- As of the 2027 tax year, only one item has been enacted and published: the VAT threshold is lowered to 5,000,000 lek. The others are proposals awaiting Parliament's approval.
- The dividend tax remains at 81 TP3T. The proposal for 151 TP3T has not been voted on, so the December decision is significant.
- The goods you have in stock on the date of VAT registration retain their deductible VAT, provided three conditions are met.
- The capital gains tax remains at 151 TP 3T. The increase to 171 TP 3T was withdrawn on October 28, 2026.
- Three decisions can be made by the end of December. The others are preparations, not decisions.
The 2027 taxes are divided today into two very different groups. One single item has been enacted, published, and bears a written effective date. All the others are proposals in two draft laws awaiting the Assembly's review in November and December.
The distinction is not technical. It determines which decisions you can make today with confidence and which ones only need to be prepared. This guide separates the two groups, shows exactly what's affected in your business, and provides guidance for each item, along with the section that covers it.
Read also: Fiscal Package 2027: What's Proposed for Business
Taxes 2027. What is fact and what is still a proposal.
This table is the whole topic at a glance. The last column is the one that matters.
| Voice | Today | From 2027 | Status |
|---|---|---|---|
| VAT registration threshold | 10,000,000 lek | 5,000,000 lek | Decided and published |
| Dividend Tax | 8% | Proposed 15% | Wait for Parliament |
| DVB standards | 20% | Proposed 21% | Wait for Parliament |
| Accommodation in the accommodation facilities | 6% | Proposed 10% | Wait for Parliament |
| Staple foods | 20% | 6% for 14 categories | Pret Parliament, the list with a special decision |
| Profit Tax | 15% | 15%, no change | The increase to 171 TP3T was withdrawn on October 28. |
| The first pay bracket at 131% | up to 200,000 lek per month | up to 300,000 lek | Wait for Parliament |
| The new 30% range | does not exist | over 700,000 lek per month | Wait for Parliament |
The VAT threshold was set by Council of Ministers Decision No. 822, dated October 28, 2026, published in the Official Gazette No. 233 of October 29, 2026. It does not await a vote, because Article 117(2) of Law No. 92/2014 delegates the threshold to the government and the law itself does not specify any figure.
All other provisions are written norms within the laws. They cannot be changed by a government decree, so they await a vote.
Dividend. The only decision with measurable costs.
This is the only line where the figure at the end of the calculation changes in December 2026. The dividend tax is 81 TP3T today, under Article 24, paragraph 3, letter “a” of Law No. 29/2023. The proposal raises it to 151 TP3T.
Norma 15% is not new. It was in effect until 2019, when it was lowered to 8%. So the proposal restores the previous rule.
| Of the 1,000,000 lek distributed | With 8% | With 15% |
|---|---|---|
| The tax the company pays | 80,000 lek | 150,000 lek |
| What is left for the partner? | 920,000 lek | 850,000 lek |
Which moment sets the standard?
The answer is provided by Article 56(2) of Law No. 29/2023. The moment that matters is not the payment of the money to the partner, but the decision of the statutory body on the distribution of profit.
When the dividend is paid, tax is withheld at source. When it is declared but not paid, tax is withheld and transferred at the end of the third month after the month of the decision. Thus, the obligation arises from the decision, even if not a single lek leaves the treasury.
Orientation
If you have undistributed profit and have already decided to distribute it, complete all actions by December 2026. Make the decision, payment, and tax deposit by December. This way, the transaction is carried out entirely under the rule in effect.
This doesn't mean you have to distribute. Distributions take money out of the company, and reinvestment often remains the best choice when you have an investment plan or need working capital. The proposal doesn't change that calculation. It only makes it more expensive to postpone a decision you've already made.
An openly stated limitation. The final text has not been published, and it is not known whether it will include transitional provisions. For a December decision where the payment deadline falls in 2027, the applicable rate must be confirmed with the tax administration. Closing the action by 2026 removes this uncertainty.
Read also: Tax on dividends, rate and order of procedures
VAT threshold. Who is affected and what is being prepared.
It affects businesses with annual turnover between 5,000,000 and 10,000,000 lek. Today they are outside VAT; as of January 1, 2027, they will be included. According to the official document of the Ministry of Finance dated October 26, 2026, this concerns 17,516 businesses.
Three things need to be known before anything else is calculated.
- Measurement is carried out on a calendar-year basis. Article 75, paragraph 1, of the directive states that a consecutive 12-month period is considered a calendar year. The first year measured at 5,000,000 lek is the year 2027.
- When the threshold is exceeded during the year, VAT is calculated only on the amount by which it is exceeded, not on the total turnover, Article 75(2).
- If you import goods for resale, the threshold doesn't matter at all. Registration is mandatory regardless of turnover, under Article 5(4) of the Directive.
The real cost of input is not 20% of turnover. It's about one-sixth of the gross margin, because the VAT on purchases is deducted from that on sales. For a business with 6,000,000 lekë in sales and 4,500,000 lekë in purchases, this amounts to about 250,000 lekë per year.
Read also: VAT threshold, how it's measured, and what deadline you have
Goods in stock as of December 31. The decision that loses money without being noticed.
This is the area where many businesses will lose money without even realizing it, because the right exists but requires preparation that must be done before the filing date, not after.
Article 76, paragraph 2, of the Directive, in implementation of Article 83 of Law No. 92/2014, grants the right that, in the first tax period after registration, the VAT on inventory goods on hand at the date of registration be recognized as deductible. It applies both to mandatory registration and to voluntary registration.
There are three conditions, and all of them must be met, according to Article 76, paragraph 3.
- Goods to be used for taxable supplies that are eligible for deduction.
- The inventory list, showing quantity and value, along with the date the stocks were recorded, submitted to the tax authority at the time of registration and reflected in the accounting records.
- Any goods supported by a VAT purchase invoice, purchased no earlier than 12 tax periods ago.
Orientation. The December task is not to reduce inventory. It is to ensure that every purchase has a VAT invoice, is within twelve months, and that the inventory is closed accurately on the date of recording.
A threshold matters. If this VAT generates a deductible surplus for three consecutive months, it is not refunded (Article 76, paragraph 4). It is carried forward and deducted from subsequent sales.
Prices and contracts that carry over into the next year
If you become VAT-registered from January, any fixed-price contract that runs beyond the year will hit your margin, because VAT is added on top of a price you can't change.
The review is quick. Pull the active contracts with terms after January 1, 2027, and see if they contain tax clauses—that is, if the price is stated exclusive of VAT and VAT is added when the liability arises. If they don't, talk to the client now, not in February.
The next decision is whether to add VAT to the price or to the margin. If you sell to registered businesses, the buyer deducts it and the actual price for them doesn't change. If you sell to the end consumer, it remains a cost and the choice is yours.
Salaries. What's at stake and why it still hasn't been decided.
The proposal expands the 13% rate bracket to cover gross monthly salaries up to 300,000 lek, up from 200,000 lek today, and adds a new 30% bracket for amounts above 700,000 lek.
The effect is mixed. Employees earning up to about 843,000 lek per month will pay less tax under the proposal. Above that amount, tax will be higher due to the new bracket.
Orientation. There is no decision to be made in December. The January payroll will be calculated under the rule in effect at that time, and it is set by the Assembly. If you have a salary above 700,000 lekë per month, it's only worth knowing the figure in advance for the year's budget.
The legal deadlines that already exist for December 31.
In addition to the above decisions, December 31, 2026 also carries four deadlines of its own that are unrelated to the fiscal package. Payment of outstanding obligations under the amnesty scheme, revaluation of real estate at a 51% tax rate, acquisition of a POS terminal, and the fourth installment of the advance payment of corporate income tax.
These are obligations, not choices, and each has its own conditions.
Read also: The deadlines of December 31, 2026, the fourth in a row
Order. Which decision should you start with?
Not all of them require a decision. Only three are decisions; the others are preparations.
| Line | What | Decision or preparation |
|---|---|---|
| 1 | The dividend, if the distribution has already been decided. | Decision by December |
| 2 | Stock inventory and its VAT invoices | Decision by December |
| 3 | Fixed-price contracts that exceed one year | Decision by December |
| 4 | 12-month turnover and cumulative table | Preparation |
| 5 | January prices | Preparation |
| 6 | Salaries and brackets | Wait, the Assembly decides. |
If you only have time for one, start with accounts payable, because it's the only one where deferral carries measurable costs. If your turnover is between 5 and 10 million lek, start with inventory, because that period ends with the year and doesn't roll over.
Every time there is a tax or financial change that affects your business, we notify you directly by email with a practical explanation.
Send me free notificationsFrequently asked questions
Which tax rate for 2027 has been set with certainty?
Only the VAT threshold. It was lowered to 5,000,000 lekë by Government Decree No. 822, dated October 28, 2026, published in the Official Gazette No. 233, effective January 1, 2027. All other items await the vote of the Assembly.
Do I need to distribute the dividend before the end of the year?
Only if you have already decided on the distribution. In that case, complete the entire transaction by 2026, including the decision, payment, and tax payment. If the distribution wasn't planned, the proposal is not in itself a reason to carry it out.
Do I lose the VAT on the goods I bought in 2026?
No, if you meet the three conditions of Article 76 of the Directive: a VAT invoice, purchases within 12 tax periods, and an inventory list submitted to the tax authority at the time of registration.
Is the capital gains tax increasing to 17.1%?
No. That increase was in the first draft and was withdrawn on October 28, 2026. The capital gains tax remains at 15%.
Has the VAT for 21% been set?
No. The standard norm remains 20%, because it is set out in Article 48 of Law No. 92/2014 and can only be changed by law. The proposal for 21% is pending before Parliament.
Does anything change for hotels and guesthouses from now on?
The accommodation rate remains 61 TP 3 T, pursuant to Article 49(3) of the law. Only the threshold changes, meaning that a small business with turnover between 5 and 10 million lek will become VAT-registered as of January 1, 2027.
When will the final figures be known?
Once the draft laws are voted on and published in the Official Gazette. Until then, any proposed figure may be changed in committee, as happened with the tax benefit on October 28.
Legal basis
- Decision of the Council of Ministers No. 822, dated October 28, 2026, Official Gazette No. 233, dated October 29, 2026, page 24117.
- Law No. 92/2014 “On Value Added Tax,” as amended, Articles 48, 49, 83, 117, 119, 120, 121 and 122.
- Ministry of Finance Instruction No. 6, dated January 30, 2015, updated text, Articles 5, 73, 74, 75 and 76.
- Law No. 29/2023 “On Income Tax,” Article 24(3) and Article 56(2).
- Relation of the Ministry of Finance on the draft bill, dated October 26, 2026.
