Entrepreneurs > Declaration and Payment > General information

General information

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:

  • completing, signing and returning the questionnaires or other written requests for information or documents from the Tax Administration within 20 days from the date of mailing the request, or sending the electronic request to the taxpayer;
  • meeting with the tax administration employees during office hours to answer questions and to provide information under Article 94 of this Law.

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 agent of withholding the tax at source shall provide for the tax administration an accurate information regarding the taxpayers declarations on the date required to inform

The obligation of third parties to provide information

  • At the request of the tax administration, third parties provide written or oral, information, provides available books and records, as well as other information on the tax liability of a taxpayer, with which they have entered into trade or financial transactions. This obligation includes, but is not limited to:
  • completing, signing and returning the questionnaires in writing, or other requests, in writing, for information or documents from the tax administration, within 30 calendar days from the date when the request is sent by mail or electronically, is received or estimated to be received from a third party;
  • meeting with employees of the Tax Administration during normal office hours at the premises of the economic activity of the third party or in the offices of tax administration, to answer questions and provide information on the basis of a written summons.

Information regarding the implementation of international agreements

  • At the request of the tax administration, for the purpose of implementing the international agreements on tax matters or for the purpose of international agreements, which provide administrative assistance in tax matters, which are in force in the Republic of Albania, every person must provide information in accordance with the provisions of the international agreements in the tax area, including, but not limited to, the information held by banks and other financial institutions.

The persons to whom is addressed the request to provide information

  • A written request for information is sent to:
    Legal persons for:
    • dividends paid to shareholders or partners;
    • persons with whom they are conducting or have conducted financial or commercial transactions;
    • payments made to subcontractors or on behalf of the subcontractor;
    • debtors and creditors;
  • banks and financial institutions for:
    • interest payments;
    • deposits and liabilities at the end of the year;
    • banking operations;
    • register of bank accounts on behalf of taxpayers, including the trade name and the personal identification number;
  • brokerage or collective investment funds, transactions titles;
  • real estate agents, for actions towards their customers;
  • buyers or sellers of real estate, the description and the price of the real estate;
  • notaries, notarial actions, for purchase of property, movable or immovable, undertaking contract;
  • legal persons, resident and non-resident for payments made to non-resident persons;
  • state institutions and officials of the state administration;
  • other contractors of the taxpayer;
  • donors, international organizations, NGOs, local and foreign, for the payment made to the taxpayer for the supply of goods and services.

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.