Albania: Business Environment
Zero-rated items include: exports of goods; international transport; services relating to maritime activities; supplies under diplomatic arrangements; supply of gold to the Central Bank of Albania; intermediary services related to zero-rated supplies or services rendered abroad.
A 6% reduced rate applies to accommodation services by the accommodation facilities; supplies made within five-star accommodation structures of an internationally known trademark; supplies of accommodation and restaurant services, excluding beverages, by the certified structures; agritourism; supplies of advertising services by audio-visual media; licensed public transport equipped with electric motors, with nine plus one places or more; books; supply of construction work services for public investments in sports clubs/sports federations or for investments in sports infrastructure undertaken by private entities.
All costs that are not supported with fiscal invoices or expenses paid in cash of amounts exceeding ALL 150,000 are also considered non-deductible, the same as for benefits in kind and gifts, representation and reception expenses exceeding 0.3% of annual turnover, sponsorship expenses exceeding 3% of profit before tax and sponsorships of press and publications exceeding 15% of profit before tax, and donations for recovery from natural disasters exceeding 5% of profit before tax.
There is no tax regulation regarding donations to charities, fines and taxes paid; however, these are generally considered as non-deductible. Tax losses can be carried forward in full for up to three years (five years for business projects valued above ALL 1 billion). The carryforward is not allowed if more than 50% of the direct or indirect ownership of the share capital or the voting rights were transferred during the fiscal year. The carryback of losses is not allowed.
Social security contributions payable by the employer amount to 16.7% of salary (15% for social security, 1.7% for health insurance). For 2023, the gross salary base for calculating social security contributions ranges from ALL 34,000 to ALL 149,953. The employer is required to compute the contributions and submit payment by the 20th day of the subsequent month after the payment was made.
Stamp duties are levied in the form of notary fees that apply to all transactions involving movable and immovable property (levied up to ALL 1,000). Notary fees vary between 0.23% and 0.35% of the transaction value for real estate and between 0.23% and 0.3% for movable property.
Property transfer taxes vary between ALL 100 and ALL 2,000 per square metre for commercial property and amount to 2% of the sale price for any other property.
The fee for the registration of a business entity is ALL 120 (waived if made online).
Albania | Eastern Europe & Central Asia | United States | Germany | |
Number of Payments of Taxes per Year | 35.0 | 13.9 | 10.6 | 9.0 |
Time Taken For Administrative Formalities (Hours) | 252.0 | 226.2 | 175.0 | 218.0 |
Total Share of Taxes (% of Profit) | 36.6 | 36.5 | 36.6 | 48.8 |
Source: Doing Business, Latest available data.
Income tax (Employment income) - 2023 | Progressive rate |
Monthly personal income from employment (ALL) | Taxable income per month (ALL) |
From ALL 0 to 40,000 | 0% |
From 40,001 to 50,000 | 0% on employment income up to ALL 30,000; 6.5% on excess over ALL 30,000 |
Over ALL 50,000 | 0% on employment income up to ALL 30,000; 13% on employment income from ALL 30,001 to ALL 200,000; ALL 22,100 + 23% on excess over ALL 200,000 |
Income other than from employment | 15% (8% for dividends) |
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Latest Update: November 2024