Through the latest ministerial order, the Ministry of Finance has announced the change of National Accounting Standard no. 15, which affects all business units classified as “micro entities”.
Specifically, starting from the financial period which begins on January 1st, 2022, the submission of annual financial statements and the keeping of the supporting financial documents will be mandatory for all these entities.
Until today, micro-enterprises submitted electronically the simplified income tax statement, while all economic entities with an annual turnover greater than 5 million ALL had the obligation to submit Financial Statements. Now, this restriction was removed, leading to a standardization of the Reporting methods on all the reporting entities in Albania.
This step was taken to ensure further transparency in the declaration of the annual profit from economic activity and also contributes to the efficiency of taxes collection.
The preparation of Financial Statements, different from the Simplified Income Tax Statement, requires expertise in the field of accounting. This creates the immediate need for every micro-entity to have an accountant, who prepares Financial Reports in accordance with the National Accounting Standards.
Judging from the small enterprises’ point of view, this means a slightly increased cost of operating activity, while for experts in the field of finance and accounting and providers of accounting and financial consulting services, it means new employment opportunities, new cooperation contracts and certainly, further development. For additional information or assistance by our local advisors please contact our Country Executive, Ms. Drilona Likaj, at our Eurofast office in Albania at email@example.com
Eurofast is a regional business advisory organization employing local advisors in over 22 cities in South East Europe & the Middle East (SEEME). The Organization is uniquely positioned as a one-stop-shop for investors and companies looking for professional services in Tax & Transfer Pricing – Payroll & Employment – Accounting & Audit – Advisory & Corporate.