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Slide 2 1. The incentive system under the Investment Act. Principles and foundations. Eligible activities & types of investments concerned. Schemes & benefits Content 2. Incentive systems under other legislation. Land. Funding. Other incentives Raised Points 3. Conclusion Slide 3 1. The incentive system under the Investment Act Slide 4 2. the incentive system under the Investment Act. Principles and foundations Declarative Principle non-discrimination between investors non-retroactivity of laws The Right to appeal (administrative and judicial) Encouragement to investment An eligibility to support measures, extended to all types of investments Guarantees and protections A transfer guarantee of principal and income Protection against administrative requisitions The signing of several bilateral agreements on foreign investment 48 conventions of encouragement and protection 27 non double Taxation Convention Adherence to various international conventions of investment guarantee & protection. The ability to use international arbitration: Ratification of the Convention on the Settlement of Investment Disputes between States and Nationals of Other States (the ICSID Convention). Nationals of Other States (the ICSID Convention). Ratification of the New York Convention 1958 on the enforcement of international arbitral awards awards Slide 5 Exemptions & aids Tax exemption Significant fiscal and parafiscal benefits of up to 10 years of exemption, depending on the location and size of the project (TVA, DD, DM, DC, IBS, TAP, TF). Funding Assistance in financing access (access to local funding, interest rate reduction, guarantees for credits, etc.) Land Support for access to land (mutual agreement, unique vis--vis, reduction of the rental fee, etc.) Incentives and encouragement General scheme: for current investments producing goods and / or services not excluded Derogatory scheme for: Investment in zones the development of wich requires the government support Investments of national interest (the Investment Agreement) High lands South North Slide 6 Conclusion An expanded eligibility for benefits Appropriate incentive schemes Coverage of the main aspects related to the business A good profitability For those who see a long way off, Algeria is close by Slide 7 Slide 8 1. the incentive system under the Investment Act. schemes & benefits Content General scheme: for current investments producing goods and / or services not excluded Derogatory scheme for: Investment in zones the development of wich requires the government support Investments of national interest (the Investment Agreement) High lands South North Slide 9 Tax on Value Added Registration fees on property tryearsfer /concessions Registration fees on deeds The projects settlement period : exemption from: Costoms duties 7 % 17 % 5 % 8 % 0.5 % 5 % 15 % 30 % 2 0 % - Derogatory scheme : - Zones scheme : 3 years (possibility to be extended for longer) - Agreement scheme : on mutual agreement basis 1. the incentive system under the Investment Act. schemes & benefits Content General Scheme : 3 years (possibility to be extended to more) - Refunding of expenses related to extra muros infrastructure works needed for the investment project Slide 10 Sales Tax Corporate profit tax Land Tax 2 % 5 % 8 % 1 % 5 % 19% 25 % 0 % The projects setlement period : exemption from : General Scheme for 3 years and up to 5 years if +100 jobs created - Zones scheme : 10 years - Strategic projects scheme : upto 10 years Registration & publishing fees/costs on state owned lands concessions 1. the incentive system under the Investment Act. schemes & benefits Content Slide 11 2. The incentive systems under other legislation Slide 12 Interest rate of 5.5% A bonus of 2% A bonus of 4.5% (investments in tourism in the South) A network of +20 banks and financial institutions, public or private, national or foreign Availability of funds from banks: 3500 billion dinars of credit to the economy Availability of Leasing Companies Availability of investment funds FNI stake to 34% in major projects 05 Investment Funds covering the whole territory up to 49% participation in the capital of SMEs 2. the incentive systems under other legislation. Funding Slide 13 High lands South & Great South North Price reduction of 90% during the implementation phase (03 years) Price reduction of 50%, during the start of operations 1 DA / m2, for 10 years Price reduction of 50%, during the start of operations 1 DA / Hectare, between 10 and 15 years Price reduction of 50%, beyond the period of 10 & 15 years Land grants (through concession): Direct agreement Discounts on the price of the rental fee based on the value for the Crown land leases (off-farm) 2. the incentive systems under other legislation. land Slide 14 2. the incentive systems under other legislation. Other incentives Highlands and South: 72% to 90% 35% of which 26% is paid by the employer North: 56% to 80% Reduced social costs of contribution to social security (recruitment of young job seekers) statutory rateAbatment : - Exoneration of VAT and customs duties - Exoneration of corporate and sales taxes Social Charges Export