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An aspect of fiscal policy |
In Algeria, the most important sources of government revenue have been oil and gas royalties.
The current Algerian tax system consists of 2 regimes, the real [1] and fixed regimes. [2] This distinction issued from the reform implemented in 2007 when the taxation was revised. The main incentive to review the taxes was that after the 2000s energy crisis, taxes became the main resource of national income. That is why the incentive to work on its effectivity and to optimize it appeared in government. [3]
The fixed regime relies on the single fixed tax (the main change and innovation made by this reform) and the real regime consist of different taxes levied on taxpayer.
From the historical point of view the Algerian tax system seems to be inspired by its former coloniser- France. [4] Actually as a whole system it looks to be the reproduction of the French base by implementing different modalities of taxation (imposition).
There are different taxes levied:
The current tax system was changed and reformed several time. The very important, radical and innovative change happened in 2007 when the tax system was significantly reformed. The main fruit of this reform is the Single fixed tax. This new notion appears and was introduced as the simplification of the system with hope that it improves the fiscal situation and makes the system working more effectively. This fixed tax was established as the one single tax instead of 3 different taxes levied on every institution. The government's target is to improve the transparency, accessibility and justice in taxes.
This single fixed tax covers: Value added tax, professional activity tax, global income tax. [2] The single fixed tax was established for the most numerous group of taxpayers at the level of 5% for production and sale and 12% for any other activities. This reform covers people, network service providers, retailers, merchants, societies, enterprises, investors and all taxpayers with the turnover up to 30,000,000 DZD (US$263,400). This taxes is levied over the biennial period (lasting 2 years) Grouping of these different taxes makes the mechanism easier. It is easier for tax authorities to control and levy the taxes on this group of taxpayers. Taxpayers have to present in the period of 1 to 30 June every year the backward-looking sales/income report. Tax can be paid in whole amount or in 3 payments. The 1st payment in the beginning and then 25% in the period of the 1st till 15 September and the 25% left from 1 to 15 December.
The real regim consists of different taxes levied:
Income tax is progressive and categorical. Progressive scale goes from 0% to 35% according to the amount of income. It does not cover incomes below 120,000 DZD (US$1053); above this threshold and up to 360,000 DZD (US$3160) it represents 20% above it and up to 1,440,000 DZD (US$12,643) it is 30% and more than 1,440,000 DZD (US$12,643) it is 35%. Then there are categorical withholding tax rates at source. This one changes in function of the category the income belongs to. There is different classes with own scale within every classes so the tax varies between classes and within them at the same time. We have following categories of income: investment income (tax from 1% to 20%); salary, wages and other remuneration (classical monthly remuneration of employees is included in progressive scale mentioned above; for any other primes, amount paid or other type of income than monthly gained from the person's main activity exceeding 2,000,000 DZD (US$17,560) it represents 15%; or 10% for any other than monthly paid income paid by employer.) rental income (7%-15%; with exemption on the income issuing from the rent of apartments/houses up to 80 m2), capital gains arising from the transfer for consideration of real property (built or unbuilt) (5%).
Exemption: collective investment in transferable securities and companies, cooperations that are submitted to single fixed taxation 19% on production activities 23% building, public work, tourism (exemption on travel agencies) 26% any other activities If there is an multiple activity, the tax imposition has to be declared separately. There are also categorical withholdings tax rates from 10% up to 50% for anonymous cash certificates.
(Or sometimes also as Professional activity tax)
This tax relies on the turnover of taxpayers doing a profit making activity not covered by the income tax.
The exemption stands for any income of natural or legal persons issued from the companies or other legal persons if these ones are already taxed. This tax levies 2% 3% is for turnover of activities of pipelines for the transportation of hydrocarbons. 1% in production activities 2% in public works and hydraulic infrastructure
For real estate tax we differentiate built and unbuilt property. The government levy 3% on built properties in the strict sens; 10% on the built properties with the status of residence (of any reason or use :personal, familial, renting ...);
Between built and unbuilt properties there are lands with built objects (builts properties on them); there we levy tax of 5% on lands up to 500m2; 7% on lands of 500 m2-1000m2 ; 10% on lands with over 1000 m2
In cases of unbuilt properties we levy 5% on unbuilt properties situated in non-urbanized area. If the land is urbanized we levy up to 500 m2 5%; between 500 m2 and 1000m2 7% and 10% for urbanized lands with more than 1000 m2. There is special 3% tax on the farmland
This tax covers all the persons (inhabitants or not of Algeria) having any personal or real property in Algeria. It covers all real property and personal property of any value exceeding 500,000 DZD (US$4392)
This tax is levy only on natural persons if their taxable property exceeds the value of 100,000,000 DZD (US$878,500) The exemption is accorded on the capitalization value of the life annuities, on pensions and allowances received for recovering material damages as well as the work-related assets.
There is the progressive scale in function of the net taxable value which determines the amount levied by this tax. There is no tax if the net taxable value of property doesn't exceeds of 100,000,000 DZD (US$878,500); 0,5% if this value is between 100,000,000 DZD and 150,000,000 DZD (US$1,317,750); 0.75% for the property of the value up to 250,000,000 DZD (US$2,196,250); 1% for the property of the next taxable higher than 250,000,000 DZD but lower than 350,000,000 DZD (US$3,074,750); 1.25% on the property what net taxable value does not exceed 450,000,000 DZD (US$3,953,250); 1.75% is levied on the properties what next taxable value exceeds 450,000,000 DZD (US$3,953,250)
VAT represents 19% in Algeria (or 9% is the reduced tax for any staple foodstuff and pharmaceutics). Obligatory taxable operations: industrial/commercial/workmanship activity, operations of banks and insurance companies, activities of liberal professions, lease transactions, service provision, organizations of events, studies and research .... People subjects to VAT are all producers, wholesalers, importers and retailors.
Taxpayers of this tax are all the consumers in Algeria. This tax is levied on beers, cigars, tobacco, cigarettes, matches and lighters or also on some luxurious products such as salmon, coffee, caviar, fresh bananas kiwis or pineapples, ice cream, worn clothing, camping cars. The taxable base consists of fixed part and proportional part. The fixed part is defined in function of the volume of taxed object. The proportional part depends on the pre-tax price of the product. The amount of the tax is between 10% and 30% 3,971 DZD / HL of beer (US$34/ HL of beer) 10% is levied on cigarettes, cigars, tobacco, coffee (also decaffeinated) ; 20% on matches and lighters; and 30% on every other object to this tax.
Fuel normal : 800 DZD/HL (US$7,032 / HL)
Fuel super: 900 DZD/HL (US$7,911/ HL)
Unleaded: 900 DZD/HL (US$7,911/HL)
Diesel: 1 DZD/HL (US$0,00879/HL)
A tax is a mandatory financial charge or levy imposed on a taxpayer by a governmental organization to support government spending and public expenditures collectively or to regulate and reduce negative externalities. Tax compliance refers to policy actions and individual behavior aimed at ensuring that taxpayers are paying the right amount of tax at the right time and securing the correct tax allowances and tax relief. The first known taxation occurred in Ancient Egypt around 3000–2800 BC. Taxes consist of direct or indirect taxes and may be paid in money or as labor equivalent.
The United States has separate federal, state, and local governments with taxes imposed at each of these levels. Taxes are levied on income, payroll, property, sales, capital gains, dividends, imports, estates and gifts, as well as various fees. In 2020, taxes collected by federal, state, and local governments amounted to 25.5% of GDP, below the OECD average of 33.5% of GDP.
An income tax is a tax imposed on individuals or entities (taxpayers) in respect of the income or profits earned by them. Income tax generally is computed as the product of a tax rate times the taxable income. Taxation rates may vary by type or characteristics of the taxpayer and the type of income.
A regressive tax is a tax imposed in such a manner that the tax rate decreases as the amount subject to taxation increases. "Regressive" describes a distribution effect on income or expenditure, referring to the way the rate progresses from high to low, so that the average tax rate exceeds the marginal tax rate.
A property tax is an ad valorem tax on the value of a property.
A capital gains tax (CGT) is the tax on profits realized on the sale of a non-inventory asset. The most common capital gains are realized from the sale of stocks, bonds, precious metals, real estate, and property.
A wealth tax is a tax on an entity's holdings of assets or an entity's net worth. This includes the total value of personal assets, including cash, bank deposits, real estate, assets in insurance and pension plans, ownership of unincorporated businesses, financial securities, and personal trusts. Typically, wealth taxation often involves the exclusion of an individual's liabilities, such as mortgages and other debts, from their total assets. Accordingly, this type of taxation is frequently denoted as a netwealth tax.
In France, taxation is determined by the yearly budget vote by the French Parliament, which determines which kinds of taxes can be levied and which rates can be applied.
The United States federal government and most state governments impose an income tax. They are determined by applying a tax rate, which may increase as income increases, to taxable income, which is the total income less allowable deductions. Income is broadly defined. Individuals and corporations are directly taxable, and estates and trusts may be taxable on undistributed income. Partnerships are not taxed, but their partners are taxed on their shares of partnership income. Residents and citizens are taxed on worldwide income, while nonresidents are taxed only on income within the jurisdiction. Several types of credits reduce tax, and some types of credits may exceed tax before credits. Most business expenses are deductible. Individuals may deduct certain personal expenses, including home mortgage interest, state taxes, contributions to charity, and some other items. Some deductions are subject to limits, and an Alternative Minimum Tax (AMT) applies at the federal and some state levels.
Taxation in the Netherlands is defined by the income tax, the wage withholding tax, the value added tax and the corporate tax.
The tax system of the Russian Federation is a complex of relationships between fiscal authorities and taxpayers in the field of all existing taxes and fees. It implies continuous communication of all its members and related objects: payers; legislative framework; oversight authorities; types of mandatory payments. The Russian Tax Code is the primary tax law for the Russian Federation. The Code was created, adopted and implemented in three stages.
Due to the absence of the tax code in Argentina, the tax regulation takes place in accordance with separate laws, which, in turn, are supplemented by provisions of normative acts adopted by the executive authorities. The powers of the executive authority include levying a tax on profits, property and added value throughout the national territory. In Argentina, the tax policy is implemented by the Federal Administration of Public Revenue, which is subordinate to the Ministry of Economy. The Federal Administration of Public Revenues (AFIP) is an independent service, which includes: the General Tax Administration, the General Customs Office and the General Directorate for Social Security. AFIP establishes the relevant legal norms for the calculation, payment and administration of taxes:
Taxation in Italy is levied by the central and regional governments and is collected by the Italian Agency of Revenue. Total tax revenue in 2018 was 42.4% of GDP. The main earnings are income tax, social security, corporate tax and value added tax. All of these are collected at national level, but some differ across regions. Personal income taxation in Italy is progressive.
Most local governments in the United States impose a property tax, also known as a millage rate, as a principal source of revenue. This tax may be imposed on real estate or personal property. The tax is nearly always computed as the fair market value of the property, multiplied by an assessment ratio, multiplied by a tax rate, and is generally an obligation of the owner of the property. Values are determined by local officials, and may be disputed by property owners. For the taxing authority, one advantage of the property tax over the sales tax or income tax is that the revenue always equals the tax levy, unlike the other types of taxes. The property tax typically produces the required revenue for municipalities' tax levies. One disadvantage to the taxpayer is that the tax liability is fixed, while the taxpayer's income is not.
Taxes in Germany are levied at various government levels: the federal government, the 16 states (Länder), and numerous municipalities (Städte/Gemeinden). The structured tax system has evolved significantly, since the reunification of Germany in 1990 and the integration within the European Union, which has influenced tax policies. Today, income tax and Value-Added Tax (VAT) are the primary sources of tax revenue. These taxes reflect Germany's commitment to a balanced approach between direct and indirect taxation, essential for funding extensive social welfare programs and public infrastructure. The modern German tax system accentuate on fairness and efficiency, adapting to global economic trends and domestic fiscal needs.
Taxation may involve payments to a minimum of two different levels of government: central government through SARS or to local government. Prior to 2001 the South African tax system was "source-based", where in income is taxed in the country where it originates. Since January 2001, the tax system was changed to "residence-based" wherein taxpayers residing in South Africa are taxed on their income irrespective of its source. Non residents are only subject to domestic taxes.
In Slovakia, taxes are levied by the state and local governments. Tax revenue stood at 19.3% of the country's gross domestic product in 2021. The tax-to-GDP ratio in Slovakia deviates from OECD average of 34.0% by 0.8 percent and in 2022 was 34.8% which ranks Slovakia 19th in the tax-to-GDP ratio comparison among the OECD countries. The most important revenue sources for the state government are income tax, social security, value-added tax and corporate tax.
The tax system of the Czech Republic is similar in its main features to the systems of developed and especially European countries.
Taxes in Georgia are collected on both national and local levels. The most important taxes are collected on national level, these taxes include an income tax, corporate taxes and value added tax. On local level property taxes as well as various fees are collected. There are 6 flat tax rates in Georgia: corporate profit tax, value added tax, excise tax, personal income tax, import tax and property tax.