According to Article 10 of the Algerian Tax Code, an individual is considered a tax resident in Algeria if they meet any of the following criteria:
- They have their habitual residence in Algeria.
- They have their main place of business or professional activity in Algeria.
- They have their center of economic interests in Algeria.
The concept of "habitual residence" is not explicitly defined in Algerian tax law, but it is generally understood to mean the place where an individual maintains a permanent home and spends the majority of their time. The "main place of business or professional activity" refers to the location where an individual carries out their primary business or professional activities. The "center of economic interests" is the place where an individual's economic interests are concentrated, such as the location of their investments, assets, and business activities.
Impact of International Tax Treaties on Tax Residency Criteria
Algeria has entered into several double taxation treaties (DTTs) with other countries. These treaties may modify or provide exceptions to the standard criteria for tax residency as defined in domestic law.
For example, the DTT between Algeria and France provides that an individual is considered a resident of Algeria if they have their "permanent home" in Algeria. This definition is broader than the definition of "habitual residence" in Algerian domestic law, which means that more individuals may be considered tax residents of Algeria under the DTT with France.
Another example is the DTT between Algeria and the United Kingdom. This treaty provides that an individual is considered a resident of Algeria if they have their "fiscal domicile" in Algeria. The concept of "fiscal domicile" is not defined in Algerian domestic law, but it is generally understood to mean the place where an individual is subject to personal income tax. This means that more individuals may be considered tax residents of Algeria under the DTT with the United Kingdom than under domestic law.
The treaty-specific modifications to the criteria for tax residency are intended to prevent double taxation and promote cross-border trade and investment. They reflect the mutual agreement between Algeria and the other country to facilitate tax compliance and enhance economic cooperation.
If you need any other informational tax guides for other countries, feel free to browse our other articles below:
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