ALNAFT

Tax regime of Law 19-13

a) Regular

Taxes
Tax base
The applied rate / Tariff
Payment frequency
Tax subject
Surface tax
- The surface of the perimeter covered by an exploration period that can be extended eventually
- The surface Object to retention
- The exploitationperimeter
Unit amounts in DA / Km2, in accordance to the hydrocarbon law (depending on the period). These amounts are indexed by ALNAFT at the start of each calendar year
Annually, at the latest the 20th of the month following each anniversary date of the entry into force of the upstream concession or the hydrocarbon contract.
- The national oil company in the case of an upstream concession, a production sharing contract or a risk services contract, or
- The contracting parties in the case of a participation contract.
Hydrocarbon royalty (*)
Any quantity of hydrocarbons extracted from the exploitation perimeter and counted at the measuring point after treatment and recovered in accordance with the provisions of Law 19-13
10% Also, a reduced rate of the hydrocarbon royalty may be granted under the conditions provided for by the regulations in force.
Monthly, at the latest the 15th of the month following that of production
- The national oil company in the case of an upstream concession, a production sharing contract or a risk services contract, or
- The contracting parties in the case of a participation contract.
Hydrocarbon income tax (IRH) (*)
The value of the production subject to the payment of the hydrocarbon royalty, less the deductions provided for by the provisions of Law 19-13 governing hydrocarbon activities.
If R <= 1 rate = 10%
If R> = 3 rate = 50%
If 1 3% rate = 20% x R-10%
Also, a reduced rate of the hydrocarbon income tax may be granted under the conditions provided for by the regulations in force.
Annual, payable monthly by installments paid at the latest the 25th of each month. The tax has to be liquidated at the latest March 31 of the following year
- The national company in the case of an upstream concession, a production sharing contract or a risk services contract, or
- The contracting parties in the case of a participation contract.
Income tax
The income of the financial year carried out by: the national oil company in execution of all upstream concessions, production sharing contracts and risk services contracts
For Each person other than the national oil company, the income is determined considering his participation rate in all the participation contracts to which said person
is part
30%
Annual, at the latest on the day of expiry of the deadline set for the filing of the annual statement of the financial year result
- The national oil company for all hydrocarbon contracts and upstream concessions
- Each person, other than the national oil company, party to a participation contract , taking into account their participation rate in all participation contracts.
Tax on the remuneration of the foreign co-contractor
The gross remuneration of the foreign co-contractor under a production sharing contract or a risk services contract, determined in accordance with the contractual provisions
(30%) to the gross remuneration
Annually, payable monthly by provisional advance payment at the latest on the 25th of each month. The tax will be liquidated at the latest March 20th of the following year
The foreign co-contractor. However, the national oil company pays it in the name and on behalf of the foreign co-contractor the amount of this tax.

b) Occasional

Taxes
Tax base
The applied rate / Tariff
Payment frequency
Tax subject
Flaring tax
The quantities flared during a given calendar year.
Twelve thousand dinars (12,000 DA) per thousand normal cubic meters (NM3) of flared gas This tariff is subject to indexation at the beginning of each calendar year by ALNAFT
Annual, at the latest January 31the of the year following that in which the quantities of gas were flared.
- The national oil company in the case of the upstream concession,
- The contracting parties in the case of hydrocarbon contracts
Hydraulic royalties
The quantities of water used for upstream activities
In accordance with the laws and regulations in force.
In accordance with the laws and regulations in force.
- The national oil company in the case of an upstream concession
- The contracting parties in the case of a hydrocarbon contracts.
Transfer right
The value of the transaction corresponding to the transfer operation.
(1%)
At each transfer
By the contracting party (s) concerned, by a transfer
Flat-rate royalty on anticipated production
Anticipated production is subject exclusively to payment of the flat-rate royalty on anticipated production.
50 %
Monthly, at the latest the 20th of the month following that of anticipated production
The regularization is done before March 1st of the following year
- The national oil company in the case of an upstream concession, a production sharing contract or a risk services contract and by the contracting parties in the case of a participation contract.

c) Exemptions

Taxes
Object
Value added tax (V A T)
equipment, materials, products and services relating to upstream activities;
Tax on professional activity (T. P. A)
Upstream activities are exempt: TAP
Customs duties, taxes and charges
Imports of equipment, materials and products relating to upstream activities;
Bank domiciliation tax
Services for upstream activities