With regard to KPMG Algeria, hereby can be submitted some terms and conditions of the expatriate status in Algeria , the articles is expected to be guidance of Wika’s people to go to Algeria as following :
1. Staying In Algeria : Conditions – Procedure – Working Permit
A valid passport and visa are required to travel in Algeria as a tourist or business. A may be obtained upon submission of professional or private invitation to an Algerian Consulate.
A consular visa with a multiple re-entry permit, may now be obtained for periods of the three months, six months, one year or two years.
Stay cannot exceed 90 days in length, while the accumulated length of time spent in Algeria cannot exceed 180 days per year.
Two types of visas are issued :
a. The Business visa : issued to a foreigner in possession of a letter of invitation from his Algerian partner, a letter of employment or an assignment order from the organization hiring the visa applicant and a hotel reservation or proof that the organization extending the invitation will take care of the applicant.
b. The Working Visa : issued to the foreigner in possession of an employment contact and a temporary authorization to work issued prior to the working permit by the relevant authorities in charge matters pertaining to employment, as well as a certificate of the hiring organization stamped by authorities.
This temporary working visa also being be to foreigner in possession of an assistance or service contract.
For a resident card, a birth certificate, a family register an a certificate of employment if the person has an employment contract in Algeria or the articles of incorporation, in the case of a company must be submitted to the consulate, which then proceeds the registration.
Upon entering the country, the traveler benefits from an exemption of duties and taxes, for goods and objects for personal use that he or she might need during his or her stay, with the exception of merchandise imported for commercial purposes.
The traveler may import, without any limitation as to the amount, banknotes or other means of payment. The traveler is required however, to declare in writing on a folded form, the banknotes, valuables and other means of payment imported on the Algeria territory.
After completing customs formalities, the foreign traveler is required to conduct foreign exchange transactions in banking agencies during his or her stay in Algeria. The details of the those transactions must be written on flap of the currency declaration form. This form, as well as the foreign exchange transaction receipts, can be checked upon exiting the territory.
Foreign nationals working in Algeria must also hold a work permit or temporary work authorization issued by the labor inspection services of the relevant wilayas (administrative department).
2. Conditions Of Entry, Stay And Movement Of Foreigners
A law dated 25 June 2008 has been published aimed at defining the conditions for entry, stay and movement of foreigners in Algeria, subject to international convetions or agreements of reciprocity
- General Provison
All individuals with a nationality that is not Algerian, or without nationality, are considered foreigners. They must, with regard to their stay, possess a valid travel document and a valid visa, and where appropriate, administrative authorizations.
The minimum period of validity required for the above mentioned is six (6) months. A foreigner must leave the Algerian territory upon the expiration of the validity of his visa or resident card, or the legal duration of the authorized stay in Algeria territory. The foreign resident must return the residence card to the wilaya that issued it.
- Conditions Of Entry and Exit of Foreigners
All foreigners arriving on Algeria territory are required to report to the competent authorities responsible for border control, with a passport issued by state his nationality or any other valid doucument recognized by the Algeria state as a valid travel document and accompanied, where appropriate, by the required visa issued by the competent authorities and a record of health in accordance with international regulations.
1.The maximum validity of a visa granting authorization to enter Algeria territory is two (2) years.
2.The maximum stay allowed at each entrance in Algeria territory is ninety (90) days
- Conditions Of Stay For Non Residents
Foreigners in transit through Algeria territory or staying for a period not exceeding ninety (90) days, with no intention to establish residence or to exercise a professional activity or employment is considered Non Residents.
The following benefit from visa exemptions :
1. Foreigners on board vessels calling at a port in Algeria
2. Foreigners seamen on leave in the service of a ship calling at a port in Algeria in accordance with maritime conventions ratified by Algeria
3. Foreigners in transit through Algeria territory by air
4. Foreigners crew members of an aircraft calling at an airport in Algeria
5. Foreigners qualifying for the provisions of international conventions or agreements of reciprocity in the matter.
A transit visa for a maximum of seven (7) days may be issued to foreigners transiting through Algerian territory, holding a visa for the country of destination and providing proof of sufficient means of subsistence for the duration of their transit.
- Conditions Of Residence For Foreigners
Foreigners who wishing to establish their actual, habitual and permanent residence in Algeria and have been authorized by means of the residence card with two (2) years validity issued by the wilaya or residence are considered Residents.
Except in the case of reciprocal arrangements, the resident card is required at the age of eighteen (18) years. The foreign employee receives a residence permit whose validity cannot exceed that of the document authorizing them to work. The delivery of the residence card shall be subject to payment by the recipient of a stamp duty set by the Finance Act. A resident card valid for ten (10) years may be issued to a foreign national who has resided in Algeria for continuous and legal for a period of seven (7) years or more, with his/her children who have reached the age of eighteen (18) years.
The renewal of the residence permit may be granted for students and foreign workers employed on the basis of legally required documents.
Any foreigner wishing to reside in Algeria and engage in gainful employment, may receive a residence permit only if they hold one of the following documents;
1. a working permit
2. a temporary working permit
3. a statement of employment of foreign workers for foreigners not subject to work permit
Any foreigner who wishes to extend his stay in Algeria, beyond the duration of the visa, in order to establish habitual residence should apply for a residence card, fifteen (15) days before the expiry of the visa.
A foreign resident who is absent from the Algeria territory for continuous period of one (1) year, ceases to be a resident.
The residence card may be withdrawn at any time from its holder if it has definitively been established that he has ceased to fulfil any of the requirements for the award.
The residence card may also be witdrawn from a foreign resident whose activities are considered by authorities as being contrary to public morals and tranquility or prejudicial to national interest or that led to a conviction for acts in connection with such activities.
In this case, the expulsion of the alien is immediate upon completion of the appropriate administrative or judicial procedures.
- Conditions For Movement Of Foreigners
The foreigner may move freely within the Algerian territory without disturbing public tranquility, in compliance with the provisions of this law and the laws of the Republic.
When a foreigner legally established in Algeria changes his residence permanently for a period exceeding six (6) months, he must report to the police, the gendarmerie or the district authorities of both the old and new residences.
- Declaration Of Employment And Accomodation For Foreigners
Any individual or legal entity that employs a foreigner, for any reason whatsoever, is reqired to declare it within forty-eight (48) hours to the Ministry of Employment with the relevant territorial jurisdiction or failing which, the district of the place of recruitment, the national police, or gendarmerie with the relevant territorial jurisdiction.
The same formalities shall be performed when employment relation cease.
Any professional or ordinary landlord who houses a stranger in whatever capacity, is required to declare it to the Police or to the National Gendarmerie or the district in which the leased property is located with twenty-four (24) hours.
- Expulsion And Escort To The Border
The expulsion of a foreigner outside Algeria territory may be declared by decree of the Minister of the Interior in the following cases;
1. where the authorities believe his presence in Algeria is a threat to public order and / or security of the state
2. when he/she has faced a trial or a final court decision, including a custodial sentence for a criminal offence
3. when he/she did not leave the Algeria territory, within the time allotted to him/her in accordance with the provision of this law, unless he justifies his delay was due to force majeure
- Penalties
Housing a foreigner and failing to make the above-mentioned declataion concerning the professional or ordinary landlord is punishable by a fine of 5.000 to 20.000 dinars.
A foreigner refusing to submit documents or proof of his/her situation may be fined between 5.000 and 20.000 dinars.
A foreigner who has not declared his/her change of residence may be fined between 2.000 and 15.000 dinars.
Any foreigner evading the execution of a deportation order or an order of expulsion or after expulsion , re-crossing the border again without authorization and re-entering Algeria territory, is liable for imprisonment of two (2) years to five (5) years, unless he proves that he cannot return to his home country or go in a third country in accordance with provisions of international conventions governing the status of refugees and stateless persons.
The direct or indirect facilitation or attempt to facilitate the entry, movement through, residence in and exit from Algeria territory of a foreigner in an illegal manner, is punishable by imprisonment of two (2) to five (5) years and a fine of 60.000 to 200.000 dinars.
The act of contracting a marriage, for the sole purpose of obtaining or aiding to obtain a residence card, or for the sole purpose acquiring the Algerian nationality is punishable by imprisonment of two (2) years to five (5) years and a fine of 50.000 to 500.000 dinars.
A foreigner contracting a marriage for the same purposes with another foreign resident is liable to similar penalties.
When the offence is committed by an organized group, the penalty is increased to ten (10) years imprisonment and a fine of 500.000 to 2.000.000 dinars. The authors also face confiscation of all or part of the their property. Legal entities may be declared criminally liable in accordance with the provisons of the Penal Code.
Recruitment Condition
- In The Private Economic Sector
The employer may hire foreign workers if there are no skilled Algeria workers of the same level.
In principle, only foreign workers at the level technician can be hired. However, workers from countries that have concluded treaties with Algeria and those enjoying the status of political refugee can work in Algeria. However, there are exceptions linked to the nature of the activities. In order to work and reside in Algeria., the foreign worker must obtain a permit or a temporary work authorization and a resident card upon presentation of a work permit. The length of the working permit is two (2) years with the possibility of renewal. Application for residence cards must be sent to the police station with territorial jurisdiction and must be accompanied with copies of the passport, the work contract, the accommodation certificate, as well as photos and revenue stamps. The length of the residence card will be that of the work contract.
When the contract is terminated, the employer is required to inform the competent national employment authorities within 48 hours. The employer is also required to make a list of the names of his foreignemployees in the first quarter of each year.
- In The Public Service Sector
National and local public services may hire foreign employees on a contractual basi. These employees are essentially high level teachers and instructors. The initial contract is for a maximum of 2 years and may be renewed several times for a maximum of one year at a time. The personnel thus hired is subject to the supervision of Algerian authorities in the exercise of their functions and may not take part in political activities. The personnel thus hired is subject to the supervision of Algeria authorities in the exircise of their functions and may not take part in political activities. They benefit from the same rights and are subject to the same obligations as their Algeria colleagues.
3. Taxes
According to Algeria tax laws, the fiscal domicile of the following persons is in Algeria :
- Foreign nationals who possess housing in Algeria for a period of at least one (1) year.
- Persons who receive earnings or revenues whose taxation is assigned to Algeria by an international treaty pertaining to double taxation.
- For salaried workers, in the case of :
a. A foreign enterprise that does not have a permanent professional establishment in Algeria, but which employs foreign salaried workers, the firm must, when paying taxable salaries and indemnities, make a deduction at source. The deduction is set at 20%, in the case of technical and executive staff exercising in certain sectors (such as hydrocarbons, iron and mills, pharmaceuticals and medical devices, and tourism), if they have gross minimum monthly revenues of 80.000 DZD.
b. A company incorporated under Algeria law or a foreign enterprise with permanent facilities in Algeria. The enterprise also makes a deduction at source on the salary of salaried workers, based on the schedule in effect for local salaried workers.
4. Repatriation Of Salaries
The foreign worker who wishes to have the right to have his salary transferred must hold a work permit or have a temporary work authorization and a duly executed work contract accompanied, as the case may be, by a visa of the General Directorate of the Civil Service and/or the Ministry in Charge of Labor.
The salary, divide into a transferable part and a part payable in Algeria dinars, is freely negotiated and established by a contract between the employer and the foreign worker.
The transfer of part of salary is made through a bank or financial institution, approved intermediary, or the center for postal checks at which the file should be domiciled.
The foreign worker must complete a dossier containing the following :
a. A transfer request compliant with standard model provided by the bank by a foreign worker, duly endorsed by his employer.
b. A copy of the employment contract compliant with the original.
c. A copy of the original work permit or authorization for temporary employment issued by the competent authorities or the receipt of statement for foreign workers are not subject to requirements of the work permit;
d. A standard form detailing the transferable and non transferable shares of wages.
The transfer request is made by the employee and covered by his employer, according to a regulatory model. The transfer can occur form any post office or approved bank.
5. Social Security
Outside of treaties, expatriate salaried workers are subject to Algerian legislation and their employers make deductions at source as they would for Algerian salaried workers.
Treaties have been signed with certain countries such as Belgium, Tunisia, Romania and France. These treaties enable seconded workers to remain affiliated to the social security fund that was covering them, for a period to time strictly defined by the treaties.
(Rahman Sadikin, SE/Manajer keuangan dan Administrasi)
