New Mandatory Investment Rule for Innovation in Large Enterprises

Companies with an annual turnover of two billion dinars or more are now required to allocate at least 1% of their taxable profits to research, development, and innovation activities. This ministerial decree applies to all Algerian-law firms, regardless of their business sector. Businesses must declare their expenditures through a specific digital platform. Companies are permitted to defer these activities to the following fiscal year by filing an official commitment. If a company fails to meet the 1% spending threshold, it will be subject to a financial levy calculated based on the gap between the mandatory percentage and the actual expenditure, which must be paid to tax authorities.