To modernize its operations, the Algerian state has focused on rapid digitization. A fully digital tax system is being developed to simplify and enhance the security of tax processes.

Algerian President Abdelmadjid Tebboune has directed the rapid implementation of a project to digitally link national tax data with the country's central digital database, signaling a push to eliminate manual tax data management and enhance transparency.

The directive, issued during a Council of Ministers meeting on Sunday, March 9, underscores the government's commitment to modernizing its tax system, according to a statement released by the council.

"This directive aims to facilitate procedures for investors while ensuring transparency in tax collection, monitoring, and regularization through a fully digitized process," the statement reads.

The digital interconnection seeks to streamline tax procedures for taxpayers, particularly investors, by providing faster access to tax services. It also aims to strengthen transparency and traceability in tax transactions, reducing the risk of fraud, tax evasion, and non-compliance. The digitization is expected to optimize tax revenue collection and improve property valuation.

The project is part of a broader initiative to modernize Algeria's tax administration and digitize public services. Since early 2023, sectors including Customs and State Property have undergone digital transformations.

The tax administration has deployed digital platforms, such as "Djibayatic" and "Moussahamatic," across tax structures nationwide, enabling taxpayers to conduct online procedures, file declarations, and make digital payments.

However, full implementation requires interoperability between tax platforms and those of other government agencies and economic sectors. Nine key interfaces are to be established, including connections with the Ministry of the Interior, Customs, State Property, the National Trade Register Center (CNRC), and the Algerian Investment Promotion Agency (AAPI). These interconnections will refine taxpayer identification and simplify procedures.

The project aims to modernize the tax administration and optimize revenue collection. Success hinges on deploying infrastructure, training tax agents in digital tools, and educating taxpayers on the benefits of digital taxation.

Algeria's move reflects a commitment to building a modern, transparent, and efficient tax administration.

By Samira Njoya,

Editing by Sèna D. B. de Sodji