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The General Directorate of Taxes would like to inform all taxpayers that as of 1 January 2019 the new fiscal package has entered into force.
The key legal amendments relate mainly with:
Tax on salaries:
0% for the monthly gross salary up to ALL 30,000;
13% for the monthly gross salary above ALL 30,000 – ALL 150,000;
23% for the monthly gross salary above ALL 150,000.
Source of income: A source of income in Albania shall be also considered income of a non-resident person received due to the services performed for a resident person.
Tax on profit: Every non-resident person who is not registered pursuant to the Albanian legislation and is not subject to the Tax on Income, shall be subject to the tax on profit. The non-resident person shall prepare a declaration of taxable profits, which must be submitted by march 31st of the next year.
Unrecognized expenses: The expenses for per diems that exceed 50% of the annual gross salary fund shall be considered as unrecognized expenses.
Tax on dividend: The tax rate of 8% shall be applied to non-allocated profits generated in 2018 and before, including reserves and capitalized profits, provided that:
Careful! In case of failure to abide by the above terms and conditions, the taxpayer shall pay 15% tax on dividend.
VALUE ADDED TAX
There are changes to the tax rates as follows:
Sub-contractors of inward processing regime: A tax rate of 0% shall be applied for supplying services to process non-Albanian goods with a destination to be re-exported, by authorized taxable persons and their sub-contractors, pursuant to the provisions of the Customs Code related to the operations under inward processing regime.
The rate of farmers compensation: The rate of 6% shall be applied for compensating farmers.
Exemptions from VAT: The following shall be added to the list of exemptions from VAT: