IBS in one minute
IBS is the tax on company profits. In an SARL or an EURL, the company itself is taxed, on its profit; personal income tax is for sole traders. The partners are taxed separately on what they receive. A company with no profit pays no proportional IBS, but it must still file its return and a minimum tax applies.
- producing goods
- 19%
- construction, public works, water engineering, tourism and spas
- 23%
- other activities, including trade and services
- 26%
- deadline for the G n°4 return
- 30 April
Who pays IBS?
According to the DGI (tax administration), the annual G n°4 return is due from companies subject to IBS, whether the year shows a profit, a loss or no activity at all. These include:
- limited liability companies, SARL and EURL (single-member);
- joint-stock companies (SPA);
- state-owned economic enterprises and public industrial and commercial bodies (EPIC);
- foreign companies with a permanent professional establishment in Algeria.
Foreign companies without a permanent professional establishment are taxed by withholding at source. Partnerships (SNC) and civil companies follow special rules: have your tax office confirm your situation before your first return.
IBS rates by activity
| Activity | Rate | Examples |
|---|---|---|
| Producing goods | 19% | Manufacturing, processing, industry |
| Construction, public works and water engineering; tourism and spa activities, excluding travel agencies | 23% | Construction firm, hotel, spa resort |
| Other activities, including trade and services | 26% | Trading, resale of imported goods, consulting, IT, travel agency |
The CIDTA also provides a reduced rate for some reinvested profits, under strict conditions. Only apply it once your accountant or your tax office has approved it: a wrong application is costly in an audit.
From accounting profit to taxable profit
IBS is not calculated directly on the result shown in your accounts. You start from the accounting result, drawn from accounts kept under the financial accounting system (SCF), then apply the rule the DGI sets out: taxable result equals accounting result, plus add-backs, minus deductions.
- Add-backs: expenses booked in the accounts that the CIDTA does not allow, or allows only in part, as deductions.
- Deductions: income booked in the accounts that the law exempts or allows you to subtract.
- Past losses: they are carried forward against later profits, under the conditions and time limits set by the CIDTA.
| Line | Amount |
|---|---|
| Accounting result (profit) | 2,100,000 DA |
| Plus: add-backs (non-deductible expenses) | 150,000 DA |
| Minus: deductions | 50,000 DA |
| Taxable result | 2,200,000 DA |
| IBS at 26% | 572,000 DA |
| Minus: instalments paid in 2026 | 450,000 DA |
| Balance to pay, by 20 May 2027 | 122,000 DA |
The same 2,200,000 DA base would give 418,000 DA of IBS for a manufacturing company (19%) and 506,000 DA for a construction firm (23%). Hence the value of describing your activity accurately from the articles of association and the trade register onwards.
The timetable: three instalments and a balance
IBS is paid during the year, before that year's profit is known. Instalments are calculated on the profits of the last closed financial year. The balance, paid after the annual return, makes up the difference between the tax actually due and the instalments already paid.
| Deadline | Payment or filing | Form |
|---|---|---|
| By 20 March | 1st provisional instalment | G n°50 |
| By 20 June | 2nd provisional instalment | G n°50 |
| By 20 November | 3rd provisional instalment | G n°50 |
| Before 30 April of the following year | Annual return of results | G n°4 and tax schedules |
| From 1 to 20 May | Final balance (IBS due minus instalments) | G n°50 |
| Before 30 September | Annual summary statement (ERA) | Online |
Filing IBS, step by step
- 1
Close the accounts
At year end, your accountant draws up the balance sheet and income statement under the SCF.
- 2
Work out the taxable result
Fill in the table that moves from accounting result to taxable result: add-backs, deductions, losses carried forward.
- 3
Prepare the G n°4 and its schedules
Balance sheet, income statement and supporting tables, in the order of the DGI model.
- 4
File online before 30 April
On Jibaya'tic, compulsory under the real regime since 1 January 2026. A return cannot be changed once sent: check every figure.
- 5
Pay the balance by 20 May
On the G n°50: IBS due minus instalments paid, or the minimum tax if the year shows a loss.
- 6
Approve and file the accounts
The partners approve the accounts at a general meeting, then the company files its annual accounts with the trade register.
- 7
File the ERA before 30 September
The annual summary statement repeats information from the G n°4 and its schedules. It is filed online.
What 2026 changes for IBS
- Online filing: article 111 of the 2026 Finance Law makes online filing compulsory under the real regime, which covers the G n°4 and the G n°50 returns carrying the instalments and balance.
- No changes after sending: on Jibaya'tic, a return cannot be corrected online once sent.
- Rates: 19%, 23% and 26% are the rates published by the DGI. Any finance law can change them: check them at the start of each year.
Two ways to get it done
This guide is all you need to do it yourself. Neuron does not do bookkeeping or routine tax and social returns; we can, however, provide your registered address.
1I do it myself
The free guide
Everything you need is on this page: documents, deadlines, a filled-in example.
Free
Follow the guide2An address for your head office
Domiciliation in Dely Brahim
Your registered office in Algiers, with a 1 or 2 year notarised contract and your mail received.
6,000 DA/ month
Register my company