This article applies to entities that:
a) hold rights for the exploitation of mineral resources, rights to exploit hydrocarbon resources or other rights to exploit terrestrial and aquatic natural resources, including the sea in the Republic of Albania, as well as information pertaining to these rights, which for the purposes of this law are treated as real estate;
b) engage in activities in the field of telecommunications;
c) carry out activities as financial institutions.
If during a tax period the direct and/or indirect ownership of the share capital, quotas, or voting rights of an entity specified in point 1 of this article changes by more than 20% in value or number of shares or quotas, the entity is treated as if it were selling a proportionate share of all its assets immediately before the change.
The entity is treated as:
a) the recipient of the proceeds from the sale, which is equal to the proportional share of the asset's market value at that time; and
b) reseller of the asset for the same value.
This provision applies in cases where the entity has achieved an average turnover of 500,000,000 (five hundred million) lek for the preceding three years.
When an entity is subject to corporate income tax under this law, based on paragraph 2 of this article, any change in ownership of shares or similar interests that gave rise to the change is exempt from income tax.
An entity that is subject to a change specified in paragraph 2 of this article shall notify the tax authorities of the details of the change within 45 days from the time the change occurred.
The entity notifies the tax administration of a direct or indirect change in ownership of 10% or more of its capital or voting rights. The change in ownership must be subject to subparagraph (ii) of paragraph (e) of Article 4 of this law. The notification must be made within 45 days of the change of ownership. This provision does not apply in cases where paragraph 4 of this article applies.
In the event of failure to notify the tax authorities, the entity is subject to the penalties set forth in the applicable law on tax procedures in the Republic of Albania.
The provisions of this article apply in all cases, except when a change in the ownership of the share capital, quotas, or voting rights of an entity is subject to the provisions of ratified double taxation avoidance treaties in force.
Source: General Directorate of Taxes.
