Self-entrepreneur condition: what are the advantages of the new law?

In Algeria, the spread of the Internet has allowed many young people, especially university students, to embark on online self employment🇧🇷 Programming, web development, graphic design, translation, content creation, e-commerce… all try to find a niche where they can offer their services and monetize their skills.

However, this booming sector has so far suffered from one major shortcoming: the absence of a regulatory framework for the activity and a legal status for those who carry it out🇧🇷 This situation forced these new types of entrepreneurs to work “under the table”, without social security and without their activity contributing to the official economy.

Thus, the Minister of Economy of Knowledge and Startups, Yacine El-Mahdi Oualid, suggested the creation autonomous status🇧🇷 The minister’s proposal did not fall on deaf ears. On Thursday, December 8, the members of the Council of the Nation adopted “the bill on the statute of the self-entrepreneur”🇧🇷 and on Monday, December 19, President Tebboune signed the text. This will enter into force as soon as it is published in the Official Journal.

What are the conditions to be fulfilled to obtain self-employed status?

The text of the law considers a self-employed worker to be “any person who exercises a lucrative individual activity included in the list of activities eligible to benefit from the status of self-entrepreneur…” However, it excludes from its scope “liberal professions, regulated activities and artisans”. Who can really benefit from this status?

The Minister of Knowledge Economy, Start-ups and Micro-enterprises, Yacine El Mahdi Oualid

Although they are not the only interested parties, the provisions of this text of the law are primarily intended to digital economy actors job freelance: IT developers, digital marketers (e-commerce), content creators, community managers, graphic designers… .

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Thus, the status of self-entrepreneur organizes activities that no legal framework has governed to date. However, the law requires a number of conditions to obtain this status, including:

– Enrollment in the National Register of self-entrepreneurs;
– Declaration to the National Social Security Fund for Non-Workers (CASNOS);
– The declaration of existence with the tax services to obtain the tax identification number (NIF), and this within a maximum period of 30 days after collecting the card from the self-entrepreneur.
– Presentation of commercial bank accounts every six months;
– Statement of billing and payment of royalties to the tax authorities.

In addition, the government plans to create a body that will be responsible for maintaining the National Register of Self-Entrepreneurs, for issuing the self-entrepreneur card and for controlling the activities governed by the new law.

What are the advantages that the text of the law offers to self-entrepreneurs?

The provisions of the law on the statute of self-entrepreneurs allow people who aspire to launch their projects to do so legally and benefit from social protection 🇧🇷

Then, it makes it easier for digital professionals to export their skills, namely with the help of the new Bank of Algeria ratings that allow cash transfer the export of digital services to Algeria.

    National social security fund for non-employees, CASNOS

The new law will allow freelancers to benefit from legal status and social coverage.

Other benefits that the law provides include: (a) a single tax regime (IFU) at a rate of 5%; (b) the maintenance of simplified accounts; (c) exemption from registration in the commercial register; (d) subjection to a preferential tax regime🇧🇷 (it’s the social security🇧🇷 (f) the possibility of opening a Bank accountcommercial.

That said, self-entrepreneurship isn’t just reserved for young people who work independently. Employees can also claim it and legally carry out two activities at the same time. In fact, the President of the Republic signed, on Monday, December 19, the law on the general status of the civil service and which enshrines the right of leave for the formation of a company by civil servants, contractors and administrators.

🇧🇷 READ ALSO: Tebboune signs the law on the Self-Entrepreneur Statute

The entry into force of these two laws “is likely to encourage Algerian skills to access the world of entrepreneurship to contribute to the country’s economic development”, says the Minister of Knowledge Economy and Startups-up, Yacine Oualid.

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