IFU 0.5%, how to calculate the auto-entrepreneur flat tax

The Algerian auto-entrepreneur is subject to a simplified tax regime: the final flat tax (IFU) at a rate of 0.5%, called "final" because it stands in for income tax on the activity concerned. The principle is simple; mistakes almost always come from the calculation basis. This guide sets it out clearly.

The rule in one sentence

The auto-entrepreneur's IFU equals 0.5% of the revenue earned. Not of profit, not of net income: of revenue.

Two consequences:

• Expenses are not deductible. Your equipment, subscriptions, and travel do not reduce the IFU. That is the trade-off for a very low rate.
• You do not charge VAT, so the revenue used is the net amount invoiced and collected.

Worked examples

In other words: for every 100,000 DZD invoiced, the IFU comes to 500 DZD.

Invoiced revenue or collected revenue?

In practice, keep two counters:

• Invoiced, which measures your business activity.
• Collected, which corresponds to the sums actually received.

An unpaid invoice is not income. Tracking what's collected keeps you from paying tax on money you never received, and from thinking you're far from the cap while unpaid invoices pile up. MyHissab shows both: collected revenue for the IFU and the cap gauge, and the amount still awaiting payment.

The link with the cap

The revenue cap (5,000,000 DZD for services, 10,000,000 DZD for micro-import) is a condition of the status, not a tax threshold. The 0.5% rate applies to all revenue up to the cap. If you're approaching it, the question isn't a tax one but a status one: you need to consider changing your legal form before exceeding it.

How the IFU is declared and paid

The IFU is declared and paid to the tax administration, according to the calendar it sets for the auto-entrepreneur regime. The declared amount corresponds to the period's revenue, to which you apply 0.5%. Keep:

• all your numbered invoices,
• proof of payments received (statements, deposit receipts),
• an annual revenue summary.

The practical details (frequency, form, payment channel) are set by the General Directorate of Taxes and may change: check the current year's calendar on its official channels.

Three pitfalls to avoid

1. Deducting your expenses. The regime is flat-rate: the basis is gross. If your expenses are very high relative to your revenue, the auto-entrepreneur status may not be the most advantageous, but the IFU is calculated the same way regardless.
2. Forgetting cash receipts. They count toward revenue just like bank transfers. The stamp duty that applies to them is a separate tax, not to be confused with the IFU.
3. Waiting until December to do your accounts. A monthly check-in takes five minutes and avoids unpleasant surprises, especially as you approach the cap.

Simulating your IFU in MyHissab

MyHissab's dashboard shows, for the current year, collected revenue, the estimated IFU at 0.5%, and your position relative to the cap, with an alert at 80% and again at 100%. An annual summary can be downloaded as a PDF to prepare your tax return.