Car owner status: what are the advantages of the new law?

The generalization of the Internet in Algeria is a problem for many young people, especially among university students online self-employment. Programming, web development, graphic design, translation, content creation, e-commerce… everyone is trying to find a place to offer their services and monetize their skills.

However, this burgeoning sector has until now suffered from a major drawback: lack of normative legal basis for activity and legal status for those who implement it. This situation has forced these new types of entrepreneurs to work “under the table” without social protection and without contributing to the formal economy.

Therefore, the Minister of Knowledge Economy and Startups Yacine El-Mehdi Oualid proposed the establishment. self-employed status. The minister’s proposal was not ignored. On December 8, Thursday, members of the National Council accepted draft law “on the status of the car owner”.; and on Monday, December 19, President Tebbun signed the text. It shall come into force as soon as it is published in the Official Gazette.

What conditions must be met to obtain self-employed status?

In the text of the law, “every person who performs an activity is considered a self-employed person profitable individual activity registered in the list of activities entitled to benefit from self-employed status…” However, it excludes “liberal professions, regulated activities and artisans” from its scope. Who can actually benefit from this status?

Yacine El Mehdi Oualid

Yacine El Mehdi Oualid, Minister of Knowledge Economy, Startups and Micro Enterprises

Although not only them, the provisions of this text of the law in the first place players in the digital economy freelancers: IT developers, digital marketers (e-commerce), content creators, community managers, graphic designers… But it also hires VTC drivers (currently around 60,000 in Algeria) and language service providers (writing, translation, etc.). ) aims. .

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Thus, the status of auto-entrepreneur constitutes activities that have not been regulated by any legal framework to date. However, the law requires a number of conditions to obtain this status, including:

– Registration in the National Register of Car Owners;
– declaration to the Social Security Fund of Non-Employees (CASNOS);
– Declaration of presence in the tax services to obtain a tax identification number (NIF) within a maximum period of 30 days after the card is taken from the auto-entrepreneur.
– Submission of commercial bank accounts every six months;
– Declaration on turnover and payment of royalties to tax authorities.

In addition, the state authorities plan to create an organization that will be responsible for maintaining the National Register of Auto-owners, issuing auto-ownership licenses and monitoring the activities regulated by the new law.

What advantages does the text of the law offer to auto-entrepreneurs?

The provisions of the law on the status of an auto entrepreneur allow people who want to implement their own projects to do so. benefit from legal and social protection .

Then, it makes it easier for digital professionals to export their skills, especially with the help of the new Bank of Algeria ratings currency transfer of income 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 advantages provided by the law include: (a) a single flat tax (IFU) regime at the rate of 5%; (b) simplified accounting; (c) exemption from registration in the commercial register; (d) Subject to a preferential tax treatment; (e) the social security; (f) Ability to open a Bank accountcommercial.

That is, the auto-entrepreneur quality does not only apply to self-employed young people. Employees can also request this and legally engage in two activities at the same time. Indeed, on Monday, December 19, the President of the Republic signed the law establishing the general state of the civil service and the right to leave for civil servants, contract workers and administrators to create businesses.

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The Minister of Knowledge Economy and Startups, Yacine Oualid, says that the enactment of these two laws “will encourage Algerians to enter the world of entrepreneurship to contribute to the economic development of the country”.

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