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The General Directorate of Taxes would like to inform all taxpayers that Instruction No. 4, dated 21/02/2019 “On some addenda and amendments to the Instruction No. 5, dated 30/01/2006 “On income tax”, as amended, has been published in the Official Journal No. 23, dated 26 February 2019.
Below are the main amendments to this instruction:
The tax rate on income from employment as per the level of gross salary shall be applied according to the following categories:
Subject to the withholding tax shall also be:
Subject to the income tax shall also be:
Every non-resident person who is not registered pursuant to the Albanian legislation and is not subject to the Tax on Income. To fulfil this obligation, the non-resident persons shall fill in the special declaration of taxable profits, which must be submitted by March 31st of the next year and pay the tax upon submission time.
For the purposes of calculating the fiscal year results:
Un-recognized expenses shall be considered the expenses for per diems that exceed the 50% of the annual gross salary fund.
Tax on Dividend:
The Tax on Dividend shall be applied at the rate of 8%. For non-allocated profits generated in 2018 and before, including reserves and capitalized profits, this rate shall be applied provided that:
In case the above conditions are not met, the taxpayer shall pay a 15% Tax on Dividend.
Regarding bad debt (provisions):
In case the movable (personal) and immovable property that ensures the loan is executed prior to the deadlines set by law for writing off the bad debt, the previous banking provisions, recognized as deductible expenses, shall continue to be recognized as such.