A Comprehensive Analysis of the Influence of Taxation Policies on the Financial Performance of Companies in Algeria: A Case Study on the Oil and Gas Sector in Algeria

Abstract

This case study analyzes the influence of taxation policies on the financial performance of companies in Algeria's oil and gas sector. A questionnaire was distributed to employees of Sonatrach, the state oil company, to gather perspectives on the relationships between taxation policies and key performance indicators. Three hypotheses were tested through linear regressions examining the impacts of taxation policy type, corporate tax rates, and fiscal incentives/tax reductions. The results supported the hypotheses, finding indirect taxes have a larger negative effect than direct taxes, higher corporate tax rates correlate with weaker performance, and fiscal incentives positively correlate with metrics like investment and job creation. Descriptive analyses also revealed an improvement in financial indicators in recent years according to respondents. The findings validate prior literature while offering implications for balanced policymaking and financial management practices in the evolving fiscal landscape.