Entrepreneurs > Declaration and Payment >
How to report the annual information?
With the creation of an entrepreneurship arises the obligation to complete the declaration according to the tax responsibilities for which the taxpayer is registered (income tax, VAT, social security and health care, tax on income from employment and taxes / other taxes depending on the object of the entrepreneurial activity). The declaration is drafted based on the forms approved by the Guidance of the Minister of Finance.
The declaration of taxable income is completed and submitted on an annual basis. Every taxpayer prepares the annual declaration of taxable income and submits it to the tax administration by March 31, of the following year, presenting at the same time the Financial Statements of the Company, as well as any other data specified in the Guidance of the Minister of Finance pursuant to the Law no. 8438, dated 28.12.1998 "On income tax" as amended.
These information are subjects of the self-declaration, which shall be completed and paid for by the taxpayer in the tax authority's account at the time of submission of the annual declaration of taxable income. Each taxpayer makes a self-declaration of the amount of tax liability or contribution, without waiting for the assessment, notification or request of tax administration, and pays the tax on the account of tax authorities.
The information included in the annual declaration of taxable income includes data for the calculation of taxable income (financial statements).
The Balance-sheet is a financial statement that shows the financial situation (assets, liabilities and equity) of a reporting entity to a specific date.
The statement of income and expenses is another financial statement that shows the economic performance (revenues, expenses and profit / loss) of the reporting entity during an accounting period. The statement of cash flow shows cash flow (receipts and payments in cash and cash equivalents) of a reporting entity during an accounting period.
The statement of changes in equity shows changes in equity of an entity during a reporting, accounting period, etc. (In accordance with the law "On accounting and financial statements").
The request for information is vast and contains all information possible and necessary to make a tax assessment of taxpayers and taxpayers associated with it, which will serve in the calculation of taxable income for tax purposes
The importance of the correctness in reporting
Due to the important role that the information reported has for the taxpayer, but also based on the fact that it has an impact on third parties, it is important that all the annual information must be reported correctly and on time.
The tax administration, through the declarations of the taxpayers and all other legal mechanisms, collects important information from third parties, employers and from all other related parties who perform the legal obligation of reporting. During its work, the tax administration analyzes the received information from the taxpayers and from related parties, concluding with a tax assessment.
What information shall be reported?
The taxpayer provides for the tax administration the books, records, information, any necessary documents to perform an accurate calculation of their tax obligations.
At the request of the tax administration, the taxpayer provides additional explanation, either orally or in writing. This obligation includes, but is not limited to:
The tax administration request for additional explanation is made only for information related to the commercial transactions of the taxpayer, processes or technical procedures and financial operations between the taxpayers and third parties.
The obligation of third parties to provide information
Information regarding the implementation of international agreements
The persons to whom is addressed the request to provide information
The Tax Administration may require the use of special forms, from the taxpayers for the submission of documents, information or requests. When no specific form is required, any communication required based on the tax legislation, is sent electronically or submitted in writing, unless otherwise provided.
In case of failure to provide the information, are applied the sanctions in accordance with article 126 of Law No. 9920 dated 19.5.2008 "On tax procedures in the Republic of Albania", as amended.