How to report annual information?
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.

Deklarata e të ardhurave të tatueshme plotësohet dhe dorëzohet në baza vjetore. Çdo tatimpagues përgatit deklaratën vjetore të të ardhurave të tatueshme dhe e paraqet atë pranë administratës tatimore brenda datës 31 Mars të vitit pasardhës, duke paraqitur në të njëjtën kohë Pasqyrat Financiare të Shoqërisë, si dhe çdo të dhënë tjetër të përcaktuar në udhëzimin e Ministrit të Financave në zbatim të Ligjit 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.

Importance of Reporting Accuracy
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.

What information must be reported?

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:

• Completing, signing, and returning questionnaires or other written requests for information or documents from the tax administration, within 20 days from the date of posting the request or its electronic delivery to the taxpayer;
• Meeting with tax administration employees during working hours to answer questions and provide information, according to Article 94 of this law.

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.

Obligation of Third Parties to Provide Information

• 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:

• Completing, signing, and returning written questionnaires or other written requests for information or documents from the tax administration, within 30 calendar days from the date when the request, sent by mail or electronically, was received or is considered to have been received by the third party;
• Meeting with tax administration employees during official working hours at the third party's premises of economic activity or at the tax administration's offices, to answer questions and provide information, based on a written summons.

Information Regarding the Implementation of International Agreements

• 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.

Persons to Whom the Request for Information is Addressed

• The written request for information is addressed to:
  Legal entities, regarding:
  • Dividends paid to shareholders or partners;
  • Persons with whom they are conducting or have conducted financial or commercial transactions;
  • Payments made to subcontractors or in the position of a subcontractor;
  • Debtors and creditors;

• Banks and financial institutions, regarding:
  • Interest payments;
  • Deposits and liabilities at the end of the year;
  • Other banking operations;
  • The electronic register of bank accounts in the name of taxpayers, including the trade name and personal identification number;

• Brokerage firms or collective investment funds, for securities transactions;
• Real estate agents, for transactions regarding clients;
• Buyers or sellers of real estate, for the description and price of the real estate;
• Notaries, for notarial acts, for the sale and purchase of movable or immovable property, or construction contracts;
• Resident and non-resident legal entities, for payments made to non-resident persons;
•  State institutions and state administration employees;
• Other contractors of the taxpayer;
• Donors, international organizations, and non-profit organizations, domestic and foreign, for payments made to taxpayers for the supply of goods and services.

Sqarim:
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.

Kujdes:
Në rast mosdhënieje të informacionit, aplikohen penalitete, sipas nenit 126 të ligjit nr.9920 datë 19.5.2008 “Për proçedurat tatimore në Republikën e Shqipërisë”, i ndryshuar.

Tax is a mandatory and non-refundable payment to the State Budget or to the budget of local government bodies, established by law and which is not made in exchange for specific goods and services.

A fee (tax) is a mandatory and non-refundable payment to the State Budget or to the budget of local government bodies, established by law and paid by any person who exercises a public right or benefits from a public service within the territory of the Republic of Albania.

1. Tatimet dhe taksat janë kombëtare ose vendore.

National taxes and fees include:

• Value Added Tax (VAT)
• tatimi mbi të ardhurat;
• Tax on games of chance, casinos, and hippodromes;
• National taxes and fees;
• Other taxes, which are defined as such by special law.

2. Tatimet dhe taksat vendore përcaktohen në ligjin për sistemin e taksave vendore.

3. Kontributet e sigurimeve shoqërore dhe shëndetësore përcaktohen në ligjin për sigurimet shoqërore dhe shëndetësore.

Aftësia paguese në rastin e sipërmarrjeve mund të kufizohet për një sërë arsyesh, duke përfshirë probleme të përkohshme tregtare si dhe ndryshimet në sektorin ekonomik apo më gjerë. Administrata Tatimore do të shqyrtojë rastet e tatimpaguesve veç e veç, duke analizuar dhe përfshirë çdo faktor ndikues në historikun e tatimpaguesit, si dhe më në detaj për çdo lloj tatimi të papaguar. Kur një rrethanë financiare pengon tatimpaguesin për të paguar në afat detyrimet tatimore, ai mund të lejohet të lidhë në çdo kohë marrëveshje pagesë me këste. Në të njëjtën kohë tatimpaguesi duhet të vërtetojë që është në kushtet e pamundësisë financiare për të paguar të plotë detyrimin tatimor si dhe të tregojë që pavarësisht nga rrethanat financiare, ai është në gjendje të përmbushë marrëveshjen. Administrata tatimore nuk mund të lidhë një marrëveshje të pagesës me këste nëse ka filluar procedura e shitjes në ankand të pasurive të konfiskuara për efekt të atij detyrimi tatimor të pashlyer. Kërkesa bëhet me shkrim dhe i drejtohet drejtorit të drejtorisë rajonale apo drejtuesit të njësisë së ngjashme me të në drejtorinë rajonale ku është i regjistruar tatimpaguesi.

Kërkesa duhet të bëhet brenda 15 ditëve nga data kur njoftimi i vlerësimit konsiderohet të jetë marrë. Marrëveshja e pagesës me këste bëhet me shkrim, brenda 10 ditëve kalendarike nga data e paraqitjes së kërkesës dhe nënshkruhet nga tatimpaguesi dhe drejtori i drejtorisë rajonale apo drejtuesi i njësisë së ngjashme me të. Për të nënshkruar një marrëveshje të pagesës me këste tatimpaguesi detyrohet të paguajë menjëherë të paktën 20% të vlerës së detyrimit për të cilin lidhet marrëveshja.”.

The installment payment agreement is concluded for a period starting from the date of signing until the end of the next calendar year following the moment the agreement is drafted. Upon signing an installment payment agreement for a tax liability, late payment interest (overdue interest) continues to be paid on the tax liability, but late payment penalties are not calculated.

The director of the regional tax directorate, when the taxable person's request is unsubstantiated and unjustified by the circumstances, may refuse the request for an installment payment agreement or may require a bank guarantee before entering into such an agreement.
The guarantee must be provided by one of the banks of which the taxable person requesting the installment payment is a client. In this case, the bank issuing the guarantee becomes the guarantor for the taxable person's liability.

Once the taxable person presents the document of this guarantee, the director of the regional tax directorate may agree to sign the installment payment agreement for the unpaid tax liabilities.

The installment payment agreement may be terminated by the tax administration at the earliest moment the taxable person fails to comply with it regarding the regularity of payments, as well as when they fail to pay other tax liabilities arising during the period covered by the agreement.

In this case, the taxable person is obliged to pay all unpaid tax liabilities covered by this agreement within 30 calendar days from the date of receiving the decision to terminate the agreement. If these liabilities are not paid, the tax administration shall collect the debts in accordance with the legal provisions.

Kur shuma e detyrimit tatimor të paguar është më e madhe se shuma e tatimit të vlerësuar në njoftimin e vlerësimit tatimor apo në deklaratën tatimore, administrata tatimore e kalon shumën e paguar më tepër për llogari të detyrimeve të tjera tatimore, të papaguara nga personi i tatueshëm. Një gjë e tillë, behet në mënyrë automatike nga vetë administrata tatimore, brenda periudhës së parë vijuese tatimore që vjen pas periudhës në të cilën personi i tatueshëm rezulton me kredi tatimore. Për tatimin mbi fitimin një gjë e tillë, bëhet brenda muajit të parë që pason muajin në të cilin personi i tatueshëm rezulton me kredi tatimore.

When the amount of the excess tax credit is greater than the amount of other unpaid tax liabilities of the taxable person, the remaining difference, upon the written request of the taxable person, may be:

• Automatically refunded to the taxable person within 30 calendar days from the date the overpaid amount was deposited or from the date the legal conditions for a refund were met;
• Transferred to the account of the taxpayer's future tax liabilities.

Where can we appeal against tax administration actions that we consider unfair?
Ankimi bëhet vetëm në Drejtorinë e Apelimit Tatimor e cila që nga 1 Janari vitit 2017, është pjesë e strukturës së Ministrisë së Financave dhe Ekonomisë.

Çfarë rregullash ka për të bërë një ankim:

1. You must have a document (sent by the tax administration) that affects the interests of the taxpayer (read below for what this document may be).
2. You must appeal within 1 month of becoming aware of the administrative act sent to you by the tax administration.
3. Within this month, you must pay or provide a bank guarantee for the liabilities contained in the assessment notice, along with the late interest calculated up to the payment date. Fines are neither prepaid nor subject to a bank guarantee.

Kujdes: Pa këto dokumenta, Drejtoria e Apelimit e refuzon ankimin.

Përse mund të ankohemi:

• Any "Tax Liability Assessment Notice" sent to you by the tax administration that you consider unfair.
• Any other administrative act that affects the taxpayer's tax liability, including requests for compensation.
• Any act that affects the taxpayer's request for a tax refund.
• Any act that affects the taxpayer's request for tax relief.
• Errors made by the administration in calculating the late interest percentage may be appealed.
• The imposition of or errors in calculating the amounts and various types of fines.
• An appeal can also be filed against an omission (failure to act) by the tax administration that affects the taxpayer's tax liability.

Kujdes, nuk mund të ankimohen masat administrative që kanë të bëjnë me masat e mbledhjes me forcë të detyrimeve tatimore si urdhër bllokimi i llogarive bankare; njoftim dhe kërkesë për të paguar; njoftimi për palë të treta dhe aktet administrative që lidhen me konfiskimin e mallrave.

Ç’dokumenta duhen dërguar në Drejtorinë e Apelimit për ankimin:

1. A written request describing the taxpayer's claims. This request must include the taxpayer's name and address, the taxpayer registration number (NIPT), and must be signed at the end.
2. The administrative act issued by the tax administration.
3. Proof of payment of the tax liability and late interest (bank-processed payment order). In the absence of payment, a bank guarantee that covers the liabilities plus late interest.
4. Supporting information for the appeal, such as audit reports, minutes (records), acts of findings, etc.
5. Any other document that the appellant considers important for the fair resolution of the case.

How is the appeal submitted?
The appeal can be delivered in person or sent via registered mail. The date the appeal is received by the Tax Appeals Directorate is considered the date of protocol for appeals delivered in person, and the date of dispatch at the post office for appeals sent by mail.

Kujdes! Tatimpaguesi, në dokumentat që dorëzon për ankim, duhet të vërtetojë datën e marrjes së aktit administrativ, objekt ankimi. Si provë, mund të shërbejë kopja e zarfit nëpërmjet të cilit është dërguar ankimi pranë tatimpaguesit, kopja e regjistrimit të dorëzimit të objekteve postare nga zyra postare etj.

Key issues to keep in mind during the appeal process:

1. During the review process, the Appeals Directorate may request additional documents, and the taxpayer is obliged to respond to the request.
2. The burden of proof to verify the contrary of the tax administration’s assessment lies with the taxpayer.
3. If the taxpayer has missed the appeal deadline, they must argue and prove with the necessary documentation that the delay was not their fault.
4. After a reinstatement of the deadline, the appeal must be filed within 15 days, rather than the 1 month allowed before the deadline was missed.
5. If the taxpayer wishes to be heard orally, they may request a hearing in their written appeal.

Where can we read the legal basis for appeals in more detail?

• Law No. 9920, dated May 19, 2008, "On Tax Procedures in the Republic of Albania," from Article 106 to Article 110.
• Udhëzimi i Ministrit të Financave nr. 24 datë 02.09.2008 “Për Procedurat Tatimore në Republikën e Shqipërisë” nga paragrafi 106 deri tek paragrafi 110.