With the creation of an enterprise, the obligation arises to complete declarations according to the tax responsibilities for which the taxpayer is registered (corporate income tax, VAT, social and health insurance, personal income tax from employment, as well as other taxes/fees depending on the business's object of activity). Declarations are prepared according to the forms approved by instruction of the Minister of Finance.
The Taxable Income Declaration is completed and submitted on an annual basis. Every taxpayer prepares the annual taxable income declaration and submits it to the tax administration within March 31st of the following year, simultaneously presenting the Company's Financial Statements, as well as any other data specified in the instruction of the Minister of Finance in implementation of Law 29/2023 "On Income Tax," as amended. Nr. 8438, datë 28.12.1998 “Për tatimin mbi të ardhurat” i ndryshuar.
This information is subject to self-declaration, which must be completed and paid by the taxpayer into the tax authorities' account at the time of submitting the annual taxable income declaration. Every taxpayer self-declares the amount of the tax liability or contribution, without waiting for an assessment, notice, or request from the tax administration, and pays the tax to the tax authorities' account.
The information included in the annual taxable income declaration contains data for the purpose of calculating taxable income (financial statements).
The Balance Sheet is one of the financial statements that shows the financial position (assets, liabilities, and equity) of a reporting entity on a specific date.
The Income and Expense Statement is another financial statement that shows the economic performance (income, expenses, and profit/loss) of a reporting entity during an accounting period.
The Statement of Changes in Net Equity shows the changes in the equity of a reporting entity during an accounting period, etc. (in accordance with the law “On accounting and financial statements”).
The request for information is broad and contains every possible and necessary piece of information to make a tax assessment of the taxpayer as well as their related parties, which will serve in calculating the taxable income for tax purposes.
Due to the very important role that the reported information has for the taxpayer, which also brings effects for third parties, it is important that all annual information is reported accurately and on time.
The Tax Administration, through taxpayer declarations and all other legal mechanisms, receives important information from third parties, from employers, as well as from all other related parties that fulfill the legal reporting obligation. During its work, the tax administration analyzes this information received from taxpayers and from related parties, concluding with a tax assessment.
The taxpayer makes available to the tax administration the books, records, information, and documents necessary to perform the accurate calculation of their tax liabilities.
Upon the request of the tax administration, the taxpayer provides additional explanations, orally or in writing. This obligation includes, but is not limited to:
The tax administration's request for additional explanations is made only for information related to the taxpayer's commercial transactions, technical processes or procedures, and financial operations between the taxpayer and third parties.
The withholding tax agent must provide the tax administration with accurate information regarding taxpayer declarations on the date they are required to inform.
Upon the request of the tax administration, third parties shall provide information, in writing or orally, make available books and records, as well as other information regarding the tax liability of a taxpayer with whom they have entered into commercial or financial transactions. This obligation includes, but is not limited to:
At the request of the tax administration, for the purpose of implementing international agreements on tax matters or for the purpose of international agreements providing administrative assistance in tax matters, which are in force in the Republic of Albania, every person must provide information in accordance with the provisions of international agreements in the tax field, including, but not limited to, information held by banks and other financial institutions.
The tax administration may require taxpayers to use specific forms for the submission of documentation, information, or requests.
When a form is not required, any communication required under tax legislation is sent electronically or delivered in writing, except where provided otherwise.
In case of failure to provide information, penalties shall apply according to Article 126 of Law No. 9920, dated 19.5.2008 , "On Tax Procedures in the Republic of Albania," as amended.
Source: General Directorate of Taxes.