Analysis of the tax structure and system in Algeria: A study of challenges and risks in the context of legislative reforms

Abstract

This study aims to analyse the tax system in Algeria, focusing on its components, legislative reforms, and the challenges it presents, particularly for small and medium enterprises (SMEs). The research employs a descriptive and analytical methodology to assess the effectiveness and efficiency of the tax system amidst continuous legislative amendments and their impact on both businesses and the broader economy. By evaluating the legislative framework, tax structure, and administrative processes, the study seeks to identify key issues that hinder optimal tax collection and compliance. The primary finding of this research is that the frequent amendments to tax legislation, coupled with the complexity of tax procedures, have created an environment of uncertainty and confusion, particularly for SMEs. This has led to increased difficulties in tax compliance and administration, thus undermining the overall effectiveness of the tax system.