Measure A · Incentive
Deducted twice
R&D and open innovation spend is deducted as a cost, then again, up to 30% of taxable profit and DZD 200 m a year (about USD 1.5 m).
Measure B · Obligation
1% of profit
From DZD 2 bn of turnover (about USD 15 m), spend at least 1% of taxable profit on R&D, or pay the shortfall as a tax.
Both together
One contract
An open innovation contract with a labelled start-up can meet the obligation and qualify for the deduction.
References
- Finance Law 2026 (Law 25-17), article 119: the R&D obligation.
- Direct Tax Code, article 171: deduction of R&D and open innovation expenses.
- Finance Law 2023, article 11; Finance Law 2025, articles 87 and 147.
- Executive Decrees 20-254 (2020) and 21-170 (2021); joint order of 9 May 2023; DGI communiqué, March 2024.
- Declaration platform: innovation.gov.dz.