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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:
- For monthly salaries amounting at ALL 30,000, the taxation shall be zero percent
- For the monthly salaries amounting at ALL 30,001 – ALL 130,000, the taxation shall be 13 percent of the amount above ALL 30,000
- For the monthly salaries amounting from ALL 130,001 and above, the taxation shall be ALL 13,000 plus 23 percent of the amount above ALL 130,000
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 taxes on salaries and remunerations from employment relations shall be calculated only for salaries and remunerations received by the individual, based on a regular employment relationship and according to the amounts declared by the employer in the respective payrolls. Any other income, received as a result of participating in different commissions, committees, board of directors, supervisory councils, etc., regarding which the 15% withholding tax has been kept beforehand by the beneficiary of the service and have not been declared as salaries by the latter, shall not be calculated as a salary received by the declarant individual. The total of salaries and remunerations declared by the declarant individual shall comply with the total of salaries and remunerations declared for him by the employers, as per the declaration of the respective payrolls administered by the Tax Administration.
For any further information, please visit the official website of the Tax Administration, www.tatime.gov.al, visit the taxpayers’ service office or the regional directorates of taxes, call in the free green line 0800 00 02 at the Call Centre.
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.