Algeria Tax Agency Issues Circular on Tax Changes for Royalties, Fees for Use of Computer Software Fees

The Algerian General Directorate of Taxes May 14 issued Circular No. 01, clarifying the taxation of royalties and fees paid to nonresidents for the use of computer software under the 2020 Finance Act. The circular clarifies that: 1) the withholding tax rate reduction is decreased to 30 percent from 80 percent for payments to nonresidents from jurisdictions without a DTA with Algeria; 2) contracts that were concluded before Jan. 1 are still subject to the 80 percent reduction; and 3) contracts subject to the 30 percent reduction have an effective rate of 16.8 percent. The provisions entered into force Jan. ...