Individuals > Income Taxes > Gross incomes

Gross incomes

Gross incomes are constituted from:

Gross incomes from the salary or remuneration from the employment relationship of the individual.

Incomes from the salaries include:

  • The basic salary;
  • llowances that have a permanent character such as:

    • Allowances for seniority,
    • Difficulty,
    • Distance from the workplace,
    • Particularity of work or service,
    • Other additions of compensation made by other laws and bylaws.

Other remunerations include:

  • All revenues or other remunerations deriving from the results of work at the current place of employment of the individual.
  • The income of the individual in the form of remuneration from the special fund,
  • The incomes from funds generated by the various legal or statutory acts of the companies, as the 13th  salary, or various payments of this nature.
  • The incomes generated from the participation in commissions, committees, councils, board of directors, supervisory councils, etc.

Are exempted the income from salaries and bonuses from the labor relations of the consular officers, diplomatic or similar officials in other working place, and international organizations, who, while performing their official functions in the Republic of Albania, in accordance with international conventions or agreements signed or accepted by the Republic of Albania or the Albanian Government, enjoy diplomatic status.

Gross incomes from the dividend për deriving from the participation in commercial companies or business activities.

Is Not included the net profit (after payment of income tax or simplified income tax on small business) of commercial natural persons, regardless of whether the latter are subject to income tax or simplified income tax on small business.

Gross incomes from rental and capital gains from the sale of property, owned by the declarant.

Rental incomes will be considered all incomes deriving from the rental of land, buildings and other facilities serving for housing, industrial and commercial activity, services etc., but not limited to them.
The rental value of the building is defined in the rental notarized contract, according to the legislation in the field. In the contract, among other things, must, necessarily, be clearly defined the address where the building is located, the area in square meters, and the monthly rental value of the premises.

In any case, the rental value of the building shall not be less than the minimum value of rent as determined by the Decision of the Council of Ministers. The minimum monthly value, per square meter of building leased, is equal to 0.3% of its sale price, which in turn is defined in the Guideline of the Council of Ministers  "On approval of the average cost of housing construction by the National housing Authority ", which is approved each year. (The DCM no.469 dated 06.23.2015 "On determining the minimum value of price references rents buildings for tax purposes).

The income tax for transferring the right of ownership, paid by the individual who transfers the ownership of a real estate.

The transferring of the right of ownership means selling or donating the real estate. In this group are included incomes resulting from transferring the right of ownership on real estate, land and buildings.

The tax payments are made in the Register of real estate, before the registration of the real estate.

Gross incomes from banking interests.
Incomes from banking interests are considered the total of interests from personal or shared accounts of the individuals, banks or other financial institutions, as well as all the interests of personal or shared term deposits in the form of a term account, certificate of a term deposit, contract for the term deposit, and any other income in the form of interest.

Net capital gain, created by investments in securities or real estate;

Gross amount earned from the lottery or other games of chance; including the gross income gained in the lottery or gambling as defined by the law "On Gambling in the Republic of Albania"

Gross incomes from intellectual property, licenses, exclusive rights and other property consisting only of rights and that do not have a physical form. These are revenues deriving from the use or right to use any copyright in literature, art, music or science, including the use or right to use cinematograph films, films and various records for the radio or TV, any patent, trade mark, design or model, project, secret formula, information or technological process concerning industrial, commercial or scientific activities.

Capital gained from donation.
Donation is a contract by which one party transfers the ownership, without compensation to the other party, of a certain item, or a real right, which the latter accepts

Gross incomes generated abroad, the Republic of Albania;
Other gross incomes.
In this category are included all earned incomes, which are not mentioned above.  Examples of such incomes are the incomes from emphyteusis and loans.
The term " emphyteusis " shall mean a contract by which a person is entitled to use and improve an immovable property. An income from the emphyteusis is considered, the periodic compensation in cash or in kind, paid to the real estate owner from the person who takes the property in use.

In cases where the person who takes the property in use, according to the contract between the parties, invests in upgrading and adapting the property to his needs, then these costs will be considered as income for the individual owner of the facility and will be liable to tax as if they were coming by the emphyteusis.
Income from loan will be considered any income derived from giving, in the form of a loan by monetary means or other assets related thereto.

Income defined as exempted income from personal income tax under the provisions of the Law "On income tax" (Article 8/1 of this law), are not included in the gross income, for purposes of completing the declaration of incomes.

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