The most important sources of government revenue have been oil and gas royalties. Algeria's tax system has been streamlined through the replacement of a number of different taxes by a value-added tax, 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.
Algeria's 1993 investment code offered foreign investment companies a three-year exemption from VAT, a property tax abatement, lower customs duties, and a two to five year exemption from corporate income taxes. The tax break was meant to stimulate investment in Algeria's export market. After 1993, foreign workers whose monthly salaries exceeded $1,333 per month paid a 20% income tax, instead of one up to 70%.