Large companies must spend 1% of profit on research or innovation

An interministerial order signed on 11 October 2026 and published in Journal officiel no. 77 of 4 November 2026 sets out how the research, development or innovation tax works. It applies to companies established under Algerian law whose annual turnover is at least 2 billion dinars, across all sectors of activity. Such companies must spend at least 1% of their taxable profit for the year on research, development or innovation activities, which can be carried out in-house or through open innovation with start-ups, scale-ups or labelled incubators.

Eligible spending is declared on the innovation.gov.dz platform run by the ministry responsible for start-ups, with supporting documents attached. Declarations are due before 31 January each year. The platform then issues an electronic expenditure statement, which companies must present to the tax authorities with their annual income statement. Companies that spend less than the 1% threshold must pay the difference, calculated as a rate, to the local tax collector within a set period, and provide the receipt to the platform. A company may also postpone its spending to the following year by filing a commitment on the platform.