The vocational training tax and the apprenticeship tax are mandatory contributions imposed on employers in Algeria. They are aimed at financing the continuing training of employees as well as apprenticeship and work-based internship schemes. These taxes are governed by article 196 bis of the Code of Direct Taxes and Assimilated Taxes (CIDTA) and have undergone significant changes as part of the Finance Law for 2026.

Reminder of the legal framework (before 2026)

Under the rules prior to the Finance Law 2026, the vocational training tax and the apprenticeship tax apply to all employers established or domiciled in Algeria, with the exception of public institutions and administrations. The base was calculated at 1% of the annual gross payroll, and the company was required to file a special annual return, even if it was not liable (a "nil" return).

Main changes introduced by the Finance Law 2026

The Finance Law 2026 brings significant changes to the way these taxes are calculated, declared and reported by companies. These changes aim to strengthen real investment in skills development, improve transparency of calculation and adapt declarations to semi-annual practices.

1. Shift to semi-annual periodicity

Until 2025, the tax was calculated and declared on an annual basis. The new Finance Law 2026 now provides for taxation and declaration to be carried out on a per-semester basis. This means that each employer must determine its base and file a return twice a year, covering the first and second semesters.

2. Calculation of the amount due based on actual expenditure incurred

Whereas previously the tax was calculated essentially on 1% of the gross payroll, the Finance Law 2026 introduces a more precise and transparent calculation method:

• The minimum reference rate remains 1% of the semi-annual gross payroll.
• Expenditure actually incurred on vocational training and apprenticeship activities will be deducted from this base to determine the amount actually due.
• If the actual expenditure exceeds the legal minimum, the tax due can be reduced or offset.
• This approach encourages companies to genuinely invest in the training and professionalization of their employees and apprentices, rather than simply paying a flat-rate tax.

3. Explicit inclusion of apprenticeship and internships in the calculation

The new law places particular emphasis on taking into account expenditure related to apprenticeship and work-based internships. This includes the costs of practical training, wages of apprentices or interns and expenditure directly associated with their supervision.

4. Mandatory return even if no amount is due

One of the key points of the Finance Law 2026 is that the semi-annual return remains mandatory for all employers, even in cases where no tax is payable. In other words, a "nil" return will have to be filed at the semi-annual deadline, thereby strengthening tax compliance and the regularity of companies' reporting obligations.

Practical impacts for employers

A. Declaration obligations

Employers will now need to organize themselves to:

• Collect payroll data and training expenditure every six months.
• Prepare and file a semi-annual return, in accordance with the regulatory calendar specified by the Algerian tax administration.
• Retain supporting evidence of training and apprenticeship expenditure to present during a tax audit.

B. Accounting and tax management

The semi-annual periodicity and the detailed integration of actual expenditure require much closer coordination between the company's finance, HR and training departments. Accounts will need to be kept in a way that precisely isolates this expenditure to avoid any discrepancy in the return.

Conclusion

The Finance Law 2026 introduces a new era of tax compliance concerning the vocational training tax and the apprenticeship tax in Algeria. By establishing a semi-annual periodicity, integrating actual training expenditure into the calculation and making filing mandatory even in the absence of an amount due, the legislator aims to further encourage skills development and genuine corporate investment in the training of employees and apprentices.