The 2021 budget law introduced a permanent tax holiday for foreign-currency-generating export activities and suspended VAT and custom duties for imported or domestically purchased inputs used in the production of goods. It also extended the repayment period of overdue tax claims to 60 months from 36 months previously. 

In terms of spending measures, a supplementary finance law (SFL) enacted on June 4, 2020 included provisions amounting to DZD 70 bn dinars to mitigate the health and economic impacts of the COVID-19 crisis. For the health sector, this included DZD 3.7 bn for medical supplies, DZD 16.5 bn for bonus payments to health workers, and DZD 8.9 bn for the health sector's development. For the economic impact, the law included DZD 20 bn for allowances to the unemployed and DZD 11.5 bn for transfers to poor households. Overall, in order to adjust to the new low oil price environment, the SFL envisaged a reduction in current and capital spending by 5.7 percent (representing 2.2 percent of 2019 GDP) compared to the initial 2020 budget law.

The government estimates the total budget cost of spending measures taken in response to the pandemic at DZD 238 bn for 2020 and the first four months of 2021. Of this amount, DZD 99.1bn were in exceptional bonuses to civil servants contributing to the fight against the pandemic, mostly health workers, DZD73bn were in social support measures to low-income households and DZD 22.5bn for vaccine procurement.

In terms of economic reforms, a national socio-economic recovery plan was discussed at a conference in August 2020. The authorities published a 2020-2024 Economic Revival plan in June 2021. Among other things the plan aims at diversifying the economy, fostering high value-added sectors and international trade and promoting a favorable business climate and FDI.

(Updated: May 2022)

CIT：

Deferral of corporate income tax pre-payments until 21 June 2020. Taxpayers who file tax returns electronically are not affected by the measures.

Property taxes：

The deadline for payment of the tax for passenger vehicles, utility vehicles and passenger transport vehicles for the year 2020 is deferred until 30 June 2020.

PIT：

Deferral of personal income tax pre-payments until 21 June 2020. Taxpayers who file tax returns electronically are not affected by the measures.

In response to the economic impact on household and enterprises of the lockdown measures, the authorities also announced that:

(1)The declaration and payments of income taxes for individuals and enterprises have been postponed except for large enterprises;

(2)Contractual deadlines would be relaxed and penalties for companies that experience delays in completing public contracts would be suspended.

(Updated: August 2020)