Any individual residing in the Republic of Albania who receives income sourced in and outside the Republic of Albania, in an amount exceeding 2,000,000 (two million) lek per year, in support of Law No. 8438 of December 28, 1998 “On Income Tax,” as amended, is required to file the Annual Individual Income Statement.
The Annual Individual Income Statement must also be filed by non-resident individuals who earn taxable income sourced in the Republic of Albania in excess of 2,000,000 (two million) lek.
The obligation to file the DIVA also applies to individuals, whether resident or non-resident, who have been employed by more than one employer, regardless of whether their total income during this calendar year is below 2,000,000 (two million) lek.
This provision applies to individuals who have received employment income from more than one employer beginning January 1, 2020.
Individuals are required to declare taxable income as follows:
- Gross income from wages or bonuses from employment relationships
- Gross dividend income
- Gross rental income
- Capital gain from the sale of real estate owned by the declarant.
- Gross income from bank interest
- Capital gain generated from investments in securities or from real estate.
- Gross amount won from the lottery or other games of chance.
- Gross revenues from intellectual property, licenses, exclusive rights, and other intangible assets that consist solely of rights and have no physical form.
- Capital gain from the donation.
- Gross income earned outside the territory of the Republic of Albania.
- Other gross income not mentioned above
The DIVA statement is automatically generated and pre-filled with data on individuals' gross annual income from wages or employment-related bonuses, as well as with the calculation of employment income tax.
Also, the prepayment field will include the amount paid during the year for income tax on employment.
Although these fields are generated pre-filled, they will remain free and editable fields so that the declarant can verify and modify them.
Inaccurate completion of the Annual Individual Income Declaration may result in penalties for the individual filer. In the event that the amount of income received during the month from two or more salaries from different employers exceeds the threshold taxed at zero percent (30,000 lekë), tax will be calculated on the total monthly income from salaries (the total of salary income from all employers).
Based on the total amount of wages received from all employers, the individual calculates as follows:
For monthly wages up to 30,000 lek, the tax is zero percent.
For monthly salaries from 30,001 lek to 150,000 lek, the tax is 13 percent of the amount above 30,000 lek.
For monthly salaries of 150,001 lekë and above, the tax is 13,000 lekë plus 23 percent of the amount over 150,000 lekë.
The difference between the calculated tax, shown in box 4 of the return, The difference between the calculated tax, shown in box 4 of the return, and the amount of tax paid, withheld by employers, shown in box 22 of the return, represents the amount the individual must pay to the tax administration on account of his annual income from employment.
The amount of tax calculated, shown in box 4 of the return, may in no case be less than the tax withheld at source and paid by the employer on income from salaries and bonuses in respect of current employment during the year, as shown in box 22 of the return.
In the case of individuals who have not been dual-employed in any month of the year, the amount of tax calculated, entered in box 4 of the return, is always equal to the tax withheld at source and paid by the employer for wages and bonuses in respect of current employment relationships during the year, entered in box 22 of the return.
Note: Payroll and employment-related benefits tax must be calculated only on wages and benefits received by an individual under a regular employment relationship and based on the amounts reported by the employer on the respective payroll statements. Any other income, received for participation in various Commissions, Committees, directing boards, supervisory councils, etc., for which the service recipient has previously withheld 15% tax at source and which have not been declared as salary by the declarant, should not be counted as salary received by the declarant. The total of salaries and bonuses declared by the reporting individual must match the total of salaries and bonuses declared for them by employers according to the respective payroll statements administered by the tax authority.
For more information, you can click on the official website of the Tax Administration., www.tatime.gov.al, You can go to the taxpayer service offices or to the regional tax directors, and you can also call the toll-free number 0800 00 02 at the Call Center.
The declaration of income, besides being a legal obligation for every individual subject to filing, also serves as an additional guarantee regarding the justification of his wealth.
The annual individual income tax return must be filed through the e-filing system no later than April 30 of the year following the period for which the return is filed.
Source: General Directorate of Taxes.