD for sea travel, 1,900 DA for air travel)
• A 15% domestic consumption tax on tobacco.
For businesses:
• Reduction of the IRG on dividends to 10%
• New obligations for foreign companies (VAT, IBS, contracts)
• Introduction of a flat rate of 40% on capital gains on real estate
• Requirement for certified invoicing software from 2027.
Finally, the law authorizes the importation of vehicles less than five years old for Algerians returning permanently, with tax exemptions under certain conditions.
January 4, 2026 | 
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