Declaration form

Filling in the declaration
The Annual Declaration of incomes is filled in by the individual who has the obligation to declare.

• The individual who has the obligation to fill in and submit the annual declaration of personal incomes has the right to appoint an attorney, his legal representative to fill in and submit his declaration. prokurë, përfaqësuesin e tij ligjor për të plotësuar apo dorëzuar deklaratën e tij.
• The representative of the declaring individual is a person selected by him to represent in relation to tax matters. The representative of the individual assumes the rights and obligations of the individual and the tax administration is obliged to cooperate and operate with him.
• The Appointment of a representative shall not relieve a declaring individual of tax liability.

He remains legally responsible for the fulfillment of his tax obligations.

• The fact that the representative of the individual, can make a mistake in the declaration and payment of taxes, does not exonerate the latter from the responsibility for the mistake.

To be identified as a declarant, as the fiscal code of the individual serves:

• The number of personal identification, on his identification card.
• The non-resident person, the number of personal identification in the individual non-resident ID card.

The declaration contains information about:

• The gross incomes,
• The deductible incurred expenses,
• The taxes paid during the taxable period (calendar year)

The model and content of the Declaration
The Digital form of the individual declaration of incomes is approved by the guidance of the Minister of Finance. Below you will find the approved model of declaration (Form D1 and D2):

Model Declaration (Form / D1):
Individiual annual declaration of incomes

Model Declaration (Form / D2):
Individiual annual declaration of income for foreing individuals

• In the first declaration is stated the relevant tax period related to the calendar year in which the individual has obtained the incomes, as well as his identification data.
• In the second part,  are stated the data that enable the calculation of tax, namely:

The gross incomes

• The gross incomes from salaries or other remunerations from the employment relationship for individuals, deriving for the total salaries and remunerations that the declarant benefits from all employment relationships during the tax period.
• The profit from the development of the activity as a small business, is filled in  by the declarant for the  amount of taxable profit that the self-employed declarant earns from his small business with a turnover of over 2 million (two million)ALL.
• The gross incomes from the dividends for participation in trade associations or business activities shall be completed, the amount of the dividends that the declarant benefits from all his participation in commercial or business activities.
• The gross incomes from rents shall be completed for the total gross incomes that the individual earns from renting one or several buildings.

Clarification:
In the case of rental between two individuals, the beneficiary of the incomes is required to declare and pay the appropriate tax authority tax at 15% of the revenues collected, not later than the 20th of the month following the month in which it was carried out the payment. For this purpose serves the form:
Declaration of tax income from other sources

• The Capital gains from the sale of immovable property (land, buildings) owned by the declarant shall be completed for the earned capital gains.

The selling value of the property is determined in the notarized selling contract, which is signed by the parties (seller and buyer).

The capital gain is equal to the price difference of the sale to the purchase price of the real estate.

• The gross incomes from bank interests shall be completed for the total interest incomes of the bank that the individual has benefited during the tax period.
• The net capital gain deriving from the investments in securities or real estate shall be completed for the total profits from the investments in securities, selling of shares, real estates, except for land and building.

The term "capital gain" means the difference between the selling value and the purchase value of the real estate property

In case of sale of shares, the taxable value is the difference between the incomes from the sale of shares with the nominal or purchase value of the shares.

• The gross amount, earned from the lottery or other gambling games, shall be completed for total gross incomes earned from the lotteries or other gambling games.
• The gross incomes from intellectual property, licenses, exclusive rights and other assets that consist only of rights that has no physical form shall be completed for the total gross incomes of all, as described above.
• The capital gains from the donation shall be completed for the amount of capital gains realized from the donation. In cases of transfer of the right of property through donation, the transaction is considered as taxable and for the effect of calculating of the tax liability will be processed as in the case of transfer of the right of ownership of land and building, based on the act of sale.
• - The gross incomes gained outside the territory of the Republic of Albania, shall be completed for the total gross incomes, realized outside the territory of the Republic of Albania.
• The other gross incomes, not mentioned above, should be completed for the total of the other gross incomes, which are not included in the incomes described above.

Deductible Expenses

• The amount of bank loan interest received, tuition for him or for children and persons in custody, shall be completed for the amount of bank loan interest received for tuition from the banks within the territory of the Republic of Albania.
• The expenses for medical treatment for himself or for children and persons in custody for the uncovered part of the mandatory health care insurance shall be filled based on invoices issued by the health institutions within the territory of the Republic of Albania, to justify the expenses for treatment, as stipulated in the bylaws.

The output tax payable
Is calculated the amount of taxable incomes for the difference between:

• The amount of gross incomes, with
• The amount of deductible expenses.

Is Calculated the amount of tax, resulting from the multiplication of:

• The taxable incomes, with
• 15% tax rate.

Taxes paid during the taxable period
Special sections of the declaration are filled in with:

• The taxes paid during the calendar year, calculated on gross incomes.
• The tax calculated and paid on the gross incomes generated outside of the Republic of Albania.
• The foreign crediting tax is the amount in ALL of the foreign tax paid by the individuals on incomes sourced from outside the Republic of Albania, to the extent that such incomes shall be taxed at 15% tax rate.

The excess tax paid for the previous year and not refunded is filled in for the amount of the excess tax paid during the previous year and resulting as not refunded up to the date of declaration.

Request for refund is filled in for the amount requested to be reimbursed.

Excess Tax (refund) is filled in for the difference if the tax paid during the tax period is greater than the tax calculated according to the statement.

Mandatory tax to be paid is filled in for the difference between:

• The amount of tax calculated according to the declaration, minus
• The amount of tax paid,
• Minus the excess tax paid the previous year and  not refunded.

Mode of declaration
Submission form:

• D1 form - Annual Individual Declaration of Income;
• D2 form - Annual Individual Declaration of Income for Foreign Individuals is made through the electronic form and is available on the official website of the General Directorate of Taxes

Filing in the declaration within the deadline
The resident and non-resident individuals, subject of declaration, submit the annual declaration of income tax at the central administration, not later than April 30th  of the year following the tax period for which the declaration is made.