Tax authorities have ceased the annual declaration for the continuous professional training and apprenticeship fee, implementing a semi-annual system for declaration and payment. This significant shift marks an end to the previous annual declaration requirements, streamlining the process for businesses. The new procedures are part of amendments introduced by the Finance Law for 2026 and came into effect on January 1, 2026. Instruction No. 18/2026, issued in early April 2026, outlines these full changes, which include an expanded list of expenses for training workers and student internships. The instruction also amends the scope of application, basis for calculation, and deadlines for declaration and payment, providing a clearer framework for compliance. The fees are now calculated based on the semi-annual gross wage bill, replacing the previous annual basis, which represents a fundamental change in the assessment methodology.
Who Must Declare Fees
All resident bodies and institutions in Algeria are subject to these fees, with the exception of public administrations. This broad application ensures that most private and semi-private entities contribute to national training efforts. Institutions must declare fees if they do not allocate at least 1 percent of their semi-annual gross wage bill to professional training. This threshold encourages proactive investment in employee development. Similarly, institutions are subject to the fees if they fail to allocate an equivalent percentage to apprenticeships or student internships, emphasizing the importance of practical skill development. Both conditions, concerning training and apprenticeship/internship allocation, must be met for an institution to be subject to the fees. If an institution falls short in either area, it will be liable for the fee.
A mandatory declaration is required even if no amount is due, which can occur if the institution reaches the required spending percentage or if it is a small institution with fewer than 20 employees. This ensures transparency and compliance monitoring across all eligible entities, regardless of their financial obligation. Institutions that have no employees are explicitly exempt from these obligations, recognizing that these regulations apply to employers with a workforce.
Expanded Eligible Expenses
The new tax rules, effective January 1, 2026, broaden the scope of eligible expenses that institutions can declare towards their training and apprenticeship obligations. This expansion aims to provide greater flexibility and incentivize a wider range of educational and developmental activities. Under the updated regulations, expenses for student internships conducted within institutions are now recognized as part of qualifying training efforts, acknowledging the value of hands-on experience. Additionally, compensation provided to trainers for applied training programs is now included in the list of eligible expenditures, supporting the professionals who deliver essential skills.
Traditional training expenses, such as costs related to transport, accommodation, food, and insurance for trainees, remain covered, ensuring continuity for established training models. The revised guidelines incorporate the costs associated with tools and equipment specifically procured for trainees, allowing institutions to count these key investments towards meeting their required spending percentages. This full approach to eligible expenses reflects a commitment to modern and effective training methodologies.
Declaration and Payment System
The declaration and payment system has transitioned from an annual to a semi-annual schedule, aligning with the new calculation basis. Declaration is mandatory even if no amount is due, according to the new regulations. This requirement applies even if an institution meets its required spending percentages for training and apprenticeships, or if it is a small institution with fewer than 20 employees. This ensures that all relevant entities are accounted for in the system. The deadline for both declaration and payment of these fees is the 20th of the month following the end of each six-month period. This structured timeline provides clarity for institutions to manage their financial and reporting obligations effectively.
