taxnews.ey.comPrint

28 May 2025

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.

* * * * * * * * * *
Contact Information

For additional information concerning this Alert, please contact:

Ernst & Young Advisory Algérie

Published by NTD’s Tax Technical Knowledge Services group; Andrea Ben-Yosef, legal editor

Document ID: 2025-1141

 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

Copyright © 1996 – 2025, Ernst & Young LLP

 

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

 

EY US Tax News Update Master Agreement | EY Privacy Statement