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Algerian order introduces new categories of fixed assets and their depreciation periods
- An Order issued on 14 April 2025 amends a previous Order (from 25 February 2024) regarding depreciation periods for fixed assets.
- The new Order, which is effective immediately, includes an expanded annex detailing additional categories of tangible and intangible fixed assets.
- Taxpayers should review their asset classifications and adjust their depreciation strategies accordingly.
An Order issued on 14 April 2025 amends provisions established by a 25 February 2024 Order, which delineated the depreciation periods for tangible and intangible fixed assets utilized in the calculation of taxable profit. (For background, see EY Global Tax Alert, Algerian Finance Ministry offers clarity on transfer pricing documentation and determining depreciation period for fixed assets, dated 16 April 2024.)
The new Order, which is effective immediately, introduces an expanded annex that specifies additional categories of fixed assets and outlines their corresponding depreciation durations.
The table below summarizes the new fixed-asset categories along with the ranges of their applicable depreciation periods, as defined by the 14 April 2025 Order.
|
Fixed-asset type |
Depreciation period |
|---|---|
|
Industrial machines and equipment with specific lifespans |
5 to 20 years |
|
Materials and tools |
7 to 10 years |
|
Agricultural materials and equipment and biological assets |
7 to 40 years |
|
Materials and equipment for hospitality and catering |
5 to 10 years |
|
Materials and equipment for the distribution, storage and marketing of petroleum products |
7 to 25 years |
|
Electrical and gas equipment and machinery |
10 to 30 years |
|
Building, public works, hydraulic and quarry equipment |
7 to 20 years |
|
Telecommunication equipment and machinery |
5 to 20 years |
Implications
The introduction of fixed categories for the depreciation periods should clarify the expectations of the tax authorities and secure the position of the taxpayers in case of tax audit, although companies may maintain their current depreciation rates.
For additional information concerning this Alert, please contact:
Ernst & Young Advisory Algérie
- Halim Zaidi
- Anis El Hadj Ali
For a full listing of contacts and email addresses, please click on the Tax News Update: Global Edition (GTNU) version of this Alert.
Published by NTD’s Tax Technical Knowledge Services group; Andrea Ben-Yosef, legal editor