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The General Directorate of Taxes would like to remind that every individual residing in the Republic of Albania, that benefits incomes stemming in the Republic of Albania and abroad, amounting at ALL 2,000,000 (two million) a year, pursuant to the Law No. 8438, dated 28/12/1998 “On income tax”, as amended, shall be obliged to submit the Annual Individual Declaration of Incomes.
The Annual Individual Declaration of Incomes shall be also submitted by non-resident individuals, that perform taxable incomes stemming in the Republic of Albania and amounting above ALL 2,000,000 (two million).
The individuals shall declare the following taxable incomes:
Every individual that is obliged to submit the Annual Individual Declaration of Incomes shall pay due diligence to the accurate completion of the data in the declaration and especially in calculating the income tax from employment, in those cases when the individual receives two or more salaries in one month from different employers.
Failure to accurately fill in the Annual Individual Declaration of Incomes can lead to penalties being imposed on the declarant individual.
The tax calculated on salaries and remunerations from employment relations by the individuals, is a blank box in the declaration and will be filled in by the declarant himself.
The declarant individual shall calculate the tax on personal incomes from salaries and remunerations for all incomes from salaries received during the month, even when these salaries come from different employers. In case when the amount of incomes received in a month from two or more salaries in different employers exceeds the value taxed at zero percent (ALL 30,000), the taxation shall be calculated on the total monthly incomes from salaries (the total incomes from salaries in every employer).
Based on the amount of salaries received in total from all employers, the individual shall make the calculations as per the following scheme:
The taxation calculated in such manner for every month of the year shall be added for the 12 months of the year and entered as a single figure in box no. 4 of the declaration, which represents the annual taxation calculated for salaries and remunerations.
In box no. 22 of the declaration, the individual shall write down the amount of the taxation paid and withheld by every employer during all the months in a year.
The difference between the calculated taxes, written down in box no. 4 of the declaration, with the amount of the taxes paid, withheld at source by the employers, written down in box no. 22 of the declaration, shall represent the amount of the liability that every individual will have to pay to the Tax Administration as a result of his annual incomes from employments.
The amount of taxes calculated and written down in box no. 4 of the declaration, in no case shall be lower that the taxes withheld at source and paid by the employer for incomes from salaries and remunerations regarding current employment relation during the year, written down in box no. 22 of the declaration.
In case of individuals, that in no month have been employed in two places, the amount of the taxes calculated, written down in box no. 4 of the declaration, shall always be equal to the taxes withheld at source and paid by the employer for salaries and remunerations related to the current working relations during the year, written down in box no. 22 of the declaration.
The taxpayers that are not subject to the declaration and have annual gross incomes from all sources amounting at ALL 1,050,000 (one million and fifty thousand) a year (indexed every year), that might be declaring entities, shall benefit from the deduction of expenses, however, it must not exceed that amount.
For purposes of calculating the taxable incomes, these individuals shall fill in the annual declaration of incomes and benefit from the following deductible expenses:
- the amount of bank loan interest obtained for schooling, for yourself or children and persons under care;
- the expenses for medication, for yourself or children and persons under care, for the part not covered by the mandatory health care insurance, as per the definitions regulated by Decision of the Council of Ministers.
The amounts received from the deductible expenses scheme shall be credited by September 30th of the year succeeding the tax period related to which the declaration has been drafted for.
Non-resident persons shall not benefit from the right of calculating the deductible expenses.
Declaration of incomes, apart from being a legal obligation of every individual subject to declaration, is an additional guarantee regarding the justification of his/her wealth.
The declaration on incomes received in 2017 shall be submitted only electronically, via e-filing system, not later than April 30th of 2018.
For any further information, please visit the official website of the Tax Administration, www.tatime.gov.al.
You can visit the taxpayers’ service office or the regional directorates of taxes, call in the free green line 0800 00 02 at the Call Centre, as well as use Live Chat service.