Details of the obligation for large enterprises to allocate 1% of their profits for innovation

Enterprises with an annual turnover of two billion dinars or more will be required to allocate at least 1% of their taxable profits to fund research and development or innovation activities, with companies that do not comply with this obligation subject to a financial penalty calculated based on the difference between the legal percentage and the actual spending allocated for these activities. According to a joint ministerial decision between Finance Minister Mohamed Lamine Labou and Knowledge Economy, Startups, and Small Enterprises Minister Nourredine Ould, published in the latest issue of the official journal, this obligation applies to companies subject to Algerian law with an annual turnover of two billion dinars or more, regardless of ...