Declaration

The personal income tax is calculated on the incomes of individuals, who are obliged by law to declare them.

The mandatory declaration

The resident individuals, who create taxable income in the Republic of Albania and abroad, submit an annual declaration of income tax at the central administration.

The resident individuals are obliged to complete and submit the Individual Annual Income Tax Declaration, if they generate  an annual gross income from all sources (within and outside the Republic of Albania), in the total amount over 2 million (two million) ALL.

In case the resident individuals generate an annual gross income from all sources, inside and abroad, amounting to less than 2 million ALL, they are not required to complete and submit the Individual Annual Income Tax Declaration

The non-resident individuals, who generate taxable income at the source in the Republic of Albania, submit an annual declaration of income tax at the central administration.

The non-resident individuals are obliged to complete and submit the Individual Annual Income Tax Declaration, if they generate an annual gross income at source in the Republic of Albania, the total amount of over 2 million (two million)ALL.

If the non-resident individuals, generate an annual gross income at source within the Republic of Albania, amounting to less than 2 million (two million) ALL, are not required to complete and submit the Individual Annual Income Tax Declaration.

Exemption from disclosure
All individuals who generate an annual gross income from all sources in the total amount of less than 2 million (two million) ALL are excluded from the liability for the completion and submission of the Individual Annual Income Tax Declaration,

Optional declaration
The Annual declaration of income may be complemented by any person who, even though doesn’t have the legal obligation, based on the reason that he wants to benefit from the scheme of the deductible expenses, as defined by this Law, when this person meets the condition to benefit from the deduction of expenses.

In this case, the amount of annual gross income from all sources must be not more than 1,050,000 (one million and fifty thousand) ALL per year (index able annually).