In Albania, April 30 is a critical date for taxpayers, marking the deadline for the declaration and payment of Personal Income Tax via the Annual Individual Tax Declaration (DIVA) for the previous fiscal year. This article aims to provide a thorough understanding of the DIVA process, highlighting its significance and obligations for both residents and non-residents.
Overview of the DIVA Declaration Process
The DIVA declaration process for the fiscal year 2023 maintains consistency with previous years, encompassing similar categories and obligations. Despite the impending implementation of the new “Income Tax” law in 2025, which will impact declarations for the fiscal year 2024, the current process remains unchanged.
Key Obligations and Categories
The Tax Authorities in Albania issue a reminder to both resident and non-resident individuals meeting specific criteria. Those with an annual gross income exceeding ALL 2,000,000 in 2023 or individuals engaging in moonlighting activities for at least one tax period within the year are legally obligated to complete the “Annual Individual Income Statement” as part of the DIVA process.
Exemptions and Clarifications
It’s essential to note that individuals classified as ‘self-employed’ and those employed by an entity, whether an individual or a legal entity, from whom they receive income in the form of wages and employment-related benefits, are exempt from declaring the DIVA. This exemption is justified by the ‘self-employed’ category’s responsibility for paying social and health insurance, with their ‘Gross Salary’ section specified as zero.
Pre-Filled Data and Editable Fields
The DIVA 2023 declaration automatically includes pre-filled data regarding annual gross income from wages or benefits derived from employment relationships for individuals. Additionally, the calculation of Income Tax from Employment is provided. While these sections are prefilled, they remain editable fields, allowing declarants to review and make necessary changes. Moreover, the amount paid during the year related to Income Tax from Employment is prefilled, facilitating a smoother declaration process.
Significance of Income Declaration
Beyond being a legal obligation, the declaration of income provides individuals with an additional guarantee regarding the justification of their wealth. It promotes transparency and accountability while ensuring compliance with tax regulations.
In conclusion, as Albania prepares for changes in tax laws in the coming years, staying informed and compliant remains paramount for taxpayers and authorities alike. Should you have any inquiries or need guidance, reach out to Eurofast tax experts in Albania at tirana@eurofast.eu.
Ingrid Kodra
Global Mobility Consultant
Eurofast Tirana
tirana@eurofast.eu