NEWSLETTER 2016 N 1. KPMG Algérie. January 11th, FINANCIAL LAW FOR 2016 The key measures

Transcription

1 NEWSLETTER 2016 N 1 KPMG Algérie January 11th, 2016 FINANCIAL LAW FOR 2016 The key measures

2 Table of content 1. Reduction of the part of profits to be reinvested corresponding to the advantages granted to support investment 2. Resetting of the Car Vignette and the exemption for natural gas vehicles 3. Definition of the characteristics of the rolling machines covered by the scope of tax on the transactions of motor vehicles and rolling machines 4. Adjustment of the rate of VAT from 7 % to 17 % for certain products 5. Refitting of the Petroleum Products Tax (TPP) 6. Relaxation of the procedure to benefit of the VAT-free purchase regime 7. Ban to proceed to an additional tax audit after accounting check 8. Softening of the Appeal Commissions 9. Duty of motivation for the decisions of the Big Companies Administration s Director (DGE) 10. Extension of the communication right for the recharging mobile phone s actors exercised by the tax authorities 11. Softening of the temporary admission 12. Increasing of the sentence for the import of prohibited and dangerous goods 13. Increasing of the customs duty rate for adult diapers 15. Reorganization of the fee for the use of hydraulic public domain for business purpose (mineral water and source water). 16. Institution of a preferential tax and customs regime to protect the production of emerging industrial sectors 17. Implementation of the outward processing procedure applicable to petroleum products 18. Resort to external funding for the strategic investments under authorization of the government 19. Arrangement and management of industrial zones by the private sector 20. Opening of the share capital of the economic public enterprises for the local shareholding 21. Application of customs duties at the level of 15 % for the imported computer hardware 22. The realization of foreign investments (rule 49-51) 23. Reduction of the rate of VAT for raw materials intended for the manufacturing of Concentrated Vitamins Mineral ( CMV) for 2 years 24. Implementation of management companies in the activities of capital investment

3 The present note is not intended as an exhaustive analysis but as a presentation of the key measures of the law n of December 30 th 2015, establishing the Financial Law for 2016 (here "FL"), as published in the Official Journal n 72. TAX MEASURES 1. Reduction of the part of profits to be reinvested corresponding to the advantages granted to support investment: Articles 2 and 51 FL - Article 142 of the Direct Tax Code and assimilated taxes (CIDTA) and article 57 of the Complementary Financial Law for Previously, the beneficiaries of exemptions or tax reductions granted within the framework of the Ordinance n had to reinvest the concerned profits within four years (from the date of the closing of the exercise the results of which were subjected to the preferential treatment). Further to the modification introduced by the article 2 of the FL, the obligation of reinvestment will only concern thirty percent (30 %) of the aforementioned profits and not the whole. 2. Resetting of the Car Vignette and the exemption for natural gas vehicles: Articles 9 and 11 FL - Articles 300, 302 and 309 of the stamp Code The price rates of the Car Vignette are increased as follows: Commercial vehicles and of exploitation Bus of mor than 62 seats. Description Vehicles of less than 5 years Up to 2,5 tons except commercial vehicles Between 2,5tons to 5,5 tons More 5,5tons than Vehicles for people transport under 9 seats Minibus from 9 to Vehicles of more than 5 years Vehicles of tourism and fitted out in utility of a power of Under 6 HP Between 7 and 9HP Up to 10 HP 27 seats Minibus from 28 to 61 seats Bus of more than 62 seats AMOUNT OF THE TAX VIGNETTE IN DINARS Vehicles of less than 3 years Vehicles between 3 and 6 years Vehicles between 6 and 10 years Vehicles of more than10 year-old Definition of the characteristics of the rolling machines covered by the scope of tax on the transactions of motor vehicles and rolling machines: Article 10 FL - Article 147 sexiès of the Stamp Code To avoid any problem during the application of the aforementioned measure, an order of the Ministry of Finance will fix the characteristics of the rolling machines submitted to this tax. 4. Adjustment of the rate of VAT from 7 % to 17 % for certain products: Article 14 FL article 23 Tax on Turnover Code (CTCA). A full rate of 17 % is from now applicable to the following products, g goods and services: adult diapers ; Diesel fuel ; Consumption of natural gas exceeding 2500 therms by quarter; Consumption of low-voltage electrical energy exceeding 250 kilowatt-hours (KWH) by quarter. 1

4 5. Refitting of the Petroleum Products Tax (TPP): Article 15 FL - Article 28 bis of the CTCA. The amount of the tax on the petroleum or assimilated products, imported or obtained in Algeria in particular for the diesel fuel and the essence, are reviewed. 6. Relaxation of the procedure to benefit of the VAT-free purchase regime: Article 16 FL - Article 43 CTCA. To facilitate the aforementioned procedure, the approval is now granted by the director of the taxes of the competent Wilaya instead of the regional manager. 7. Ban to proceed to an additional tax audit after accounting check: Articles 23 and 24 FL - Article 20-8 and 21-1 of the code of the tax procedures (CPF) The new wording excludes expressly any additional control, including checks on documents after a check of accounting or check of fiscal situation VASFE (for the physical persons). It remains settled that in case of fraudulent actions or supply of incomplete or inaccurate information, the tax authorities will have the entire legal faculty to return over the periods and the taxes already subject to verification. 8. Softening of the Appeal Commissions: Articles 26, 27 and 28FL - article 81 of the CPF To improve the implementation of legislation and the regulations in force, measures are recommended in particular: The institution of new Commissions (the state, regional and central) by deleting the commission of daïra; Introduction of the professionalization within Commissions; Strengthening of the legal nature of the notices returned by these Commissions (enforceable decision). These new measures will enter into force on January 1st, Duty of motivation for the decisions of the Big Companies Administration s Director (DGE) Article 34 FL - Article 172 of the CPF The new wording of the article 172 of the CPF imposes to the Director of Big Companies Administration: The obligation to motivate his decisions, by indicating the legal basis; As well as the obligation to notify the decision to the taxpayer against acknowledgement of receipt. 10. Extension of the communication right for the recharging mobile phone s actors exercised by the tax authorities: Article 35 FL - Article 45 of the FL on 2005 Within the framework of the right of communication exercised by the tax authorities, the operators and the distributors as well as the wholesalers of the mobile telephony should provide the tax authorities at request with state of their customers. CUSTOMS PROVISIONS: 11. Softening of the temporary admission: Articles 38 and 39 FL - Articles 182 and 182 bis of the Customs regulations (law of July 21st, 1979 modified and completed) Article 38 of the FL modifies and completes article 182 as follows: The customs clearance of goods imported within the framework of temporary admission (inwardprocessing regime) is submitted to a prior authorization of the Customs administration. The companies which make regular operations benefit from a global authorization, covering its operations. The global authorization specifies the deadline for the regularization of every import of goods, intended to be placed under this regime. The global authorization concerns products intended for the production of the same compensating product. The modalities of application of the present article will be fixed by decision of the Director of Customs. The article 182 bis will fix the goods which can be placed under this regime: Inputs imported directly from foreign countries, which are the property of the beneficiary of the regime or provided to him by the applicant of the compensatory product; Inputs under other economic customs system (bonded warehouse ). 12. Increasing of the sentence for the import of prohibited and dangerous goods Article 40 FL - Article 28 FL 2012 modified by the article 44 of the FLC for 2015 The goods considered as prohibited and dangerous quoted in the FL are: 2

5 Articles for fireworks, rockets of road marking or anti-hail and similar, firecrackers and other articles pyrotechnic Narcotics Arms and ammunition, parts and accessories. Powders, explosives, left and secondary. Tobaccos, tires and worn rolling ways are removed from the list of In case of import of the aforementioned the sentences are: A jail sentence between six (06) months and five (05) years (previously between two months and six months). A fine equals twice the value of the seized goods; The confiscation of goods object or means of fraud Confiscation of the other goods declared briefly by the offender, and not deprived of the date of observation of the breach. 13. Increasing of the customs duty rate for adult diapers : Article 43 FL Previously, adult diapers were subject to the VAT at 7 % and exempted from customs duties. In order to encourage this emerging industry, the import of these finished products will be submitted from now for the customs duties at the thirty percent rates (30 %). 14. Authorization to release for consumption the equipments imported under the regime of temporary admission Articles 44 FL According to the article 50 of the FLC for 2009, the release for consumption was authorized only for new goods and not for used products. Currently, the article 44 of the FL provides that the goods imported within the framework of the article 181 of the customs regulations (temporary admission), can be sold to Algerian companies, in order to be release for consumption. DOMANIAL DISPOSITIONS 15. Reorganization of the fee for the use of hydraulic public domain for business purpose (mineral water and source water). Articles 47 and 48FL The fee for the use of the hydraulic public domain is fixed as follows: Thermal water: 5 % of the gross revenues, resulting from the exploitation of the structures of baths; Water of human or industrial consumption: 2 % of the subscriptions revenue. The price rate of the fee is fixed to (1) dinar per liter of water sent by the conditioning workshops. OTHER MEASURES 16. Institution of a preferential tax and customs regime to protect the production of emerging industrial sectors : Article 52 FL The reduced rates regarding applicable customs duties on certain finished products imported within the framework of International Agreements make similar local products more expensive and not competitive. Currently, certain listed products (revised every year by means of the finance law) will be subject to VAT and Internal Consumption tax (TIC), according to the rates and the price rates fixed by the future Finance Laws. The imported products taking part in the system of licenses and in the quota system are exceptionally integrated into this list, as safeguard measures, and are subject to rates from 5 % to 30 %. The rate applicable to every product is fixed by statutory way. 17. Implementation of the outward processing procedure applicable to petroleum products : Article 54 FL In order to reduce the financial cost of SONATRACH, it is suggested to grant the exemption regarding customs duties to the re-importation of the oil and the diesel fuel, under the outward processing procedure. 18. Resort to external funding for the strategic investments under authorization of the government : Article 55 FL The article 55 provides the possibility to resort to external funding for the realization of strategic investments done by resident companies. In this regard, a prior authorization of the government is required. The detailed rules of this measure shall be specified, when necessary, by statutory way. 19. Arrangement and management of industrial zones by the private sector Article 58 FL 3

6 The article 58 of the FL plans the possibility of fitting out and managing business zones or industrial zones by the private sector. The management is submitted to a specification book developed by the ministry in charge of the investment. 20. Opening of the share capital of the economic public enterprises for the local shareholding Article 62 FL The opening of the share capital of public enterprises is planned as follows in the writing of the article 62: The economic public enterprises which realize operations of opening of the share capital in the direction of the resident national shareholding have to preserve at least 34 % of the total of the shares. At the expiration of the period of five (05) years and having dully established that all requirements have been respected, the national shareholder can exercise, before the state participation council, a stock option in order to buy the shares held by the economic public enterprise. On the other hand, VAT rate is reduced to 7 % for raw materials, entering on the local manufacturing of concentrated Vitamins Mineral CMV and this until December 31st, Implementation of management companies in the activities of capital investment: Article 70 FL - 1st article of the law N The management companies of investment fund can exercise the activity of capital investment, by mandate of the companies of capital investment. The modalities of constitution, management and exercise of the management companies investment fund will be specified by statutory way. Entry into force The provisions of the Financial Law come into force one clear day after publication thereof. In case of council approval, the transfer is realized at the price settled in the shareholders' agreement or at the price fixed by the council. The detailed rules of the present article will be specified, as and whenever necessary, by statutory way. 21. Application of customs duties at the level of 15 % for the imported computer hardware Article 63 FL In order to support the investment and the local industry, the imported hardware is submitted to the fifteen percent rates (15 %) of customs duties. 22. The realization of foreign investments (rule 49-51) Article 66 FL The rule of 49-51, already provided by the Ordinance is confirmed and replaced in the article 66 of the Financial Law. It applies for any project of investment in the activities of production of goods, services and import by foreigners. Contact : KPMG Algérie SPA A Alger Immeuble KPMG Lot 94 Zone d'affaires Bab Ezzouar, Alger, Algérie Tél: (0) Fax: (0) Reduction of the rate of VAT for raw materials intended for the manufacturing of Concentrated Vitamins Mineral (CMV) for 2 years Article 68 FL To encourage the local production, the customs duties on the imported finished product are raised. A Oran 05, Cooperative Adnane Mustapha, Zhun Usto, Oran Tél : (0) Fax : (0) Site web: TL@kpmg.dz 4