In Algeria, the most important sources of government revenue have been oil and gas royalties. Taxation in Algeria has been streamlined through the replacement of a number of different taxes by a value-added tax (VAT), a personal income tax, and a corporate profits tax. The corporation tax was 45% on distributed profits and 20% on reinvested earnings.

Many fiscal advantages have been granted to developing and expanding industries, especially to private investment. For established domestic industry and commerce there is a tax on production (a single tax that was passed on to the consumer) and a tax on industrial and commercial activities.