As a support measure against the consequences of Covid-19, small businesses with revenues between 5 and 14 million lek will not pay corporate income tax in 2020 (which is 51%); businesses with revenues up to 5 million lek are legally exempt from corporate income tax.
The Normative Act on amendments to income tax provides that “for taxpayers with turnover up to 14,000,000 (fourteen million) lekë, the installments of the 2020 corporate income tax prepayments shall not be paid.”
For large businesses, an extension is provided until September 2021, but not a waiver. Exceptionally, under the provisions of Article 30 “Advances” under this law, for taxpayers with turnover exceeding 14,000,000 (fourteen million) lek, the installments of corporate income tax for the tax periods of the second and third quarters, April–June and July–September 2020, will not be prepayable. The payments for these installments are postponed to the April-September 2021 period.
Who is excluded?
This exemption does not apply to taxpayers engaged in economic activities in the field of banking, telecommunications, the trade of pharmaceutical products, food and fruit and vegetable products, as well as to the taxpayers listed in paragraph 12 of this article.
Ease for call center and outsourcing
Exceptionally from the provisions of Article 30 “Prepayments” under this law—the profit tax installments for the April–December 2020 tax periods for taxpayers engaged in economic activities in tourism, active processing with customer-supplied materials, and call centers—will not be prepaid. Payment of these installments is postponed to the April–December 2021 period.
Source: Monitor.