Algeria Implements Tax Clearance Requirement for Pharmaceutical Licenses
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Takeaway
The new tax clearance requirement adds another layer of compliance for pharmaceutical companies operating in Algeria. International investors should assess the potential impact on their Algerian subsidiaries' timelines for product registration and market access. Companies should engage with local tax advisors to ensure compliance and avoid potential disruptions to their operations.
Algerian pharmaceutical companies will now be required to present a tax clearance certificate when submitting files to the National Agency for Pharmaceutical Products (ANPP). This new measure aims to ensure that pharmaceutical companies settle all outstanding tax obligations with the Public Treasury before obtaining administrative approval for their applications. The requirement applies to applications for the registration of pharmaceutical products, the accreditation of medical devices, and the renewal, modification, or transfer of registration and accreditation decisions.
The Ministry of Pharmaceutical Industry (MOPI) and the ANPP were established in 2021 to modernize Algeria's pharmaceutical industry. MOPI enacted regulations in December 2020 that significantly reduced the time required for registering new drugs, from up to five years to as little as five months for proprietary drugs and three months for generic medicines. In February 2021, MOPI resolved a longstanding issue concerning representative offices for foreign pharmaceutical companies in Algeria, permitting them to market their products locally and establishing transparent rules for creating local pharmaceutical entities.
The ANPP, established on July 2, 2018, is responsible for the registration, approval, and quality control of pharmaceutical products and medical devices in Algeria. The agency operates under the supervision of the Ministry of Pharmaceutical Industry and is financially independent. The ANPP headquarters is located in Staoueli, Dely Ibrahim, Algiers, with regional branches in cities like Oran and Constantine for certain file submissions. The standard corporate income tax (CIT) rate in Algeria is 26% for most business activities. However, a reduced corporate tax rate of 19% applies to production of goods (manufacturing) activities.
This new tax clearance requirement could impact pharmaceutical companies by potentially delaying the approval process for new products and accreditations if tax obligations are not up to date. Companies must file their annual Corporate Income Tax (CIT) return before April 30 of the following year, with the final CIT payment due before May 20. The move could benefit the Public Treasury by ensuring the collection of outstanding taxes from the pharmaceutical sector, potentially increasing government revenue. Foreign companies operating in Algeria need to convert their financial results into the local currency, Algerian dinars (DZD), for tax calculation and payment purposes.
Pharmaceutical companies should ensure their tax compliance to avoid delays in their applications with the ANPP. The authorization for pharmaceutical import establishments is valid for two years, subject to renewal following inspection. Companies must also maintain records of all purchase and sales transactions and submit an annual import report by January 31 of the following year. The Ministry of the Pharmaceutical Industry issued decree No. 24 on October 1, 2025, outlining licensing requirements for pharmaceutical import establishments, modernizing the application process and strengthening oversight of pharmaceutical import activities.