News from Albania

  • Albanian government plans to include small businesses in the VAT scheme
    The Valued Added Tax is one of the most important taxes in the Albanian fiscal regime. . According to the current legal provisions all businesses are subject to VAT declaration and payment, with the exception of small businesses, which are considered to be the ones with annual turnover below LEK 5 million (about EUR 37,000). Recent developments have introduced the...
  • Albanian unemployment rate drops during Q2
    The Albanian Institute of Statistics (INSTAT) has reported that during the second quarter of 2017 the unemployment rate in Albania has decreased to 13.9%. This is the lowest level of unemployment since 2012. In 2014 the level of unemployment reached the highest level - a record 18.2% - and since than it has been constantly declining. The unemployment rate is...
  • IPA between Albania and United Arab Emirates enters into force
    During the visit to Albania of the United Arab Emirates Minister of Energy In October 2015, the two countries signed an Investment Protection Agreement. This Agreement was published in the Albanian Official Gazette in December 2015. Article 20 of the agreement provided that the entry in force of the agreement would depend on the domestic constitutional provisions of each signatory...
  • Albania approves Law on remission of unpaid tax and custom duties
    With Law no.33/2017, which was approved on the 21st of April 2017 and entered into force on the 7th of May 2017, the Albanian Parliament relieved businesses from old unpaid tax and custom duties. The Law completely dismissed tax and custom duties arising before 2010 irrespective of their type and origin, whether liabilities or fines. For the period between January...
  • To Petya or NotPetya; this is how to protect yourself!
    A new ransomware has risen and is spreading across Europe like wild fire. This new malware is creating chaos across businesses, from supermarkets to shipping ports, ad agencies and law firms. The new ransomware - code named “NotPateya” - shares some very similar characteristics to a very recent malware “Wannacry”. About NotPateya NotPateya gets its name from an older malware...
  • Albania changes Hydrocarbons Law
    By adopting law no.6/2017, the Albanian Parliament amended the 1993 Law on Hydrocarbons (Exploration and Production). These last changes aim to make the law more easily applicable, as well as to bring it closer to the acquis of EU. The amendments also focus on safeguarding these important public assets. Law no.6/2017 dated 02.02.2017 includes several definitions which were not originally...
  • Double Taxation Treaty between Albania and Iceland becomes effective
    On 26th of September 2014, the Republic of Albania and the Republic of Iceland signed a treaty for the avoidance of double taxation and the prevention of tax evasion regarding income tax. This agreement was ratified by both countries and entered into force on the 6th of January 2016. Under the treaty provisions, its general implementation has begun as of...
  • Albanian Parliament amends the Law on Tax Procedures
    In November 2016, the Albanian Parliament approved a large number of changes in one of the main laws regulating the activity of the Tax Authorities in the country, the Law on Tax Procedures. The amendments affected several aspects of the tax procedures and mainly focused on – among other issues - transparency, increase of the electronic communication between taxpayers and...
  • Albanian Transfer Pricing Regulations
    Transfer pricing rules have been present for more than a decade in the Albanian Corporate Income Tax (CIT) Law, but specific and detailed regulations on the application of these rules was only published in the Official Journal No 70, dated 20 May2014. The recent changes have totally transformed Article 36 of the Law on Income Tax (No. 8438, dated 28.12.1998)...
  • Albania changes VAT exemption rules
    The 2014 Albanian VAT law aimed to harmonize the Albanian VAT legal framework with the European Union acquis in this field, specifically with Directive 2006/112/EC. The new law included many provisions not covered by the previous law. Since the entry into force of the new law, several bylaws and directives have been adopted, in order to facilitate the applicability and...
  • Legal procedures for the registration of a new commercial company in Albania
    The new laws’ approval on the National Registration Center and the commercial companies, respectively in 2007 and in 2008, represented a revolution in the process of the registration of commercial companies in Albania. Continuing with the reform aiming at the procedures’ simplification, in November 2015 the parliament of the Republic of Albania approved the law “On the National Business Center”,...
  • Amendments to Albanian property tax requested by IMF
    Albania | April 2016 | Property taxes in Albania are regulated by the law on the local tax system and consist of the building tax and the agricultural land tax. Subject to the property tax are all physical and legal persons, locals or foreigners, who own an immovable property (either agricultural land or a building). Taxpayers are determined based on...
  • Albania introduces changes in the social contribution system for freelancers
    Albania | March 2016 | On January 21st, 2016, the Council of Ministers of the Republic of Albania adopted a new decision, which aims to determine the reference monthly salary for purposes of calculating the mandatory social contributions for the self-employed that practice a licensed profession. The decision affects some of the most widespread professions in Albania, including -among others-...
  • Albania and Morocco sign an Agreement on the Avoidance of Double Taxation
    Albania | February 2016 | Albania and the Kingdom of Morocco preliminarily agreed on the need for a Double Tax Treaty back in 2012 when treaty negotiations commenced. The willingness to conclude such an agreement was reiterated in October of 2014 during Albanian parliamentary officials’ visit to Morocco. The treaty was finally signed during the visit of the Albanian Minister...
  • Albania abolishes taxes for small businesses
    Albania/December 2015 The government of Albania has announced a new tax reform which includes the removal of the obligation to pay the simplified income tax for small businesses with annual turnover up to 36,000 Euros (or 5,000,000 ALL). This reform, which will enter into force as of the 2016 fiscal year, also includes a tax reduction of 2.5 percentage points...
  • Albania and Kosovo sign a new agreement on double taxation
    Albania/November 2015 An agreement for the avoidance of double taxation of income and capital taxes and the prevention of fiscal evasion, concluded between the Republic of Albania and the Republic of Kosovo, entered into force in March 2015. The agreement replaced and updated the previously-valid 2004 agreement, which was concluded by the Council of Ministers of Albania and by the...
  • Oil and gas exploration in Albania
    Albania/October 2015 In May 2015, Albania initiated an international call regarding seven oil and gas onshore and offshore blocks. The Albanian competent governmental institution, the Albanian Agency of Natural Resources (AANR), has publicized the map featuring the free blocks for exploration. Considering Albania’s high potential of oil and gas reserves, this is a good opportunity for foreign companies to invest...
  • Albania changes the double taxation agreement with Switzerland
    Albania/October 2015 In 1999, Albania and Switzerland signed an Agreement the main scope of which is the avoidance of double taxation. The general objective of this kind of agreements is to make sure individuals and companies operating and residing in both countries will pay relevant taxes only once, therefore reducing their fiscal burden and facilitating their economic activities. Fifteen years...
  • New tax incentives for operating in free zones in Albania
    Albania/September 2015 The Government of Albania has approved some amendments to the Law on the Establishment and Functioning of Economic Zones. The amendments introduce new regulations and new tax incentives for operating in the Free Zones. According to the approved amendments, the Corporate Income Tax is reduced by 50% for the entities that operate in Free Zones for the first...
  • Categories of foreigners working in Albania
    Albania/March 2015 Foreign citizens, the employees, employers or self-employed in registered entities for fiscal effects in the Republic of Albania, are secured and protected mandatorily, according to the Albanian legislation. The Council of Ministers by decision no. 77 dt. 27 January 2015 published in the Official Gazette No 9 dt. 3 February 2015 excluded the following foreigners working in Albania...
  • VAT Reimbursement Procedure Directive
    Albania/May 2014 The reimbursement of Value Added Tax has been a known concern for businesses in Albania. Many Albanian companies have a considerable amount of refundable VAT still un-reimbursed by the tax offices. The Ministry of Finance with the Directive no.6 dated 27.02.2014 (published in the Official Gazette No. 27 dated 10.03.2014) aimed at giving a solution to this problem...
  • Transfer Pricing: A step forward for Albania
    Albania/October 2014 The Albanian Ministry of Finance issued informative administrative guidelines for taxpayers related to the new Transfer Pricing Legislation. According to the “Instruction on Transfer Pricing” published in June 2014, the Ministry of Finance sheds light on notorious issues as far the taxpayer compliance obligations are concerned. Apart from the Transfer Pricing File, taxpayers in the Republic of Albania...
  • VAT Deferral for machinery/equipment imports in Albania
    Albania/September 2014 The Law no. 7928, dated 27.04.1995 "On Value Added Tax", as amended, implemented a scheme of deferral and exemption from the payment of VAT. Based on paragraph 2.1 of Article 26 of the Law no. 7928, for machinery and equipment imported by taxable persons, which is directly related to their economic activity,  the scheme of postponing the payment...
  • Albanian Transfer Pricing Regulations
    Albania/July 2014 Albanian Transfer Pricing Regulations Transfer pricing rules have been present for more than a decade in the Albanian Corporate Income Tax (CIT) Law, but specific and detailed regulations on the application of these rules have been published in the Official Journal No 70, dated 20.05.2014. The recent changes have totally transformed Article 36 of the Law on Income...
  • Albania Becomes Official Candidate to Join EU
    Albania/June 2014 On 24 June 2014, the European Union has officially named Albania as a candidate country for EU membership. This is subject to the support by EU heads of states at the European Council to be held on 27 June 2014 in Brussels. This is a significant highlight for Albania and EU- Albania relations and the first step for...
  • Transfer Pricing Regulations are now forced in Albania
    Albania/June 2014 Transfer pricing rules have been present for more than a decade in Albanian Corporate Income Tax (CIT) Law, but specific and detailed regulations on the application of these rules have been published in the Official Journal No 70, dated 20.05.2014. The recent changes have totally transformed Article 36 of the Law on Income Tax ( No. 8438, dated...
  • Changes to tax legislation impacting hydrocarbon operations
    Albania/June 2014 A new tax legislation impacting companies operating in the hydrocarbons sector came into effect at the beginning of January 2014. Previously, Law no.7746 on Hydrocarbons, dated July 28 1993 defined VAT-exempted supplies in the hydrocarbon operations to include services supplied by contractors and subcontractors, certified as such by the National Agency of Natural Resources, relating to performance in...
  • Albania changes the Value Added Tax Legislation
    Albania/March 2014 Value Added Tax is the most important tax in Albania. According to the fiscal indicators regarding the consolidated budget, VAT is expected to amount to 8.5% of the GDP for the 2014 fiscal year. VAT is levied on all supplies of goods and services in Albania, and for all imports. The VAT rate in Albania was 20% for...
  • Changes to the Small Enterprises Tax Law in Albania
    Albania/February 2014 At the end of 2013, the Parliament of Albania has approved several laws, which initiate the implementation of the tax reforms declared by the new government after winning the elections. Among other things, one of the major changes was the reform of the small enterprises taxes. The new simplified tax on profits, replaced the two previous taxes paid...
  • Changes in the tax legislation related to the tax representative of non resident taxpayers
    Albania/November 2013 According to the law on Tax Procedures, the non resident taxpayer has the right to assign a representative in Albania. Non resident taxpayers are all those who do not meet at least one of the required criteria, provided by Article 8 of the law, that defines the resident taxpayers. According to the law, resident taxpayers are all the...
  • Albania ratifies the Convention on Mutual Administrative Assistance in Tax Matters
    Albania/November 2013 On March 1 2013, Albania signed the Convention on Mutual Administrative Assistance in Tax Matters. This agreement was ratified according to the Albanian legislation on August 8 2013, and entered in force on December 1 2013. This convention is adopted in the framework of OECD and the Council of Europe. Albania is the 43rd country to sign this...
  • The Administrative Courts and their impact on the public administration functioning
    Albania/October 2013 Since May 2012, the Parliament of Albania has approved the law for the creation and functioning of the Administrative Courts, at all the three levels of judiciary, including the Supreme Court’s Administrative College. At the moment the administrative disputes are reviewed by the same courts that settle civil and criminal cases. With the exception of some rules and...
  • Know your rights -Tax appeal procedure in Albania
    Albania/September 2013 Taxpayers in Albania has the right of appeal to tax assessment notice, decisions that affect the taxpayer’s obligation on any claim for refund or tax relief, or to any special tax act, related with the taxpayer’s activity. According to tax laws, the tax appeal is held in two legal dimensions, administrative and judicial, which constitute two separate links...
  • Changes to local and employment income taxes
    Albania/July 2013 In April 2013, the Albanian Parliament approved two laws, No. 106/2013 and 107/2013, that provided changes to the laws on personal income tax and local taxes. Both laws have entered into force on April 30 2013. One of the changes that had a major impact, affecting a large number of employees, is the removal of the personal income...
  • Albania signs double tax treaty with UK
    Albania/May 2013 On March 26 2013, Albania and the UK signed a double tax treaty on income and capital. The treaty generally follows the OECD model convention. The withholding tax at source for dividends is set at 5% if the beneficial owner is a company and holding at least 25% of the shares of the company paying the dividends or...