Doing Business 2019 Algeria Economy Profile Algeria Page 1 Doing Business 2019 Algeria Economy Profile of Algeria Doing Business 2019 Indicators (in order of appearance in the document) Starting a business Procedures, time, cost and paid-in minimum capital to start a limited liability company Dealing with construction permits Procedures, time and cost to complete all formalities to build a warehouse and the quality control and safety mechanisms in the construction permitting system Getting electricity Procedures, time and cost to get connected to the electrical grid, and the reliability of the electricity supply and the transparency of tariffs Registering property Procedures, time and cost to transfer a property and the quality of the land administration system Getting credit Movable collateral laws and credit information systems Protecting minority investors Minority shareholders’ rights in related-party transactions and in corporate governance Paying taxes Payments, time, total tax and contribution rate for a firm to comply with all tax regulations as well as post-filing processes Trading across borders Time and cost to export the product of comparative advantage and import auto parts Enforcing contracts Time and cost to resolve a commercial dispute and the quality of judicial processes Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the legal framework for insolvency Labor market regulation Flexibility in employment regulation and aspects of job quality Page 2 Doing Business 2019 Algeria About Doing Business The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected cities at the subnational and regional level. The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying to them through their life cycle. Doing Business captures several important dimensions of the regulatory environment as it applies to local firms. It provides quantitative indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market regulation indicators or include the topic in the aggregate ease of doing business score or ranking on the ease of doing business, it does present the data for these indicators. By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time, Doing Business encourages economies to compete towards more efficient regulation; offers measurable benchmarks for reform; and serves as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy. In addition, Doing Business offers detailed subnational reports, which exhaustively cover business regulation and reform in different cities and regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region and with the 190 economies that Doing Business has ranked. The first Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation and the United States) where Doing Business also collected data for the second largest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. The project has benefited from feedback from governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving the regulatory environment for business around the world. More about Doing Business (PDF, 5MB) Page 3 Doing Business 2019 Algeria Ease of Doing Business in Region Middle East & North Africa DB 2019 Rank 190 1 Algeria Income Category Upper middle income 157 DB 2019 Ease of doing business score Population 41,318,142 0 100 City Covered Algiers 49.65 DB 2019 Ease of Doing Business Score 0 100 77.29: France (Rank: 32) 71.02: Morocco (Rank: 60) 58.56: Egypt, Arab Rep. (Rank: 120) 58.30: Regional Average (Middle East & North Africa) 54.04: Lebanon (Rank: 142) 49.65: Algeria (Rank: 157) Note: The ease of doing business score captures the gap of each economy from the best regulatory performance observed on each of the indicators across all economies in the Doing Business sample since 2005. An economy’s ease of doing business score is reflected on a scale from 0 to 100, where 0 represents the lowest and 100 represents the best performance. The ease of doing business ranking ranges from 1 to 190. Rankings on Doing Business topics - Algeria 1 28 55 76 82 Rank 106 112 109 129 136 150 156 165 168 163 173 178 190 Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Investors Borders Permits Ease of Doing Business Score on Doing Business topics - Algeria 100 78.07 80 69.58 63.28 Score 60 53.91 54.78 49.24 44.26 38.43 40 35.00 20 10.00 0 Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Investors Borders Permits Page 4 Doing Business 2019 Algeria Starting a Business This topic measures the number of procedures, time, cost and paid-in minimum capital requirement for a small- to medium-sized limited liability company to start up and formally operate in each economy’s largest business city. To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically owned, has start-up capital equivalent to 10 times the income per capita, engages in general industrial or commercial activities and employs between 10 and 50 people one month after the commencement of operations, all of whom are domestic nationals. Starting a Business considers two types of local limited liability companies that are identical in all aspects, except that one company is owned by 5 married women and the other by 5 married men. The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a business. These scores are the simple average of the scores for each of the component indicators. The most recent round of data collection for the project was completed in May 2018. See the methodology for more information. What the indicators measure Case study assumptions Procedures to legally start and formally operate To make the data comparable across economies, several assumptions about the a company (number) business and the procedures are used. It is assumed that any required information is readily available and that the entrepreneur will pay no bribes. • Preregistration (for example, name verification or reservation, notarization) The business: • Registration in the economy’s largest business - Is a limited liability company (or its legal equivalent). If there is more than one type city of limited liability company in the economy, the most common among domestic firms • Postregistration (for example, social security is chosen. Information on the most common form is obtained from incorporation registration, company seal) lawyers or the statistical office. - Operates in the economy’s largest business city. For 11 economies the data are • Obtaining approval from spouse to start a also collected for the second largest business city. business or to leave the home to register the - The entire office space is approximately 929 square meters (10,000 square feet). company - Is 100% domestically owned and has five owners, none of whom is a legal entity; • Obtaining any gender specific document for has a start-up capital of 10 times income per capita and has a turnover of at least company registration and operation or national 100 times income per capita. identification card - Performs general industrial or commercial activities, such as the production or sale of goods or services to the public. The business does not perform foreign trade Time required to complete each procedure activities and does not handle products subject to a special tax regime, for example, (calendar days) liquor or tobacco. It does not use heavily polluting production processes. • Does not include time spent gathering - Leases the commercial plant or offices and is not a proprietor of real estate and the information amount of the annual lease for the office space is equivalent to the income per capita. • Each procedure starts on a separate day (2 - Does not qualify for investment incentives or any special benefits. procedures cannot start on the same day) - Has at least 10 and up to 50 employees one month after the commencement of • Procedures fully completed online are recorded operations, all of whom are domestic nationals. as ½ day - Has a company deed that is 10 pages long. • Procedure is considered completed once final The owners: document is received - Have reached the legal age of majority. If there is no legal age of majority, they are • No prior contact with officials assumed to be 30 years old. Cost required to complete each procedure (% of - Are sane, competent, in good health and have no criminal record. income per capita) - Are married and the marriage is monogamous and registered with the authorities. - Where the answer differs according to the legal system applicable to the woman or • Official costs only, no bribes man in question (as may be the case in economies where there is legal plurality), the • No professional fees unless services required by answer used will be the one that applies to the majority of the population. law or commonly used in practice Paid-in minimum capital (% of income per capita) • Funds deposited in a bank or with third party before registration or up to 3 months after incorporation Page 5 Doing Business 2019 Algeria Starting a Business - Algeria Standardized Company Legal form Société à Responsabilité Limitée (SARL) - Limited Liability Company Paid-in minimum capital requirement DZD 0 City Covered Algiers Indicator Algeria Middle East & OECD high Best Regulatory North Africa income Performance Procedure – Men (number) 12 7.2 4.9 1 (New Zealand) Time – Men (days) 17.5 20.5 9.3 0.5 (New Zealand) Cost – Men (% of income per capita) 11.8 22.6 3.1 0.0 (Slovenia) Procedure – Women (number) 12 7.9 4.9 1 (New Zealand) Time – Women (days) 17.5 21.2 9.3 0.5 (New Zealand) Cost – Women (% of income per capita) 11.8 22.6 3.1 0.0 (Slovenia) Paid-in min. capital (% of income per capita) 0.0 8.1 8.6 0.0 (117 Economies) Figure – Starting a Business in Algeria and comparator economies – Ranking and Score DB 2019 Starting a Business Score 0 100 93.27: France (Rank: 30) 92.99: Morocco (Rank: 34) 84.11: Egypt, Arab Rep. (Rank: 109) 82.00: Regional Average (Middle East & North Africa) 78.63: Lebanon (Rank: 146) 78.07: Algeria (Rank: 150) Note: The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a business. These scores are the simple average of the scores for each of the component indicators. Page 6 Doing Business 2019 Algeria Figure – Starting a Business in Algeria – Procedure, Time and Cost Time (days) Cost (% of income per capita) 6 16 Cost (% of income per capita) 5 14 12 4 Time (days) 10 3 8 6 2 4 1 2 0 0 1 2 3 4 5 6 *7 8 9 10 11 12 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology). For details on the procedures reflected here, see the summary below. Page 7 Doing Business 2019 Algeria Details – Starting a Business in Algeria – Procedure, Time and Cost No. Procedures Time to Complete Associated Costs 1 Obtain an attestation of the uniqueness of the company name 1 day DA 800 Agency : Commercial Registry (Centre National du Registre du Commerce, CNRC) The applicant must fill out a form, listing the four proposed company names, and pay a fee for the name search and the fiscal stamp. The Commercial Registry (Centre National du Registre du Commerce, CNRC) conducts a name search and issues a name certificate on the same day. Since February 2015, the uniqueness of the company name can be checked online through the portal www.cnrc.org.dz. Although the search and the reservation can be done online, business founders typically conduct these tasks in-person at the CNRC. 2 Deposit the start-up capital through a notary public 1 day no charge Agency : Bank The entrepreneur deposits the capital in the public treasury and obtains a deposit certificate before drawing up the statues. 3 Obtain the birth certificate of the manager 1 day no charge Agency : Municipality A copy of the business manager's birth certificate is required for notarization. It can be obtained at the Municipality. 4 Notarize the company deeds and submit a specimen of managers’ 5 days see comments signatures and a lease for the registered office Agency : Notary Office Business founders must complete the following procedures with a notary: draw up and notarize the company's constitution documents, submit a specimen of managers’ signatures, and prepare and submit the lease for the registered office of the company. According to Executive Decree n° 08-243, notary fees are: -5% if the company capital is between DA 1 - 200,000, -1% if the company capital is between DA 200,001 - 300,000, -0.7% if the company capital is between DA 300,001 - 400,000, -0.6% if the company capital is between DA 400,001 - 500,000, -0.5% if the company capital is between DA 500,001 - 1,000,000, -0.5% if the company capital is DA 1,000,000 and above. 5 Publish a notice of company incorporation at the legal journal (Bulletin Less than one day DA 3,000 per page + Officiel des Annonces légales, BOAL) (online procedure) DA 55 for publication Agency : Commercial Registry (Centre National du Registre du Commerce, rights CNRC) A notice of company incorporation must be published at the Official Bulletin of Legal Announcements (BOAL). The publication can be requested online through a notary's account at https://sijdilcom.cnrc.dz/. The cost for the online publication is DA 3,000 per page + DA 55 for publication rights per page. Two pages must be published, in French and Arabic. 6 Apply for company registration at the Commercial Registry 2 days see comments Agency : Commercial Registry (Centre National du Registre du Commerce, CNRC) Entrepreneurs must register the company before the Commercial Registry. This must be done within two months of the formation of the company and it can be done online, while it is most common to apply in person. According to Law No. 04-08 (April 14, 2004), registration is completed within 1 day. However, in practice it still takes 2 days to obtain the final registration certificate. Registration fees are as follows: - DA 9,472 if the company capital is between DA 30,001 and DA 100,000 - DA 9,872 if the company capital is between DA 100,001 and DA 300,000 - DA 10,112 if the company capital is more than DA 300,000 7 Pay the stamp duty and obtain a receipt 1 day DA 4,000 Agency : Tax Authority and Commercial Registry (Centre National du Registre du (simultaneously with Commerce, CNRC) previous procedure) One must pay for the stamp duty. Fiscal stamps are sealed at the fiscal administration. Other stamps are paid at the CNRC. Page 8 Doing Business 2019 Algeria 8 Register for Income tax, Corporate tax and VAT with the local tax 2 days no charge inspectorate Agency : Tax Authority The entrepreneur must register for Income tax (Impôt sur le revenu global des personnes physiques, IRG), Corporate tax (Impôt sur les bénéfices des personnes morales ou des sociétés, IBS), and VAT. Upon registration, the Tax Authority shall issue a certificate of existence between 2 and 5 days and a tax card (magnetic card) within a minimum period of 30 days (loi n° 05-16 du 31 décembre 2005 portant loi de finances pour 2006 (JO n° 85 du 31 décembre 2005)). 9 Register at the National Health Insurance Authority (CNAS) 1 day no charge Agency : National Health Insurance Authority (Caisse Nationale des Assurances Sociales des Travailleurs Salariés, CNAS) Employees must be registered by the new company before the Caisse Nationale des Assurances Sociales des Travailleurs Salariés (CNAS), which receives employee declarations. The employer must report any new employee to the relevant authority within 10 days of hiring. 10 Register at the National Non-Salary Workers' Social Security Fund 1 day no charge (CASNOS) Agency : National Non-Salary Workers' Social Security Fund (Caisse Nationale de Sécurité Sociale des Non Salariés, CASNOS) Business founders must register before the Caisse Nationale de Sécurité Sociale des Non Salariés (CASNOS), which receives and register employer declarations. 11 Make a company seal 2 days DA 1,800 Agency : Private sector A company seal must be obtained. The cost of obtaining a company seal depends on the type of seal, its quality and the price established by the private seal maker. 12 Have the company’s accounting books stamped at the court 1 day DA 8,000 Agency : Court The accounting and inventory books must be stamped when the company starts its business activity. Takes place simultaneously with previous procedure. Page 9 Doing Business 2019 Algeria Dealing with Construction Permits This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all required notifications, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional certification requirements. The most recent round of data collection was completed in May 2018. See the methodology for more information What the indicators measure Case study assumptions Procedures to legally build a warehouse To make the data comparable across economies, several assumptions about the (number) construction company, the warehouse project and the utility connections are used. • Submitting all relevant documents and obtaining The construction company (BuildCo): all necessary clearances, licenses, permits and certificates - Is a limited liability company (or its legal equivalent) and operates in the economy’s largest business city. For 11 economies the data are also collected for the second • Submitting all required notifications and receiving largest business city. all necessary inspections - Is 100% domestically and privately owned; has five owners, none of whom is a • Obtaining utility connections for water and legal entity. Has a licensed architect and a licensed engineer, both registered with sewerage the local association of architects or engineers. BuildCo is not assumed to have any other employees who are technical or licensed experts, such as geological or • Registering and selling the warehouse after its topographical experts. completion - Owns the land on which the warehouse will be built and will sell the warehouse Time required to complete each procedure upon its completion. (calendar days) The warehouse: • Does not include time spent gathering - Will be used for general storage activities, such as storage of books or stationery. information - Will have two stories, both above ground, with a total constructed area of • Each procedure starts on a separate day— approximately 1,300.6 square meters (14,000 square feet). Each floor will be 3 though procedures that can be fully completed meters (9 feet, 10 inches) high and will be located on a land plot of approximately online are an exception to this rule 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the • Procedure is considered completed once final warehouse is valued at 50 times income per capita. document is received - Will have complete architectural and technical plans prepared by a licensed architect. If preparation of the plans requires such steps as obtaining further • No prior contact with officials documentation or getting prior approvals from external agencies, these are counted as procedures. Cost required to complete each procedure (% of - Will take 30 weeks to construct (excluding all delays due to administrative and income per capita) regulatory requirements). • Official costs only, no bribes The water and sewerage connections: Building quality control index (0-15) - Will be 150 meters (492 feet) from the existing water source and sewer tap. If there • Quality of building regulations (0-2) is no water delivery infrastructure in the economy, a borehole will be dug. If there is no sewerage infrastructure, a septic tank in the smallest size available will be • Quality control before construction (0-1) installed or built. • Quality control during construction (0-3) - Will have an average water use of 662 liters (175 gallons) a day and an average • Quality control after construction (0-3) wastewater flow of 568 liters (150 gallons) a day. Will have a peak water use of 1,325 liters (350 gallons) a day and a peak wastewater flow of 1,136 liters (300 • Liability and insurance regimes (0-2) gallons) a day. • Professional certifications (0-4) - Will have a constant level of water demand and wastewater flow throughout the year; will be 1 inch in diameter for the water connection and 4 inches in diameter for the sewerage connection. Page 10 Doing Business 2019 Algeria Dealing with Construction Permits - Algeria Standardized Warehouse Estimated value of warehouse DZD 22,557,333.40 City Covered Algiers Indicator Algeria Middle East & OECD high Best Regulatory North Africa income Performance Procedures (number) 19 16.6 12.7 None in 2017/18 Time (days) 136 137.4 153.1 None in 2017/18 Cost (% of warehouse value) 7.8 4.7 1.5 None in 2017/18 Building quality control index (0-15) 12.0 12.1 11.5 15.0 (3 Economies) Figure – Dealing with Construction Permits in Algeria and comparator economies – Ranking and Score DB 2019 Dealing with Construction Permits Score 0 100 79.94: Morocco (Rank: 18) 79.30: France (Rank: 19) 71.77: Egypt, Arab Rep. (Rank: 68) 63.28: Algeria (Rank: 129) 59.17: Regional Average (Middle East & North Africa) 52.69: Lebanon (Rank: 170) Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their scores for dealing with construction permits. These scores are the simple average of the scores for each of the component indicators. Figure – Dealing with Construction Permits in Algeria – Procedure, Time and Cost Time (days) Cost (% of warehouse value) 7 120 6 Cost (% of warehouse value) 100 5 Time (days) 80 4 60 3 40 2 20 1 0 0 1 *2 *3 4 5 6 7 8 9 10 11 12 13 14 * 15 * 16 * 17 * 18 * 19 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology). For details on the procedures reflected here, see the summary below. Page 11 Doing Business 2019 Algeria Figure – Dealing with Construction Permits in Algeria and comparator economies – Measure of Quality 15 14.0 14.0 13.0 13.0 12.0 12.1 Index score 10 5 0 Algeria Egypt, Arab Rep. France Lebanon Morocco Middle East & North Africa Details – Dealing with Construction Permits in Algeria – Procedure, Time and Cost No. Procedures Time to Complete Associated Costs 1 Obtain a geotechnical study/soil test 20 days DZD 1,350,000 Agency : Private firm A geotechnical study (soil test) is needed by the engineer to establish the way the foundations of the building will be set. The cost will depend on the nature of the soil and the number of pits needed. 2 Obtain an urban certificate 14 days no charge Agency : Municipal Authority (Autorité Municipale) An urban certificate is not a legal requirement to obtain a construction permit. However, in practice it is required by the architect so that the plans are drawn according to the specificities of this plot of land. The owner will make the request to obtain the urban certificate for this plot of land and will receive it in about one week by mail. 3 Obtain a topographical survey 3 days DZD 125,000 Agency : Private Firm A topographical survey has always been a requirement to establish the building plans. 4 Obtain building permit 60 days DZD 220,603 Agency : Municipal Authority (Autorité Municipale) The complete application is submitted in 5 copies to the Assemblée Populaire Communal (APC) at the city level. The application is first approved by the city and then transmitted to the DUCH at the Wilaya level. The DUCH (direction de l’urbanisme de la construction et de l’habitat) at the Wilaya (county) level centralizes all building permit requests submitted at the city level and issues a technical opinion (avis technique) after consultation with other technical government agencies: SONELGAZ, forests, civil protection, health, environment, etc. (exact list depends on the type of project). The documents required are: • Acte de propriété (property deed) • Plans of the project prepared by a certified architect and certified engineer for the génie civil section. Drawings of the structure • Extrait cadastral (or plan du lotissement where applicable). Extrait cadastral in Rouiba • Preliminary agreement from utility companies. Authorization for temporary connection during the construction • Dessins du systeme d’egout Construction permits are valid 3 years. If the construction has not been built within this time frame, the builder must apply for a new one. 5 Inform Municipality of commencement of work 1 day no charge Agency : Municipal Authority (Autorité Municipale) It is mandatory to inform the Municipality of the commencement of work as well as of the expected date of completion. Page 12 Doing Business 2019 Algeria 6 Receive inspection for the first earthworks 1 day no charge Agency : Controle Tecnique de la Construction The Technical Agency, an independent technical agency, verifies every major step of advancement of the structure (“réceptionne ou vise”): there are on average 5 to 8 inspections per construction. They control the structure and safety issues. They inspect at each key stage of the construction: • Verification of the quality of the soil • First earthworks • Excavation inspection • Laying of the foundations • Installation of the concrete slab In general only urbanism and civil protection will inspect; no other agency conducts an inspection. 7 Receive excavation inspection 1 day no charge Agency : Controle Tecnique de la Construction 8 Receive foundation inspection 1 day no charge Agency : Controle Tecnique de la Construction 9 Receive concrete pouring inspection 1 day no charge Agency : Controle Tecnique de la Construction 10 Receive second concrete pouring inspection 1 day no charge Agency : Controle Tecnique de la Construction 11 Notify Municipality of completion of construction 1 day no charge Agency : Contrôle Technique de la Construction BuildCo inform the Municipality of the end of construction 12 Request and receive final inspection to obtain certificate of conformity 1 day no charge Agency : Controle Tecnique de la Construction When the warehouse is completed, BuildCo must notify the municipality so that it can make a final inspection of the construction. The following documents must be included in the request: • Statement of Completion in duplicate against a receipt. • Notice of inspection sent eight days prior to the inspection sent by the CPAA to BuildCo • A written report (Proces Verbal) will be established by a committee comprising of all the relevant departments, including the fire department at the end of the inspection. The inspection is usually done within 2 weeks of the request. 13 Obtain certificate of conformity 23 days DZD 19,000 Agency : Sous direction de l'urbanisme de la Commune Although the law requires a certificate of conformity, it is seldom issued in practice. 14 Register the building at the Cadastre 1 day no charge Agency : Municipal Authority (Autorité Municipale) Before the building can be used as collateral, banks require the property title and the construction license. This case study assumes that BuildCo already possesses a construction license. Apply for water and sewage connection 1 day no charge 15 Agency : Société des Eaux et de l'Assainissement d'Alger (SEAAL) Notify municipal/communal authority of connection to sewer mains 1 day DZD 15,000 16 Agency : Municipal/communal authority (Autorité municipale/communale) When the application for a building permit is submitted, there is a set of plans for utilities which are sent to utility companies for verification. If the utility companies do not approve these plans, the building permit will be delayed until all plans are corrected. Obtain inspection for water connection cost estimate 1 day no charge 17 Agency : Société des Eaux et de l'Assainissement d'Alger (SEAAL) The Customer Service department will send a team to do a technical and financial study of the work to be done. The cost estimate is given to the client and payment must be made before the work is done. Page 13 Doing Business 2019 Algeria Obtain sewage connection 21 days DZD 13,000 18 Agency : Société des Eaux et de l'Assainissement d'Alger (SEAAL) A site visit is sometimes required to prepare the estimate. Obtain water connection 18 days DZD 25,000 19 Agency : Société des Eaux et de l'Assainissement d'Alger (SEAAL) Takes place simultaneously with previous procedure. Page 14 Doing Business 2019 Algeria Details – Dealing with Construction Permits in Algeria – Measure of Quality Answer Score Building quality control index (0-15) 12.0 Quality of building regulations index (0-2) 2.0 How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0 Free of charge; In official gazette. Which requirements for obtaining a building permit are clearly specified in the building List of required 1.0 regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Fees to be paid; Required preapprovals. Quality control before construction index (0-1) 1.0 Which third-party entities are required by law to verify that the building plans are in Licensed 1.0 compliance with existing building regulations? (0-1) architect; Licensed engineer. Quality control during construction index (0-3) 2.0 What types of inspections (if any) are required by law to be carried out during construction? Inspections at 1.0 (0-2) various phases. Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 1.0 inspections are always done in practice; Inspections are not mandated by law but commonly occur in practice during construction. Quality control after construction index (0-3) 3.0 Is there a final inspection required by law to verify that the building was built in accordance Yes, final 2.0 with the approved plans and regulations? (0-2) inspection is done by government agency. Do legally mandated final inspections occur in practice? (0-1) Final inspection 1.0 always occurs in practice. Liability and insurance regimes index (0-2) 2.0 Which parties (if any) are held liable by law for structural flaws or problems in the building Architect or 1.0 once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) engineer; Construction company. Which parties (if any) are required by law to obtain an insurance policy to cover possible Architect or 1.0 structural flaws or problems in the building once it is in use (Latent Defect Liability Insurance engineer; or Decennial Insurance)? (0-1) Construction company. Professional certifications index (0-4) 2.0 What are the qualification requirements for the professional responsible for verifying that the Minimum number 2.0 architectural plans or drawings are in compliance with existing building regulations? (0-2) of years of experience; University degree in architecture or engineering; Being a registered architect or engineer. Page 15 Doing Business 2019 Algeria What are the qualification requirements for the professional who supervises the construction University degree 0.0 on the ground? (0-2) in engineering, construction or construction management. Page 16 Doing Business 2019 Algeria Getting Electricity This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse. Additionally, the reliability of supply and transparency of tariffs index measures reliability of supply, transparency of tariffs and the price of electricity. The most recent round of data collection for the project was completed in May 2018. See the methodology for more information. What the indicators measure Case study assumptions Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions about the (number) warehouse, the electricity connection and the monthly consumption are used. • Submitting all relevant documents and obtaining The warehouse: all necessary clearances and permits - Is owned by a local entrepreneur and is used for storage of goods. • Completing all required notifications and - Is located in the economy’s largest business city. For 11 economies the data are receiving all necessary inspections also collected for the second largest business city. • Obtaining external installation works and possibly - Is located in an area where similar warehouses are typically located and is in an purchasing material for these works area with no physical constraints. For example, the property is not near a railway. - Is a new construction and is being connected to electricity for the first time. • Concluding any necessary supply contract and - Has two stories with a total surface area of approximately 1,300.6 square meters obtaining final supply (14,000 square feet). The plot of land on which it is built is 929 square meters Time required to complete each procedure (10,000 square feet). (calendar days) The electricity connection: • Is at least 1 calendar day - Is a permanent one with a three-phase, four-wire Y connection with a subscribed • Each procedure starts on a separate day capacity of 140-kilo-volt-ampere (kVA) with a power factor of 1, when 1 kVA = 1 kilowatt (kW). • Does not include time spent gathering information - Has a length of 150 meters. The connection is to either the low- or medium-voltage distribution network and is either overhead or underground, whichever is more • Reflects the time spent in practice, with little common in the area where the warehouse is located and requires works that involve follow-up and no prior contact with officials the crossing of a 10-meter road (such as by excavation or overhead lines) but are all carried out on public land. There is no crossing of other owners’ private property Cost required to complete each procedure (% of because the warehouse has access to a road. income per capita) - Does not require work to install the internal wiring of the warehouse. This has • Official costs only, no bribes already been completed up to and including the customer’s service panel or switchboard and the meter base. • Value added tax excluded The reliability of supply and transparency of The monthly consumption: tariffs index (0-8) - It is assumed that the warehouse operates 30 days a month from 9:00 a.m. to 5:00 • Duration and frequency of power outages (0–3) p.m. (8 hours a day), with equipment utilized at 80% of capacity on average and that there are no electricity cuts (assumed for simplicity reasons) and the monthly energy • Tools to monitor power outages (0–1) consumption is 26,880 kilowatt-hours (kWh); hourly consumption is 112 kWh. • Tools to restore power supply (0–1) - If multiple electricity suppliers exist, the warehouse is served by the cheapest supplier. • Regulatory monitoring of utilities’ performance (0–1) - Tariffs effective in January of the current year are used for calculation of the price of electricity for the warehouse. Although January has 31 days, for calculation • Financial deterrents limiting outages (0–1) purposes only 30 days are used. • Transparency and accessibility of tariffs (0–1) Price of electricity (cents per kilowatt-hour)* • Price based on monthly bill for commercial warehouse in case study *Note: Doing Business measures the price of electricity, but it is not included in the ease of doing business score nor the ranking on the ease of getting electricity. Page 17 Doing Business 2019 Algeria Getting Electricity - Algeria Standardized Connection Price of electricity (US cents per kWh) 2.2 Name of utility SONELGAZ (via filiale Société de Distribution de l'électricité et gaz d'Alger (SDA)) City Covered Algiers Indicator Algeria Middle East & OECD high Best Regulatory North Africa income Performance Procedures (number) 5 4.7 4.5 3 (25 Economies) Time (days) 93 72.4 77.2 18 (3 Economies) Cost (% of income per capita) 1478.3 479.9 64.2 0.0 (3 Economies) Reliability of supply and transparency of tariff 5 4.2 7.5 8.0 (27 Economies) index (0-8) Figure – Getting Electricity in Algeria and comparator economies – Ranking and Score DB 2019 Getting Electricity Score 0 100 92.01: France (Rank: 14) 81.34: Morocco (Rank: 59) 71.41: Egypt, Arab Rep. (Rank: 96) 69.58: Algeria (Rank: 106) 69.45: Regional Average (Middle East & North Africa) 62.75: Lebanon (Rank: 124) Note: The ranking of economies on the ease of getting electricity is determined by sorting their scores for getting electricity. These scores are the simple average of the scores for all the component indicators except the price of electricity. Page 18 Doing Business 2019 Algeria Figure – Getting Electricity in Algeria – Procedure, Time and Cost Time (days) Cost (% of income per capita) 1000 90 80 Cost (% of income per capita) 800 70 60 Time (days) 600 50 40 400 30 20 200 10 0 0 1 2 3 4 5 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology). For details on the procedures reflected here, see the summary below. Figure – Getting Electricity in Algeria and comparator economies – Measure of Quality 8 8 7 7 6 Index score 5 5 4.2 4 3 3 2 1 0 0 Algeria Egypt, Arab Rep. France Lebanon Morocco Middle East & North Africa Page 19 Doing Business 2019 Algeria Details – Getting Electricity in Algeria – Procedure, Time and Cost No. Procedures Time to Complete Associated Costs 1 Submit application to SDA and await external site inspection 25 calendar days DZD 0 Agency : SONELGAZ (via its subsidiary "Société de Distribution de l'électricité et gaz d'Alger (SDA)") The paper version of the application must be submitted at no cost. The application form must be submitted with the following certified copies: 1) project information sheet; 2) Location map (scale 1/5000 or 1/2000); 3) electric power requirements; 4) ground plan (scale 1/500). The client signs the contract and reviews the estimate after receiving the plan of works from Société de Distribution de l'électricité et gaz d'Alger (SDA). Once the contract is signed and paid, Société de Distribution de l'électricité et gaz d'Alger (SDA) sends the request for authorization of excavation to the Public Works department of the Municipality (Direction des Travaux Publics (DTP)). The utility obtains the excavation permit from the Direction des Travaux Publics on the customer's behalf. 2 Obtain the external site inspection by the utility to receive the technical 10 calendar days DZD 0 report and estimate Agency : SONELGAZ (via its subsidiary "Société de Distribution de l'électricité et gaz d'Alger (SDA)") The technical department of the distribution department of SDA carries out a site visit to the warehouse to finalize the technical study - and prepare the estimate of the connection works. A representative of the applicant is usually present during the visit. SDA then drafts a technical study and provides an estimate of the costs. 3 Purchase electrical equipment, including the transformer, and build 10 calendar days DZD 4,000,000 substation Agency : Client's electrical contractor The customer builds and equips his delivery post under the supervision of the SDA. Recently, SDA made ready-to-use precast sub-stations units available through at least 5 local manufacturers. The customer can therefore acquire and install these items in a shorter time. The majority of customers are now using this option; while more expensive, it saves time by eliminating work time and the back-and-forth with SDA for equipment approval. 4 Await the external works and meter installation by the utility and sign 40 calendar days DZD 2,669,188.45 supply contract Agency : SONELGAZ (via its subsidiary "Société de Distribution de l'électricité et gaz d'Alger (SDA)") Once the transformer is installed, Société de Distribution de l'électricité et gaz d'Alger (SDA) starts the external works as well as installing the meter. The client must sign a supply contract and pay a deposit equivalent to one month of consumption by check or bank transfer. This deposit is reimbursed to the client at the expiration of the contract. 5 Obtain internal wiring inspection by the utility followed by electricity turn- 8 calendar days DZD 0 on Agency : SONELGAZ (via its subsidiary "Société de Distribution de l'électricité et gaz d'Alger (SDA)") The client is responsible for the internal wiring and the technical department of Société de Distribution de l'électricité et gaz d'Alger (SDA) must approve the final installation before electricity starts flowing. Takes place simultaneously with previous procedure. Page 20 Doing Business 2019 Algeria Details – Getting Electricity in Algeria – Measure of Quality Answer Reliability of supply and transparency of tariff index (0-8) 5 Total duration and frequency of outages per customer a year (0-3) 1 System average interruption duration index (SAIDI) 4.2 System average interruption frequency index (SAIFI) 8.2 What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 3.0 Mechanisms for monitoring outages (0-1) 1 Does the distribution utility use automated tools to monitor outages? Yes Mechanisms for restoring service (0-1) 1 Does the distribution utility use automated tools to restore service? Yes Regulatory monitoring (0-1) 1 Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on reliability of Yes supply? Financial deterrents aimed at limiting outages (0-1) 0 Does the utility either pay compensation to customers or face fines by the regulator (or both) if outages No exceed a certain cap? Communication of tariffs and tariff changes (0-1) 1 Are effective tariffs available online? Yes Link to the website, if available online http://www.sda.dz/Fr/ ? page=article&id=165 Are customers notified of a change in tariff ahead of the billing cycle? Yes Note: If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tariff index. If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index. If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index. Page 21 Doing Business 2019 Algeria Registering Property This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land administration system in each economy. The quality of land administration index has five dimensions: reliability of infrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for the project was completed in May 2018. See the methodology for more information. What the indicators measure Case study assumptions Procedures to legally transfer title on To make the data comparable across economies, several assumptions about the immovable property (number) parties to the transaction, the property and the procedures are used. • Preregistration procedures (for example, The parties (buyer and seller): checking for liens, notarizing sales agreement, paying property transfer taxes) - Are limited liability companies (or the legal equivalent). - Are located in the periurban area of the economy’s largest business city. For 11 • Registration procedures in the economy's largest economies the data are also collected for the second largest business city. business city. - Are 100% domestically and privately owned. • Postregistration procedures (for example, filling - Have 50 employees each, all of whom are nationals. title with municipality) - Perform general commercial activities. Time required to complete each procedure The property (fully owned by the seller): (calendar days) - Has a value of 50 times income per capita, which equals the sale price. • Does not include time spent gathering - Is fully owned by the seller. information - Has no mortgages attached and has been under the same ownership for the past 10 years. • Each procedure starts on a separate day - - Is registered in the land registry or cadastre, or both, and is free of title disputes. though procedures that can be fully completed online are an exception to this rule - Is located in a periurban commercial zone, and no rezoning is required. - Consists of land and a building. The land area is 557.4 square meters (6,000 • Procedure is considered completed once final square feet). A two-story warehouse of 929 square meters (10,000 square feet) is document is received located on the land. The warehouse is 10 years old, is in good condition, has no • No prior contact with officials heating system and complies with all safety standards, building codes and legal requirements. The property, consisting of land and building, will be transferred in its Cost required to complete each procedure (% of entirety. property value) - Will not be subject to renovations or additional construction following the purchase. - Has no trees, natural water sources, natural reserves or historical monuments of • Official costs only (such as administrative fees, any kind. duties and taxes). - Will not be used for special purposes, and no special permits, such as for • Value Added Tax, Capital Gains Tax and illicit residential use, industrial plants, waste storage or certain types of agricultural payments are excluded activities, are required. - Has no occupants, and no other party holds a legal interest in it. Quality of land administration index (0-30) • Reliability of infrastructure index (0-8) • Transparency of information index (0–6) • Geographic coverage index (0–8) • Land dispute resolution index (0–8) • Equal access to property rights index (-2–0) Page 22 Doing Business 2019 Algeria Registering Property - Algeria Indicator Algeria Middle East & OECD high Best Regulatory North Africa income Performance Procedures (number) 10 5.6 4.7 1 (4 Economies) Time (days) 55 29.7 20.1 1 (New Zealand) Cost (% of property value) 7.1 5.7 4.2 0.0 (Saudi Arabia) Quality of the land administration index (0-30) 7.5 14.2 23.0 None in 2017/18 Figure – Registering Property in Algeria and comparator economies – Ranking and Score DB 2019 Registering Property Score 0 100 67.86: Morocco (Rank: 68) 63.33: France (Rank: 96) 62.11: Regional Average (Middle East & North Africa) 59.44: Lebanon (Rank: 105) 55.00: Egypt, Arab Rep. (Rank: 125) 44.26: Algeria (Rank: 165) Note: The ranking of economies on the ease of registering property is determined by sorting their scores for registering property. These scores are the simple average of the scores for each of the component indicators. Figure – Registering Property in Algeria – Procedure, Time and Cost Time (days) Cost (% of property value) 7 50 6 Cost (% of property value) 40 5 Time (days) 4 30 3 20 2 10 1 0 0 1 *2 3 4 5 6 7 8 9 * 10 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology). For details on the procedures reflected here, see the summary below. Page 23 Doing Business 2019 Algeria Figure – Registering Property in Algeria and comparator economies – Measure of Quality 30 25 24.0 Index score 19.5 20 16.0 15 14.2 10 9.0 7.5 5 0 Algeria Egypt, Arab Rep. France Lebanon Morocco Middle East & North Africa Details – Registering Property in Algeria – Procedure, Time and Cost No. Procedures Time to Complete Associated Costs 1 Obtain a cadastral document identifying the parcel and its owner 15 days DZD 54; (34 DZD Agency : Cadaster office of the Municipality of Alger (Direction du cadastre de la (Cadastre Fee) + 20 Wilaya d’Alger, Agence Nationale du Cadastre) DZD (Stamp fee)) The notary obtains a PR4 bis extract from the Cadastre, stating the parcel number and the owner's name. Since December 2017, it is possible to request the PR4 bis online at https://www.an-cadastre.dz/#. However, the PR4 bis extract is issued in paper format. 2 Obtain a certificate of non-encumbrances from the Land Registry 7 days DZD 500 (Conservation Foncière) Agency : Local Land Registry (Conservation Foncière) The notary obtains a non-encumbrance certificate from the Land Registry (Conservation Foncière) where the property is located. This certificate will inform the buyer whether the property was previously transferred, if there are any mortgages attached the property, or if there are court orders or insolvency proceedings charging the property, The cost is published in Arrété 25/05/2009 (Official Gazette no. 40/2009). The seller provides the original title (livre foncier) to the Notary in order to prepare the sale and purchase agreement. 3 Parties provide the relevant documents at the notary and obtain the order 3 days DZD 240,573.33; (3% of payment for first DZD 500,000 Agency : Notary of property value, 2% The parties provide the notary with all the relevant documents such as the for the next DZD original Property title, non-encumbrance certificate, birth certificate and the 500,000, 1% for minutes of the shareholders' meeting giving authority to the representative of the company to buy/sell the property on their behalf. The notary takes note of the exceeding amount + purchase price and reviews the documents. The notary then issues an order of 17% VAT is payment to the buyer for 50% of the purchasing price (to be deposited in the applicable on the notary’s account at the Public Revenue Office), where a corporation is involved notary fees) (according to the Loi des Finances 2018). The deposit will cover: • Registration fees: 5% of property value (2.5% for each party) • Notary's fees according to D.E. no.08-243 of 03/08/2008 (Official Gazette no. 45/2008) • Publication fee (taxe de publicité foncière): 1% of property value The value added tax is 19% (not added to calculate cost). 4 The buyer pays registration and publication fees into notary’s account at 1 day DZD 1,353,440; (6% the Public Revenue Office (Trésor Public) of the property value Agency : Public Revenue Office (Trésor Public) (5% registration fee + The buyer deposits a half of the property value to the Notary's account at the 1% publication fee)) Public Revenue Office. This deposit will not be returned earlier than 30 days after the completion of the property transfer (Art. 256 Code d'Enregistrement). 5 Parties sign the contract at the public notary 1 day no charge Agency : Notary After the deposit, the buyer provides the notary with the receipt. The notary then drafts the contract, which is signed by both parties, and issues a provisional copy of the sale agreement to the seller and a copy of purchase agreement to the buyer. The deed must be written in Arabic or else it would be considered void. The notary then continues with the registration of the transfer deed. Page 24 Doing Business 2019 Algeria 6 The notary pays registration fees to the tax authorities (Recette des Impôts) 1 day Already counted in Agency : Tax authority (Recette des Impôts) Procedure 4 The notary deposits the deed to the Recette des Impots where the property is located for continuing with the registration formality of the transaction. The Recette des Impots issues an invoice for the notary to issues a payment of 5% of the purchase value for the registration fees to the local tax authorities. Subsequently, the tax authorities will check if there are outstanding taxes. After the review is over, the tax authorities issue an original deed (‘minute de l’acte) to the notary for his records only. The "minute" is the original received by the notary. The notary must keep it and cannot make it public. 7 The original deed and documents are filed by the notary at the tax authority 3 days no charge (Service de l’Enregistrement et du Timbre) Agency : Tax Authority (Service de l’Enregistrement et du Timbre) The original deed signed by both parties and all relevant documents are filed in by the notary, at the tax authority (Service de l'enregistrement et du timbre). 8 File tax declaration and proof of payment at the local tax office (Sous 1 day no charge Direction du Recouvrement des Impôts) Agency : Local tax office (Sous Direction du Recouvrement des Impôts) The Notary files the tax declaration and proof of payment at the local tax office (Sous Direction du recrouvement des Impôts), within ten days from the date that the contract is signed, and a receipt will be issued. This receipt is important as it will allow the notary to collect the reimbursement of 50% of the amount deposited in his account. 9 Notary returns deposit to seller 30 days no charge Agency : Notary After 30 days, and if there are no objections by the tax office, the notary delivers to the seller a check for the amount of the deposit or, if applicable, the amount minus the capital gains tax, if the latter was paid from the deposit. The notary issues payment for publication fee to the Local Land Registry 18 days Already counted in 10 (Conservation Foncière) for publication and issuance of the new deed Procedure 4 Agency : Local Land Registry (Conservation Foncière) The notary issues a payment by check for the publication fee of 1% of the purchase value (part of 6% deposited by the seller) accompanied by a copy of the deed. The Land Registry then issues the updated property title (livre foncier) to the notary. Takes place simultaneously with previous procedure. Page 25 Doing Business 2019 Algeria Details – Registering Property in Algeria – Measure of Quality Answer Score Reliability of infrastructure index (0-8) 1.0 What is the institution in charge of immovable property registration? Conservation Fonciére - Direction Générale du Domaine National In what format are the majority of title or deed records kept in the largest business city—in a Paper 0.0 paper format or in a computerized format (scanned or fully digital)? Is there an electronic database for checking for encumbrances (liens, mortgages, restrictions No 0.0 and the like)? Institution in charge of the plans showing legal boundaries in the largest business city: Agence Nationale du Cadastre In what format are the majority of maps of land plots kept in the largest business city—in a Paper 0.0 paper format or in a computerized format (scanned or fully digital)? Is there an electronic database for recording boundaries, checking plans and providing No 0.0 cadastral information (geographic information system)? Is the information recorded by the immovable property registration agency and the cadastral Separate 0.0 or mapping agency kept in a single database, in different but linked databases or in separate databases databases? Do the immovable property registration agency and cadastral or mapping agency use the Yes 1.0 same identification number for properties? Transparency of information index (0–6) 1.5 Who is able to obtain information on land ownership at the agency in charge of immovable Only 0.0 property registration in the largest business city? intermediaries and interested parties Is the list of documents that are required to complete any type of property transaction made Yes, on public 0.5 publicly available–and if so, how? boards Link for online access: Is the applicable fee schedule for any property transaction at the agency in charge of Yes, on public 0.5 immovable property registration in the largest business city made publicly available–and if boards so, how? Link for online access: Does the agency in charge of immovable property registration commit to delivering a legally No 0.0 binding document that proves property ownership within a specific time frame–and if so, how does it communicate the service standard? Link for online access: Is there a specific and separate mechanism for filing complaints about a problem that No 0.0 occurred at the agency in charge of immovable property registration? Contact information: Are there publicly available official statistics tracking the number of transactions at the No 0.0 immovable property registration agency? Number of property transfers in the largest business city in 2017: Who is able to consult maps of land plots in the largest business city? Only 0.0 intermediaries and interested parties Is the applicable fee schedule for accessing maps of land plots made publicly available— Yes, online 0.5 and if so, how? Link for online access: Page 26 Doing Business 2019 Algeria Does the cadastral or mapping agency commit to delivering an updated map within a No 0.0 specific time frame—and if so, how does it communicate the service standard? Link for online access: Is there a specific and separate mechanism for filing complaints about a problem that No 0.0 occurred at the cadastral or mapping agency? Contact information: Geographic coverage index (0–8) 0.0 Are all privately held land plots in the economy formally registered at the immovable property No 0.0 registry? Are all privately held land plots in the largest business city formally registered at the No 0.0 immovable property registry? Are all privately held land plots in the economy mapped? No 0.0 Are all privately held land plots in the largest business city mapped? No 0.0 Land dispute resolution index (0–8) 5.0 Does the law require that all property sale transactions be registered at the immovable Yes 1.5 property registry to make them opposable to third parties? Is the system of immovable property registration subject to a state or private guarantee? Yes 0.5 Is there a specific compensation mechanism to cover for losses incurred by parties who No 0.0 engaged in good faith in a property transaction based on erroneous information certified by the immovable property registry? Does the legal system require a control of legality of the documents necessary for a property Yes 0.5 transaction (e.g., checking the compliance of contracts with requirements of the law)? If yes, who is responsible for checking the legality of the documents? Registrar; Notary; Does the legal system require verification of the identity of the parties to a property Yes 0.5 transaction? If yes, who is responsible for verifying the identity of the parties? Registrar; Notary; Is there a national database to verify the accuracy of identity documents? No 0.0 For a standard land dispute between two local businesses over tenure rights of a property Land Division worth 50 times gross national income (GNI) per capita and located in the largest business within the Court city, what court would be in charge of the case in the first instance? that has territorial jurisdiction How long does it take on average to obtain a decision from the first-instance court for such a Between 1 and 2 2.0 case (without appeal)? years Are there any statistics on the number of land disputes in the first instance? No 0.0 Number of land disputes in the largest business city in 2017: Equal access to property rights index (-2–0) 0.0 Do unmarried men and unmarried women have equal ownership rights to property? Yes Do married men and married women have equal ownership rights to property? Yes 0.0 Page 27 Doing Business 2019 Algeria Getting Credit This topic explores two sets of issues—the strength of credit reporting systems and the effectiveness of collateral and bankruptcy laws in facilitating lending. The most recent round of data collection for the project was completed in May 2018. See the methodology for more information. What the indicators measure Case study assumptions Strength of legal rights index (0–12) Doing Business assesses the sharing of credit information and the legal rights of borrowers and lenders with respect to secured transactions through 2 sets of • Rights of borrowers and lenders through indicators. The depth of credit information index measures rules and practices collateral laws (0-10) affecting the coverage, scope and accessibility of credit information available • Protection of secured creditors’ rights through through a credit registry or a credit bureau. The strength of legal rights index bankruptcy laws (0-2) measures the degree to which collateral and bankruptcy laws protect the rights of borrowers and lenders and thus facilitate lending. For each economy it is first Depth of credit information index (0–8) determined whether a unitary secured transactions system exists. Then two case • Scope and accessibility of credit information scenarios, case A and case B, are used to determine how a nonpossessory security distributed by credit bureaus and credit registries interest is created, publicized and enforced according to the law. Special emphasis (0-8) is given to how the collateral registry operates (if registration of security interests is possible). The case scenarios involve a secured borrower, company ABC, and a Credit bureau coverage (% of adults) secured lender, BizBank. • Number of individuals and firms listed in largest In some economies the legal framework for secured transactions will allow only case credit bureau as a percentage of adult population A or case B (not both) to apply. Both cases examine the same set of legal provisions relating to the use of movable collateral. Credit registry coverage (% of adults) • Number of individuals and firms listed in credit Several assumptions about the secured borrower (ABC) and lender (BizBank) registry as a percentage of adult population are used: - ABC is a domestic limited liability company (or its legal equivalent). - ABC has up to 50 employees. - ABC has its headquarters and only base of operations in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city. - Both ABC and BizBank are 100% domestically owned. The case scenarios also involve assumptions. In case A, as collateral for the loan, ABC grants BizBank a nonpossessory security interest in one category of movable assets, for example, its machinery or its inventory. ABC wants to keep both possession and ownership of the collateral. In economies where the law does not allow nonpossessory security interests in movable property, ABC and BizBank use a fiduciary transfer-of-title arrangement (or a similar substitute for nonpossessory security interests). In case B, ABC grants BizBank a business charge, enterprise charge, floating charge or any charge that gives BizBank a security interest over ABC’s combined movable assets (or as much of ABC’s movable assets as possible). ABC keeps ownership and possession of the assets. Page 28 Doing Business 2019 Algeria Getting Credit - Algeria Indicator Algeria Middle East & OECD high Best Regulatory North Africa income Performance Strength of legal rights index (0-12) 2 2.2 6.1 12 (5 Economies) Depth of credit information index (0-8) 0 5.1 6.7 8 (42 Economies) Credit registry coverage (% of adults) 3.2 14.7 21.8 100.0 (4 Economies) Credit bureau coverage (% of adults) 0 15.5 65.3 100.0 (25 Economies) Figure – Getting Credit in Algeria and comparator economies – Ranking and Score DB 2019 Getting Credit Score 0 100 65.00: Egypt, Arab Rep. (Rank: 60) 50.00: France (Rank: 99) 45.00: Morocco (Rank: 112) 40.00: Lebanon (Rank: 124) 36.00: Regional Average (Middle East & North Africa) 10.00: Algeria (Rank: 178) Note: The ranking of economies on the ease of getting credit is determined by sorting their scores for getting credit. These scores are the sum of the scores for the strength of legal rights index and the depth of credit information index. Figure – Legal Rights in Algeria and comparator economies 8 7 6 Index Score 5 5 4 4 3 2 2 2 2.2 2 1 0 Algeria Egypt, Arab Rep. France Lebanon Morocco Middle East & North Africa Page 29 Doing Business 2019 Algeria Details – Legal Rights in Algeria Strength of legal rights index (0-12) 2 Does an integrated or unified legal framework for secured transactions that extends to the creation, publicity and No enforcement of functional equivalents to security interests in movable assets exist in the economy? Does the law allow businesses to grant a non possessory security right in a single category of movable assets, without No requiring a specific description of collateral? Does the law allow businesses to grant a non possessory security right in substantially all of its assets, without requiring a Yes specific description of collateral? May a security right extend to future or after-acquired assets, and does it extend automatically to the products, proceeds and No replacements of the original assets? Is a general description of debts and obligations permitted in collateral agreements; can all types of debts and obligations be Yes secured between parties; and can the collateral agreement include a maximum amount for which the assets are encumbered? Is a collateral registry in operation for both incorporated and non-incorporated entities, that is unified geographically and by No asset type, with an electronic database indexed by debtor's name? Does a notice-based collateral registry exist in which all functional equivalents can be registered? No Does a modern collateral registry exist in which registrations, amendments, cancellations and searches can be performed No online by any interested third party? Are secured creditors paid first (i.e. before tax claims and employee claims) when a debtor defaults outside an insolvency No procedure? Are secured creditors paid first (i.e. before tax claims and employee claims) when a business is liquidated? No Are secured creditors subject to an automatic stay on enforcement when a debtor enters a court-supervised reorganization No procedure? Does the law protect secured creditors’ rights by providing clear grounds for relief from the stay and sets a time limit for it? Does the law allow parties to agree on out of court enforcement at the time a security interest is created? Does the law allow No the secured creditor to sell the collateral through public auction or private tender, as well as, for the secured creditor to keep the asset in satisfaction of the debt? Figure – Credit Information in Algeria and comparator economies 8 8 7 7 6 6 6 5.1 Index Score 5 4 3 2 1 0 0 Algeria Egypt, Arab Rep. France Lebanon Morocco Middle East & North Africa Page 30 Doing Business 2019 Algeria Details – Credit Information in Algeria Depth of credit information index (0-8) Credit Credit Score bureau registry Are data on both firms and individuals distributed? No No 0 Are both positive and negative credit data distributed? No No 0 Are data from retailers or utility companies - in addition to data from banks and No No 0 financial institutions - distributed? Are at least 2 years of historical data distributed? (Credit bureaus and registries No No 0 that distribute more than 10 years of negative data or erase data on defaults as soon as they are repaid obtain a score of 0 for this component.) Are data on loan amounts below 1% of income per capita distributed? No No 0 By law, do borrowers have the right to access their data in the credit bureau or No No 0 credit registry? Can banks and financial institutions access borrowers’ credit information online No No 0 (for example, through an online platform, a system-to-system connection or both)? Are bureau or registry credit scores offered as a value-added service to help No No 0 banks and financial institutions assess the creditworthiness of borrowers? Total Score ("yes" to either public bureau or private registry) 0 Note: An economy receives a score of 1 if there is a "yes" to either bureau or registry. If the credit bureau or registry is not operational or covers less than 5% of the adult population, the total score on the depth of credit information index is 0. Coverage Credit bureau Credit registry Number of individuals 0 396,354 Number of firms 0 466,257 Total 0 862,611 Percentage of adult population 0 3.2 Page 31 Doing Business 2019 Algeria Protecting Minority Investors This topic measures the strength of minority shareholder protections against misuse of corporate assets by directors for their personal gain as well as shareholder rights, governance safeguards and corporate transparency requirements that reduce the risk of abuse. The most recent round of data collection for the project was completed in May 2018. See the methodology for more information. What the indicators measure Case study assumptions • Extent of disclosure index (0–10): Review and To make the data comparable across economies, a case study uses several approval requirements for related-party assumptions about the business and the transaction. transactions; Disclosure requirements for related- party transactions The business (Buyer): • Extent of director liability index (0–10): Ability - Is a publicly traded corporation listed on the economy’s most important stock of minority shareholders to sue and hold exchange. If there are fewer than ten listed companies or if there is no stock interested directors liable for prejudicial related- exchange in the economy, it is assumed that Buyer is a large private company with party transactions; Available legal remedies multiple shareholders. (damages, disgorgement of profits, fines, - Has a board of directors and a chief executive officer (CEO) who may legally act on imprisonment, rescission of the transaction) behalf of Buyer where permitted, even if this is not specifically required by law. • Ease of shareholder suits index (0–10): - Has a supervisory board in economies with a two-tier board system on which Mr. Access to internal corporate documents; James appointed 60% of the shareholder-elected members. Evidence obtainable during trial and allocation of - Has not adopted bylaws or articles of association that go beyond the minimum legal expenses requirements. Does not follow codes, principles, recommendations or guidelines that are not mandatory. • Extent of conflict of interest regulation index - Is a manufacturing company with its own distribution network. (0–10): Simple average of the extent of disclosure, extent of director liability and ease of The transaction involves the following details: shareholder indices - Mr. James owns 60% of Buyer, sits on Buyer’s board of directors and elected two • Extent of shareholder rights index (0-10): directors to Buyer’s five-member board. Shareholders’ rights and role in major corporate - Mr. James also owns 90% of Seller, a company that operates a chain of retail decisions hardware stores. Seller recently closed a large number of its stores. - Mr. James proposes that Buyer purchase Seller’s unused fleet of trucks to expand • Extent of ownership and control index (0-10): Buyer’s distribution of its food products, a proposal to which Buyer agrees. The price Governance safeguards protecting shareholders is equal to 10% of Buyer’s assets and is higher than the market value. from undue board control and entrenchment - The proposed transaction is part of the company’s principal activity and is not • Extent of corporate transparency index (0-10): outside the authority of the company. Corporate transparency on ownership stakes, - Buyer enters into the transaction. All required approvals are obtained, and all compensation, audits and financial prospects required disclosures made—that is, the transaction was not entered into fraudulently. • Extent of shareholder governance index (0– - The transaction causes damages to Buyer. Shareholders sue Mr. James and the 10): Simple average of the extent of shareholders executives and directors that approved the transaction. rights, extent of ownership and control and extent of corporate transparency indices • Strength of minority investor protection index (0–10): Simple average of the extent of conflict of interest regulation and extent of shareholder governance indices Page 32 Doing Business 2019 Algeria Protecting Minority Investors - Algeria Indicator Algeria Middle East & OECD high Best Regulatory North Africa income Performance Extent of disclosure index (0-10) 4.0 6.4 6.5 10 (13 Economies) Extent of director liability index (0-10) 1.0 4.7 5.3 10 (Cambodia) Ease of shareholder suits index (0-10) 5.0 4.5 7.3 10 (Djibouti) Extent of shareholder rights index (0-10) 3.0 5.1 6.4 10 (Kazakhstan) Extent of ownership and control index (0-10) 4.0 4.7 5.4 None in 2017/18 Extent of corporate transparency index (0-10) 4.0 5.8 7.6 10 (6 Economies) Figure – Protecting Minority Investors in Algeria and comparator economies – Ranking and Score DB 2019 Protecting Minority Investors Score 0 100 66.67: France (Rank: 38) 60.00: Morocco (Rank: 64) 58.33: Egypt, Arab Rep. (Rank: 72) 51.83: Regional Average (Middle East & North Africa) 41.67: Lebanon (Rank: 140) 35.00: Algeria (Rank: 168) Note: The ranking of economies on the strength of minority investor protections is determined by sorting their scores for protecting minority investors. These scores are the simple average of the scores for the extent of conflict of interest regulation index and the extent of shareholder governance index. Figure – Protecting Minority Investors in Algeria and comparator economies – Measure of Quality Algeria 4 1 4 4 3 5 Egypt, Arab Rep. 9 3 8 7 5 3 France 10 3 8 8 5 6 Lebanon 5 1 9 1 4 5 Morocco 7 2 9 5 6 7 OECD high income 7.4 5.5 6.5 5.2 6.3 7.4 Middle East & North Africa 5.8 4.7 6.4 4.7 5.1 4.5 0 5 10 15 20 25 30 35 40 45 Sub-Indicator Score Extent of corporate transparency index (0-10) Extent of director liability index (0-10) Extent of disclosure index (0-10) Extent of ownership and control index (0-10) Extent of shareholder rights index (0-10) Ease of shareholder suits index (0-10) Page 33 Doing Business 2019 Algeria Details – Protecting Minority Investors in Algeria – Measure of Quality Answer Score Extent of conflict of interest regulation index (0-10) 3.3 Extent of disclosure index (0-10) 4.0 Whose decision is sufficient to approve the Buyer-Seller transaction? (0-3) Board of 2.0 directors excluding interested members Must an external body review the terms of the transaction before it takes place? (0-1) Yes 1.0 Must Mr. James disclose his conflict of interest to the board of directors? (0-2) Existence of a 1.0 conflict without any specifics Must Buyer disclose the transaction in periodic filings (e.g. annual reports)? (0-2) No disclosure 0.0 obligation Must Buyer immediately disclose the transaction to the public? (0-2) No disclosure 0.0 obligation Extent of director liability index (0-10) 1.0 Can shareholders representing 10% of Buyer's share capital sue for the damage the Yes 1.0 transaction caused to Buyer? (0-1) Can shareholders hold Mr. James liable for the damage the transaction caused to Buyer? (0- Not liable 0.0 2) Can shareholders hold the other directors liable for the damage the transaction caused to Not liable 0.0 Buyer (0-2) Must Mr. James pay damages for the harm caused to Buyer upon a successful claim by No 0.0 shareholders? (0-1) Must Mr. James repay profits made from the transaction upon a successful claim by No 0.0 shareholders? (0-1) Is Mr. James disqualified upon a successful claim by shareholders? (0-1) No 0.0 Can a court void the transaction upon a successful claim by shareholders? (0-2) Only in case of 0.0 fraud or bad faith Ease of shareholder suits index (0-10) 5.0 Before suing, can shareholders representing 10% of Buyer's share capital inspect the No 0.0 transaction documents? (0-1) Can the plaintiff obtain any documents from the defendant and witnesses at trial? (0-3) Documents that 2.0 directly prove specific facts in the plaintiff’s claim Can the plaintiff request categories of documents from the defendant without identifying Yes 1.0 specific ones? (0-1) Can the plaintiff directly question the defendant and witnesses at trial? (0-2) No 0.0 Is the level of proof required for civil suits lower than that of criminal cases? (0-1) Yes 1.0 Can shareholder plaintiffs recover their legal expenses from the company? (0-2) Yes if successful 1.0 Extent of shareholder governance index (0-10) 3.7 Extent of shareholder rights index (0-10) 3.0 Does the sale of 51% of Buyer's assets require shareholder approval? No 0.0 Can shareholders representing 10% of Buyer's share capital call for a meeting of No 0.0 shareholders? Must Buyer obtain its shareholders’ approval every time it issues new shares? No 0.0 Page 34 Doing Business 2019 Algeria Do shareholders automatically receive preemption rights every time Buyer issues new Yes 1.0 shares? Must shareholders approve the election and dismissal of the external auditor? Yes 1.0 Are changes to the rights of a class of shares only possible if the holders of the affected No 0.0 shares approve? Assuming that Buyer is a limited company, does the sale of 51% of its assets require No 0.0 member approval? Assuming that Buyer is a limited company, can members representing 10% call for a No 0.0 meeting of members? Assuming that Buyer is a limited company, must all or almost all members consent to add a No 0.0 new member? Assuming that Buyer is a limited company, must a member first offer to sell their interest to Yes 1.0 the existing members before they can sell to non-members? Extent of ownership and control index (0-10) 4.0 Is it forbidden to appoint the same individual as CEO and chairperson of the board of No 0.0 directors? Must the board of directors include independent and nonexecutive board members? No 0.0 Can shareholders remove members of the board of directors without cause before the end Yes 1.0 of their term? Must the board of directors include a separate audit committee exclusively comprising board No 0.0 members? Must a potential acquirer make a tender offer to all shareholders upon acquiring 50% of No 0.0 Buyer? Must Buyer pay declared dividends within a maximum period set by law? Yes 1.0 Is a subsidiary prohibited from acquiring shares issued by its parent company? Yes 1.0 Assuming that Buyer is a limited company, must Buyer have a mechanism to resolve No 0.0 disagreements among members? Assuming that Buyer is a limited company, must a potential acquirer make a tender offer to No 0.0 all shareholders upon acquiring 50% of Buyer? Assuming that Buyer is a limited company, must Buyer distribute profits within a maximum Yes 1.0 period set by law? Extent of corporate transparency index (0-10) 4.0 Must Buyer disclose direct and indirect beneficial ownership stakes representing 5%? No 0.0 Must Buyer disclose information about board members’ primary employment and No 0.0 directorships in other companies? Must Buyer disclose the compensation of individual managers? No 0.0 Must a detailed notice of general meeting be sent 21 days before the meeting? No 0.0 Can shareholders representing 5% of Buyer’s share capital put items on the general meeting Yes 1.0 agenda? Must Buyer's annual financial statements be audited by an external auditor? Yes 1.0 Must Buyer disclose its audit reports to the public? No 0.0 Assuming that Buyer is a limited company, must members meet at least once a year? Yes 1.0 Assuming that Buyer is a limited company, can members representing 5% put items on the No 0.0 meeting agenda? Assuming that Buyer is a limited company, must Buyer's annual financial statements be Yes 1.0 audited by an external auditor? Page 35 Doing Business 2019 Algeria Paying Taxes This topic records the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as the administrative burden of paying taxes and contributions and complying with postfiling procedures (VAT refund and tax audit). The most recent round of data collection for the project was completed in May 2018 covering for the Paying Taxes indicator calendar year 2017 (January 1, 2017 – December 31, 2017). See the methodology for more information. What the indicators measure Case study assumptions Tax payments for a manufacturing company in Using a case scenario, Doing Business records taxes and mandatory contributions a 2017 (number per year adjusted for electronic medium size company must pay in a year, and measures the administrative burden and joint filing and payment) of paying taxes, contributions and dealing with postfiling processes. Information is also compiled on frequency of filing and payments, time taken to comply with tax • Total number of taxes and contributions paid or laws, time taken to comply with the requirements of postfiling processes and time withheld, including consumption taxes (value waiting. added tax, sales tax or goods and service tax) • Method and frequency of filing and payment To make data comparable across economies, several assumptions are used: - TaxpayerCo is a medium-size business that started operations on January 1, 2016. Time required to comply with 3 major taxes It produces ceramic flowerpots and sells them at retail. All taxes and contributions (hours per year) recorded are paid in the second year of operation (calendar year 2017). Taxes and mandatory contributions are measured at all levels of government. • Collecting information, computing tax payable • Preparing separate tax accounting books, if The VAT refund process: required - In June 2017, TaxpayerCo. makes a large capital purchase: the value of the • Completing tax return, filing with agencies machine is 65 times income per capita of the economy. Sales are equally spread per month (1,050 times income per capita divided by 12) and cost of goods sold are • Arranging payment or withholding equally expensed per month (875 times income per capita divided by 12). The machinery seller is registered for VAT and excess input VAT incurred in June will be Total tax and contribution rate (% of commercial fully recovered after four consecutive months if the VAT rate is the same for inputs, profits) sales and the machine and the tax reporting period is every month. Input VAT will • Profit or corporate income tax exceed Output VAT in June 2017. • Social contributions, labor taxes paid by The corporate income tax audit process: employer - An error in calculation of income tax liability (for example, use of incorrect tax • Property and property transfer taxes depreciation rates, or incorrectly treating an expense as tax deductible) leads to an incorrect income tax return and a corporate income tax underpayment. TaxpayerCo. • Dividend, capital gains, financial transactions discovered the error and voluntarily notified the tax authority. The value of the taxes underpaid income tax liability is 5% of the corporate income tax liability • Waste collection, vehicle, road and other taxes due. TaxpayerCo. submits corrected information after the deadline for submitting the annual tax return, but within the tax assessment period. Postfiling Index • Time to comply with a VAT refund (hours) • Time to obtain a VAT refund (weeks) • Time to comply with a corporate income tax correction (hours) • Time to complete a corporate income tax correction (weeks) Page 36 Doing Business 2019 Algeria Paying Taxes - Algeria Indicator Algeria Middle East & OECD high Best Regulatory North Africa income Performance Payments (number per year) 27 17.7 11.2 3 (Hong Kong SAR, China) Time (hours per year) 265 196.7 159.4 49 (Singapore) Total tax and contribution rate (% of profit) 66.0 32.7 39.8 26.1% (32 Economies) Postfiling index (0-100) 49.77 50.08 84.41 None in 2017/18 Figure – Paying Taxes in Algeria and comparator economies – Ranking and Score DB 2019 Paying Taxes Score 0 100 85.72: Morocco (Rank: 25) 79.31: France (Rank: 55) 74.52: Regional Average (Middle East & North Africa) 67.94: Lebanon (Rank: 113) 53.91: Algeria (Rank: 156) 52.73: Egypt, Arab Rep. (Rank: 159) Note: The ranking of economies on the ease of paying taxes is determined by sorting their scores for paying taxes. These scores are the simple average of the scores for each of the component indicators, with a threshold and a nonlinear transformation applied to one of the component indicators, the total tax and contribution rate. The threshold is defined as the total tax and contribution rate at the 15th percentile of the overall distribution for all years included in the analysis up to and including Doing Business 2015, which is 26.1%. All economies with a total tax and contribution rate below this threshold receive the same score as the economy at the threshold. Figure – Paying Taxes in Algeria and comparator economies – Measure of Quality 98.62 100 92.40 80 Index score 60 49.77 50.08 40 36.54 27.48 20 0 Algeria Egypt, Arab Rep. France Lebanon Morocco Middle East & North Africa Page 37 Doing Business 2019 Algeria Details – Paying Taxes in Algeria Tax or Payments Notes on Time Statutory Tax base Total tax Notes on mandatory (number) Payments (hours) tax rate and TTCR contribution contribution rate (% of profit) Social 12.0 76.0 26% gross salaries 29.33 security contributions Tax on 0.0 jointly 1% turnover 26.52 professional activity Corporate 0.0 jointly 122.0 19% taxable profit 8.17 income tax Apprenticeshi 0.0 jointly 2% net salaries 1.80 p tax and traning tax Tax on 0.0 withheld 10% interest 0.26 included in interest income other taxes Tax on built 0.0 jointly 3% rental value of 0.12 land land Drainage tax 0.0 jointly DZD 10,000 fixed fee 0.05 Tax on unbuilt 1.0 7% rental value of 0.03 land land Vehicle tax 1.0 DZD 1,000 fixed fee 0.01 Value added 12.0 67.0 19% value added 0.00 not included tax (VAT) Employee 0.0 jointly 9% 0.00 withheld Labor Tax Fuel tax 1.0 DZD 1/liter value of fuel 0.00 small amount Stamp duty 0.0 jointly DZD 40 to number of 0.00 small amount DZD 2500 pages in document Totals 27 265 66.0 Page 38 Doing Business 2019 Algeria Details – Paying Taxes in Algeria – Tax by Type Taxes by type Answer Profit tax (% of profit) 8.2 Labor tax and contributions (% of profit) 31.1 Other taxes (% of profit) 26.7 Page 39 Doing Business 2019 Algeria Details – Paying Taxes in Algeria – Measure of Quality Answer Score Postfiling index (0-100) 49.77 VAT refunds Does VAT exist? Yes Does a VAT refund process exist per the case study? No Restrictions on VAT refund process Restricted to international traders and others Percentage of cases exposed to a VAT audit (%) Not applicable Is there a mandatory carry forward period? No Time to comply with VAT refund (hours) No VAT refund 0 per case study scenario Time to obtain a VAT refund (weeks) No VAT refund 0 per case study scenario Corporate income tax audits Does corporate income tax exist? Yes Percentage of cases exposed to a corporate income tax audit (%) 0% - 24% Time to comply with a corporate income tax correction (hours) 2.0 99.08 Time to complete a corporate income tax correction (weeks) No tax audit per 100 case study scenario Notes: Names of taxes have been standardized. For instance income tax, profit tax, tax on company's income are all named corporate income tax in this table. The hours for VAT include all the VAT and sales taxes applicable. The hours for Social Security include all the hours for labor taxes and mandatory contributions in general. The postfiling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with a corporate income tax correction and time to complete a corporate income tax correction. N/A = Not applicable. Page 40 Doing Business 2019 Algeria Trading across Borders Doing Business records the time and cost associated with the logistical process of exporting and importing goods. Doing Business measures the time and cost (excluding tariffs) associated with three sets of procedures—documentary compliance, border compliance and domestic transport—within the overall process of exporting or importing a shipment of goods. The most recent round of data collection for the project was completed in May 2018. See the methodology for more information. What the indicators measure Case study assumptions Documentary compliance To make the data comparable across economies, a few assumptions are made about the traded goods and the transactions: • Obtaining, preparing and submitting documents during transport, clearance, inspections and port Time: Time is measured in hours, and 1 day is 24 hours (for example, 22 days are or border handling in origin economy recorded as 22×24=528 hours). If customs clearance takes 7.5 hours, the data are • Obtaining, preparing and submitting documents recorded as is. Alternatively, suppose documents are submitted to a customs agency required by destination economy and any transit at 8:00a.m., are processed overnight and can be picked up at 8:00a.m. the next day. economies The time for customs clearance would be recorded as 24 hours because the actual procedure took 24 hours. • Covers all documents required by law and in practice, including electronic submissions of Cost: Insurance cost and informal payments for which no receipt is issued are information excluded from the costs recorded. Costs are reported in U.S. dollars. Contributors Border compliance are asked to convert local currency into U.S. dollars based on the exchange rate prevailing on the day they answer the questionnaire. Contributors are private sector • Customs clearance and inspections experts in international trade logistics and are informed about exchange rates. • Inspections by other agencies (if applied to more Assumptions of the case study: than 20% of shipments) - For all 190 economies covered by Doing Business, it is assumed a shipment is in a • Handling and inspections that take place at the warehouse in the largest business city of the exporting economy and travels to a economy’s port or border warehouse in the largest business city of the importing economy. - It is assumed each economy imports 15 metric tons of containerized auto parts (HS Domestic transport 8708) from its natural import partner—the economy from which it imports the largest • Loading or unloading of the shipment at the value (price times quantity) of auto parts. It is assumed each economy exports the warehouse or port/border product of its comparative advantage (defined by the largest export value) to its natural export partner—the economy that is the largest purchaser of this product. • Transport between warehouse and port/border Shipment value is assumed to be $50,000. • Traffic delays and road police checks while - The mode of transport is the one most widely used for the chosen export or import shipment is en route product and the trading partner, as is the seaport or land border crossing. - All electronic information submissions requested by any government agency in connection with the shipment are considered to be documents obtained, prepared and submitted during the export or import process. - A port or border is a place (seaport or land border crossing) where merchandise can enter or leave an economy. - Relevant government agencies include customs, port authorities, road police, border guards, standardization agencies, ministries or departments of agriculture or industry, national security agencies and any other government authorities. Page 41 Doing Business 2019 Algeria Trading across Borders - Algeria Indicator Algeria Middle East & OECD high Best Regulatory North Africa income Performance Time to export: Border compliance (hours) 80 58.0 12.5 1 (19 Economies) Cost to export: Border compliance (USD) 593 442.4 139.1 0 (19 Economies) Time to export: Documentary compliance (hours) 149 67.9 2.4 1 (26 Economies) Cost to export: Documentary compliance (USD) 374 244.6 35.2 0 (20 Economies) Time to import: Border compliance (hours) 210 105.4 8.5 0 (25 Economies) Cost to import: Border compliance (USD) 409 536.0 100.2 0 (28 Economies) Time to import: Documentary compliance (hours) 96 75.5 3.4 1 (30 Economies) Cost to import: Documentary compliance (USD) 400 269.0 24.9 0 (30 Economies) Figure – Trading across Borders in Algeria and comparator economies – Ranking and Score DB 2019 Trading Across Borders Score 0 100 83.58: Morocco (Rank: 62) 60.17: Regional Average (Middle East & North Africa) 57.90: Lebanon (Rank: 150) 42.23: Egypt, Arab Rep. (Rank: 171) 38.43: Algeria (Rank: 173) 100.00: France (Rank: 1) Note: The ranking of economies on the ease of trading across borders is determined by sorting their scores for trading across borders. These scores are the simple average of the scores for the time and cost for documentary compliance and border compliance to export and import. Figure – Trading across Borders in Algeria – Time and Cost Time (hours) Cost (USD) 250 700 593 210 600 200 Time (hours) 500 Cost (USD) 149 409 400 150 374 400 96 300 100 80 200 50 100 0 0 Export Export Import Import - - - - Border Documentary Border Documentary Compliance Compliance Compliance Compliance Page 42 Doing Business 2019 Algeria Details – Trading across Borders in Algeria Characteristics Export Import Product HS 28 : Inorganic chemicals; organic or HS 8708: Parts and accessories of motor inorganic compounds of precious metals, of vehicles rare-earth metals, of radioactive elements or of isotopes Trade partner Spain France Border Alger port Alger port Distance (km) 7 7 Domestic transport time (hours) 4 4 Domestic transport cost (USD) 283 264 Details – Trading across Borders in Algeria – Components of Border Compliance Time to Complete (hours) Associated Costs (USD) Export: Clearance and inspections required 26.2 121.5 by customs authorities Export: Clearance and inspections required 65.8 61.3 by agencies other than customs Export: Port or border handling 36.0 410.0 Import: Clearance and inspections required 96.0 206.0 by customs authorities Import: Clearance and inspections required 0.0 0.0 by agencies other than customs Import: Port or border handling 113.6 202.8 Page 43 Doing Business 2019 Algeria Details – Trading across Borders in Algeria – Trade Documents Export Import Bill of lading Bill of Lading Cargo release order Cargo Release Order Commercial invoice Commercial invoice Custom Export Declaration Custom Import Declaration Packing List Inspection Report Health Certificate Packing List Terminal Handling Receipt Terminal Handling receipt SOLAS certificate Certificate of conformity Certificate of origin SOLAS certificate Avis d'arrivée Certificate of origin Page 44 Doing Business 2019 Algeria Enforcing Contracts The enforcing contracts indicator measures the time and cost for resolving a commercial dispute through a local first-instance court, and the quality of judicial processes index, evaluating whether each economy has adopted a series of good practices that promote quality and efficiency in the court system. The most recent round of data collection was completed in May 2018. See the methodology for more information. What the indicators measure Case study assumptions Time required to enforce a contract through the The dispute in the case study involves the breach of a sales contract between 2 courts (calendar days) domestic businesses. The case study assumes that the court hears an expert on the quality of the goods in dispute. This distinguishes the case from simple debt • Time to file and serve the case enforcement. • Time for trial and to obtain the judgment To make the data comparable across economies, Doing Business uses several • Time to enforce the judgment assumptions about the case: Cost required to enforce a contract through the - The dispute concerns a lawful transaction between two businesses (Seller and courts (% of claim) Buyer), both located in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city. • Attorney fees - The buyer orders custom-made goods, then fails to pay alleging that the goods are not of adequate quality. • Court fees - The value of the dispute is 200% of the income per capita or the equivalent in local • Enforcement fees currency of USD 5,000, whichever is greater. - The seller sues the buyer before the court with jurisdiction over commercial cases Quality of judicial processes index (0-18) worth 200% of income per capita or $5,000. • Court structure and proceedings (-1-5) - The seller requests the pretrial attachment of the defendant’s movable assets to secure the claim. • Case management (0-6) - The dispute on the quality of the goods requires an expert opinion. • Court automation (0-4) - The judge decides in favor of the seller; there is no appeal. - The seller enforces the judgment through a public sale of the buyer’s movable • Alternative dispute resolution (0-3) assets. Page 45 Doing Business 2019 Algeria Enforcing Contracts - Algeria Standardized Case Claim value DZD 821,413 Court name Alger Sidi M'hamed Tribunal, Commercial Section City Covered Algiers Indicator Algeria Middle East & OECD high Best Regulatory North Africa income Performance Time (days) 630 622.0 582.4 None in 2017/18 Cost (% of claim value) 21.8 24.7 21.2 None in 2017/18 Quality of judicial processes index (0-18) 5.5 6.1 11.5 None in 2017/18 Figure – Enforcing Contracts in Algeria and comparator economies – Ranking and Score DB 2019 Enforcing Contracts Score 0 100 74.89: France (Rank: 12) 60.93: Morocco (Rank: 68) 55.04: Regional Average (Middle East & North Africa) 54.78: Algeria (Rank: 112) 49.85: Lebanon (Rank: 135) 42.75: Egypt, Arab Rep. (Rank: 160) Note: The ranking of economies on the ease of enforcing contracts is determined by sorting their scores for enforcing contracts. These scores are the simple average of the scores for each of the component indicators. Figure – Enforcing Contracts in Algeria – Time and Cost Time (days) Cost (% of claim value) Cost (% of claim value) 1200 35 1010 30.8 1000 26.2 26.5 30 24.7 Time (days) 21.8 21.2 25 800 721 630 17.4 622.0 582.4 20 600 510 395 15 400 10 200 5 0 0 Algeria Egypt, France Lebanon Middle Morocco OECD Arab East high Rep. & income North Africa Page 46 Doing Business 2019 Algeria Figure – Enforcing Contracts in Algeria and comparator economies – Measure of Quality Algeria 2.5 0 3 Egypt, Arab Rep. 2 0 3.5 France 2.5 3 2 4.5 Lebanon 1.5 0.5 0 4 Morocco 2.5 1 0 4.5 OECD high income 2.5 3.1 2.3 3.6 Middle East & North Africa 2.2 0.8 0.4 2.8 0 2 4 6 8 10 12 14 Sub-Indicator Score Alternative dispute resolution (0-3) Case management (0-6) Court automation (0-4) Court structure and proceedings (-1-5) Details – Enforcing Contracts in Algeria Indicator Time (days) 630 Filing and service 21 Trial and judgment 390 Enforcement of judgment 219 Cost (% of claim value) 21.8 Attorney fees 10 Court fees 7.4 Enforcement fees 4.4 Quality of judicial processes index (0-18) 5.5 Court structure and proceedings (-1-5) 3.0 Case management (0-6) 0.0 Court automation (0-4) 0.0 Alternative dispute resolution (0-3) 2.5 Page 47 Doing Business 2019 Algeria Details – Enforcing Contracts in Algeria – Measure of Quality Answer Score Quality of judicial processes index (0-18) 5.5 Court structure and proceedings (-1-5) 3.0 1. Is there a court or division of a court dedicated solely to hearing commercial cases? Yes 1.5 2. Small claims court 0.0 2.a. Is there a small claims court or a fast-track procedure for small claims? No 2.b. If yes, is self-representation allowed? n.a. 3. Is pretrial attachment available? Yes 1.0 4. Are new cases assigned randomly to judges? Yes, but manual 0.5 5. Does a woman's testimony carry the same evidentiary weight in court as a man's? Yes 0.0 Case management (0-6) 0.0 1. Time standards 0.0 1.a. Are there laws setting overall time standards for key court events in a civil No case? 1.b. If yes, are the time standards set for at least three court events? n.a. 1.c. Are these time standards respected in more than 50% of cases? n.a. 2. Adjournments 0.0 2.a. Does the law regulate the maximum number of adjournments that can be No granted? 2.b. Are adjournments limited to unforeseen and exceptional circumstances? Yes 2.c. If rules on adjournments exist, are they respected in more than 50% of cases? No 3. Can two of the following four reports be generated about the competent court: (i) time to No 0.0 disposition report; (ii) clearance rate report; (iii) age of pending cases report; and (iv) single case progress report? 4. Is a pretrial conference among the case management techniques used before the No 0.0 competent court? 5. Are there any electronic case management tools in place within the competent court for No 0.0 use by judges? 6. Are there any electronic case management tools in place within the competent court for No 0.0 use by lawyers? Court automation (0-4) 0.0 1. Can the initial complaint be filed electronically through a dedicated platform within the no 0.0 competent court? 2. Is it possible to carry out service of process electronically for claims filed before the No 0.0 competent court? 3. Can court fees be paid electronically within the competent court? No 0.0 4. Publication of judgments 0.0 4.a Are judgments rendered in commercial cases at all levels made available to the No general public through publication in official gazettes, in newspapers or on the internet or court website? 4.b. Are judgments rendered in commercial cases at the appellate and supreme No court level made available to the general public through publication in official gazettes, in newspapers or on the internet or court website? Alternative dispute resolution (0-3) 2.5 1. Arbitration 1.5 Page 48 Doing Business 2019 Algeria 1.a. Is domestic commercial arbitration governed by a consolidated law or Yes consolidated chapter or section of the applicable code of civil procedure encompassing substantially all its aspects? 1.b. Are there any commercial disputes—aside from those that deal with public No order or public policy—that cannot be submitted to arbitration? 1.c. Are valid arbitration clauses or agreements usually enforced by the courts? Yes 2. Mediation/Conciliation 1.0 2.a. Is voluntary mediation or conciliation available? Yes 2.b. Are mediation, conciliation or both governed by a consolidated law or Yes consolidated chapter or section of the applicable code of civil procedure encompassing substantially all their aspects? 2.c. Are there financial incentives for parties to attempt mediation or conciliation No (i.e., if mediation or conciliation is successful, a refund of court filing fees, income tax credits or the like)? Page 49 Doing Business 2019 Algeria Resolving Insolvency Doing Business studies the time, cost and outcome of insolvency proceedings involving domestic legal entities. These variables are used to calculate the recovery rate, which is recorded as cents on the dollar recovered by secured creditors through reorganization, liquidation or debt enforcement (foreclosure or receivership) proceedings. To determine the present value of the amount recovered by creditors, Doing Business uses the lending rates from the International Monetary Fund, supplemented with data from central banks and the Economist Intelligence Unit. The most recent round of data collection was completed in May 2018. See the methodology for more information. What the indicators measure Case study assumptions Time required to recover debt (years) To make the data on the time, cost and outcome comparable across economies, several assumptions about the business and the case are used: • Measured in calendar years • Appeals and requests for extension are included - A hotel located in the largest city (or cities) has 201 employees and 50 suppliers. The hotel experiences financial difficulties. Cost required to recover debt (% of debtor’s - The value of the hotel is 100% of the income per capita or the equivalent in local estate) currency of USD 200,000, whichever is greater. - The hotel has a loan from a domestic bank, secured by a mortgage over the hotel’s • Measured as percentage of estate value real estate. The hotel cannot pay back the loan, but makes enough money to • Court fees operate otherwise. • Fees of insolvency administrators In addition, Doing Business evaluates the quality of legal framework applicable to • Lawyers’ fees judicial liquidation and reorganization proceedings and the extent to which best insolvency practices have been implemented in each economy covered. • Assessors’ and auctioneers’ fees • Other related fees Outcome • Whether business continues operating as a going concern or business assets are sold piecemeal Recovery rate for creditors • Measures the cents on the dollar recovered by secured creditors • Outcome for the business (survival or not) determines the maximum value that can be recovered • Official costs of the insolvency proceedings are deducted • Depreciation of furniture is taken into account • Present value of debt recovered Strength of insolvency framework index (0- 16) • Sum of the scores of four component indices: • Commencement of proceedings index (0-3) • Management of debtor’s assets index (0-6) • Reorganization proceedings index (0-3) • Creditor participation index (0-4) Page 50 Doing Business 2019 Algeria Resolving Insolvency - Algeria Indicator Algeria Middle East & OECD high Best Regulatory North Africa income Performance Recovery rate (cents on the dollar) 50.8 26.3 70.5 None in 2017/18 Time (years) 1.3 2.8 1.7 0.4 (Ireland) Cost (% of estate) 7.0 13.8 9.3 1.0 (Norway) Outcome (0 as piecemeal sale and 1 as going 0 .. .. .. concern) Strength of insolvency framework index (0-16) 7.0 5.9 11.9 None in 2017/18 Figure – Resolving Insolvency in Algeria and comparator economies – Ranking and Score DB 2019 Resolving Insolvency Score 0 100 74.08: France (Rank: 28) 52.84: Morocco (Rank: 71) 49.24: Algeria (Rank: 76) 42.27: Egypt, Arab Rep. (Rank: 101) 32.69: Regional Average (Middle East & North Africa) 29.55: Lebanon (Rank: 151) Note: The ranking of economies on the ease of resolving insolvency is determined by sorting their scores for resolving insolvency. These scores are the simple average of the scores for the recovery rate and the strength of insolvency framework index. Figure – Resolving Insolvency in Algeria – Time and Cost Time (years) Cost (% of estate) 4 25 22.0 3.5 Cost (% of estate) 3.5 3.0 18.0 20 2.8 Time (years) 3 2.5 15.0 2.5 13.8 15 1.9 2 1.7 9.0 9.3 1.5 1.3 10 7.0 1 5 0.5 0 0 Algeria Egypt, France Lebanon Middle Morocco OECD Arab East high Rep. & income North Africa Page 51 Doing Business 2019 Algeria Figure – Resolving Insolvency in Algeria and comparator economies – Measure of Quality Algeria 2 3 1 1 Egypt, Arab Rep. 4 2.5 2 1 France 6 3 1 1 Lebanon 2 2 0 Morocco 5.5 3 2 1.5 OECD high income 5.3 2.8 2.2 1.9 Middle East & North Africa 3.3 2.2 1.2 0.4 0 2 4 6 8 10 12 14 Sub-Indicator Score Management of debtor's assets index (0-6) Commencement of proceedings index (0-3) Creditor participation index (0-4) Reorganization proceedings index (0-3) Note: Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice.” Figure – Resolving Insolvency in Algeria and comparator economies – Recovery Rate Recovery rate(cents on the dollar) 100 80 73.8 60 50.8 40 31.7 28.5 26.3 23.4 20 0 Algeria Egypt, Arab Rep. France Lebanon Morocco Middle East & North Africa Page 52 Doing Business 2019 Algeria Details – Resolving Insolvency in Algeria Indicator Answer Score Proceeding foreclosure Mirage cannot repay the amount due to BizBank, so the bank will start foreclosure proceedings at the First Instance Court. At the end of the procedure, the hotel building will be sold and Bizbank will be repaid. Outcome piecemeal sale Foreclosure proceedings will lead to the sale of the building and repayment to creditors, so the hotel will no longer exist. Time (in years) 1.3 According to our estimations, the entire foreclosure procedure would take approximately 16 months. Cost (% of 7.0 According to our estimations, the entire foreclosure proceedings would cost approximately 7% of estate) the value of the estate. The following cost components are applicable: attorneys' fees (up to 5%), fees of other professionals involved such as court bailiff (around 2%), and court fees (0,1%). Recovery rate 50.8 (cents on the dollar) Page 53 Doing Business 2019 Algeria Details – Resolving Insolvency in Algeria – Measure of Quality Answer Score Strength of insolvency framework index (0-16) 7.0 Commencement of proceedings index (0-3) 3.0 What procedures are available to a DEBTOR when commencing insolvency proceedings? (a) Debtor may 1.0 file for both liquidation and reorganization Does the insolvency framework allow a CREDITOR to file for insolvency of the debtor? (a) Yes, a creditor 1.0 may file for both liquidation and reorganization What basis for commencement of the insolvency proceedings is allowed under the (a) Debtor is 1.0 insolvency framework? generally unable to pay its debts as they mature Management of debtor's assets index (0-6) 2.0 Does the insolvency framework allow the continuation of contracts supplying essential goods No 0.0 and services to the debtor? Does the insolvency framework allow the rejection by the debtor of overly burdensome No 0.0 contracts? Does the insolvency framework allow avoidance of preferential transactions? Yes 1.0 Does the insolvency framework allow avoidance of undervalued transactions? Yes 1.0 Does the insolvency framework provide for the possibility of the debtor obtaining credit after No 0.0 commencement of insolvency proceedings? Does the insolvency framework assign priority to post-commencement credit? (c) No priority is 0.0 assigned to post- commencement creditors Reorganization proceedings index (0-3) 1.0 Which creditors vote on the proposed reorganization plan? (b) Only creditors 1.0 whose rights are affected by the proposed plan Does the insolvency framework require that dissenting creditors in reorganization receive at No 0.0 least as much as what they would obtain in a liquidation? Are the creditors divided into classes for the purposes of voting on the reorganization plan, No 0.0 does each class vote separately and are creditors in the same class treated equally? Creditor participation index (0-4) 1.0 Does the insolvency framework require approval by the creditors for selection or No 0.0 appointment of the insolvency representative? Does the insolvency framework require approval by the creditors for sale of substantial No 0.0 assets of the debtor? Does the insolvency framework provide that a creditor has the right to request information No 0.0 from the insolvency representative? Does the insolvency framework provide that a creditor has the right to object to decisions Yes 1.0 accepting or rejecting creditors' claims? Note: Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice.” Page 54 Doing Business 2019 Algeria Labor Market Regulation Doing Business presents detailed data for the labor market regulation indicators on the Doing Business website (http://www.doingbusiness.org). The report does not present rankings of economies on these indicators or include the topic in the aggregate ease of doing business score or ranking on the ease of doing business. The most recent round of data collection was completed in May 2018. See the methodology for more information. What the indicators measure Case study assumptions Hiring To make the data comparable across economies, several assumptions about the (i) whether fixed-term contracts are prohibited for worker and the business are used. permanent tasks; (ii) maximum cumulative duration of fixed-term contracts; (iii) length of the The worker: probationary period; (iv) minimum wage. - Is a cashier in a supermarket or grocery store, age 19, with one year of work experience. Working hours - Is a full-time employee. (i) maximum number of working days allowed per - Is not a member of the labor union, unless membership is mandatory. week; (ii) premiums for work: at night, on a weekly rest day and overtime; (iii) whether there are The business: restrictions on work at night, work on a weekly rest - Is a limited liability company (or the equivalent in the economy). day and for overtime work; (iv) whether - Operates a supermarket or grocery store in the economy’s largest business city. nonpregnant and nonnursing women can work For 11 economies the data are also collected for the second largest business city. same night hours as men; (v) length of paid annual - Has 60 employees. leave. - Is subject to collective bargaining agreements if such agreements cover more than 50% of the food retail sector and they apply even to firms that are not party to them. Redundancy rules - Abides by every law and regulation but does not grant workers more benefits than (i) whether redundancy can be basis for terminating those mandated by law, regulation or (if applicable) collective bargaining workers; (ii) whether employer needs to notify agreements. and/or get approval from third party to terminate 1 redundant worker and a group of 9 redundant workers; (iii) whether law requires employer to reassign or retrain a worker before making worker redundant; (iv) whether priority rules apply for redundancies and reemployment. Redundancy cost (i) notice period for redundancy dismissal; (ii) severance payments due when terminating a redundant worker. Job quality (i) whether law mandates equal remuneration for work of equal value and nondiscrimination based on gender in hiring; (ii) whether law mandates paid or unpaid maternity leave; (iii) length of paid maternity leave; (iv) whether employees on maternity leave receive 100% of wages; (v) availability of five fully paid days of sick leave a year; (vi) eligibility requirements for unemployment protection. Page 55 Doing Business 2019 Algeria Labor Market Regulation - Algeria Details – Labor Market Regulation in Algeria Answer Hiring Fixed-term contracts prohibited for permanent tasks? Yes Maximum length of a single fixed-term contract (months) No limit Maximum length of fixed-term contracts, including renewals (months) No limit Minimum wage applicable to the worker assumed in the case study (US$/month) 158.0 Ratio of minimum wage to value added per worker 0.3 Maximum length of probationary period (months) 6.0 Working hours Standard workday 8.0 Maximum number of working days per week 6.0 Premium for night work (% of hourly pay) 0.0 Premium for work on weekly rest day (% of hourly pay) 0.0 Premium for overtime work (% of hourly pay) 50.0 Restrictions on night work? Yes Whether nonpregnant and nonnursing women can work the same night hours as men No Restrictions on weekly holiday? No Restrictions on overtime work? No Paid annual leave for a worker with 1 year of tenure (working days) 22.0 Paid annual leave for a worker with 5 years of tenure (working days) 22.0 Paid annual leave for a worker with 10 years of tenure (working days) 22.0 Paid annual leave (average for workers with 1, 5 and 10 years of tenure, in working days) 22.0 Redundancy rules Dismissal due to redundancy allowed by law? Yes Third-party notification if one worker is dismissed? Yes Third-party approval if one worker is dismissed? No Third-party notification if nine workers are dismissed? Yes Third-party approval if nine workers are dismissed? No Retraining or reassignment obligation before redundancy? Yes Priority rules for redundancies? Yes Priority rules for reemployment? No Redundancy cost Notice period for redundancy dismissal for a worker with 1 year of tenure 4.3 Notice period for redundancy dismissal for a worker with 5 years of tenure 4.3 Notice period for redundancy dismissal for a worker with 10 years of tenure 4.3 Notice period for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure) 4.3 Severance pay for redundancy dismissal for a worker with 1 year of tenure 13.0 Page 56 Doing Business 2019 Algeria Severance pay for redundancy dismissal for a worker with 5 years of tenure 13.0 Severance pay for redundancy dismissal for a worker with 10 years of tenure 13.0 Severance pay for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure) 13.0 Job quality Equal remuneration for work of equal value? Yes Gender nondiscrimination in hiring? No Paid or unpaid maternity leave mandated by law? Yes Minimum length of maternity leave (calendar days)? 98.0 Receive 100% of wages on maternity leave? Yes Five fully paid days of sick leave a year? No Unemployment protection after one year of employment? No Minimum contribution period for unemployment protection (months)? 36.0 Page 57 Doing Business 2019 Algeria Business Reforms in Algeria In the past year, Doing Business observed a peaking of reform activity worldwide. From June 2, 2017, to May 1, 2018, 128 economies implemented a record 314 regulatory reforms improving the business climate. Reforms inspired by Doing Business have been implemented by economies in all regions. The following are reforms implemented since Doing Business 2008. = Doing Business reform making it easier to do business. = Change making it more difficult to do business. DB2019 Getting Electricity: Algeria made the process for getting an electricity connection easier by streamlining internal administrative processes and by granting new licenses to vendors selling pre-built substations. Trading across Borders: Algeria made importing easier by implementing joint inspections between control agencies. DB2017 Starting a Business: Algeria made starting a business easier by eliminating the minimum capital requirement for business incorporation. Dealing with Construction Permits: Algeria made dealing with construction permits indicator faster by reducing the time to obtain a construction permit. Getting Electricity: Algeria made getting electricity more transparent by publishing electricity tariff s on the websites of the utility and the energy regulator. Paying Taxes: Algeria made paying taxes less costly by decreasing the tax on professional activities rate. The introduction of advanced accounting systems also made paying taxes easier. DB2016 Starting a Business: Algeria made starting a business easier by eliminating the requirement to obtain managers’ criminal records. Dealing with Construction Permits: Algeria made dealing with construction permits easier by eliminating the legal requirement to provide a certified copy of a property title when applying for a building permit. DB2015 Trading across Borders: Algeria made trading across borders easier by upgrading infrastructure at the port of Algiers. DB2013 Getting Credit: Algeria improved access to credit information by eliminating the minimum threshold for loans to be included in the database. DB2012 Getting Credit: Algeria improved its credit information system by guaranteeing by law the right of borrowers to inspect their personal data. DB2010 Dealing with Construction Permits: Algeria enhanced its construction permitting process by introducing new regulations aimed at improving the administration of the process and at ensuring the safe and timely completion of construction projects. Registering Property: Algeria made registering property easier and less costly by reducing notary fees and eliminating the capital gains tax. Paying Taxes: Algeria made paying taxes less costly for companies by reducing the corporate income tax rate for tourism, construction and public works, and the production of goods. Enforcing Contracts: Algeria improved contract enforcement by introducing a new civil procedure code that reduces the steps and time required and by fully computerizing the courts, including by setting up an electronic case management system. DB2008 Trading across Borders: Algeria made trading across borders more difficult by increasing the number of inspections carried out. Page 58 Doing Business 2019 Algeria Page 59