Fiscal Peace Agreement 2026: Practical Guide and Application Deadline

Fiscal Peace Agreement It has entered the phase of concrete implementation. With Directive No. 11840 dated May 15, 2026, the General Directorate of Taxes has set the deadline and procedure that businesses must follow to apply during the law's first year.

Applications must be submitted electronically only through the e-Filing system from May 15 to June 5, 2026. No applications will be accepted after this deadline. For businesses that meet the legal requirements, this is the only window for 2026.

This guide explains what the Fiscal Peace Agreement is, who qualifies, the specific application steps, the full timeline of deadlines, and what to consider before entering into the agreement.

Read Instruction No. 11840/2026 on the Taxes website.

What is the Fiscal Peace Agreement?

The Fiscal Peace Agreement is a voluntary agreement between the taxpayer and the tax administration. Both parties agree in advance on the business's taxable profit and on the tax to be paid on it. Thus, the business and the Tax Authority determine at the beginning of the year what the tax base will be.

The agreement has an initial one-year term, with the option to renew for two additional years. The maximum duration is three years, after which the scheme will be reviewed because the current law remains in effect until 2028.

The tax logic is simple. The administration takes last year's taxable profit and increases it by 181 TP3T. This becomes the agreed base for the agreement year. On that basis, you pay the standard 151 TP3T tax on the profit.

If at the end of the year the actual profit exceeds the agreed-upon base, the excess is taxed at a reduced rate of 51%, not 15%. This is the reward for transparency. If the profit is lower, you still pay tax based on the agreed-upon base, with no reduction.

The second advantage is the absence of inspections. During the agreement period, no on-site tax inspections are carried out for profit tax, except in cases of serious fraud. The administration can only conduct desk monitoring, without inspectors in the business.

Who qualifies for the Fiscal Peace?

Law 84/2025 Limits entry into the agreement to businesses that simultaneously meet four legal conditions.

Annual income over 1,400,000 lek

The scheme applies only to medium and large businesses, those with annual gross revenues above 14,000,000 lek. Small businesses, with turnover below this threshold, already pay a 0% corporate tax rate through 2029 and do not need the agreement.

Read also Zero tax for small businesses until 2029.

Do not have any unpaid tax obligations.

The business must be up to date with payments and filings. No outstanding obligations, no unfiled returns. The administration seeks businesses that have historically been compliant.

Not being under appeal or tax investigation

If you have a pending administrative appeal or are under special audit, you cannot enter into an agreement. Your tax situation must be clear, with no open issues. Likewise, criminal investigations for fraud, evasion, or money laundering immediately disqualify you.

Not to be subject to a special regime

The law excludes businesses that benefit from reduced tax rates or from special legal exemptions. It also excludes entities carrying out concession projects, because they are treated separately under fiscal legislation.

How tax calculation works in practice

Let's look at it with a concrete example. A business has declared a profit of 2,000,000 lekë in 2025.

The base of the agreement for 2026 is 2,000,000 + 18%, i.e., 2,360,000 lek. On this base, 15% tax is payable, which amounts to 354,000 lek. This is the minimum tax on the agreement.

If the actual profit for the year 2026 amounts to 3,000,000 lek, then the amount above the base—namely 640,000 lek—is taxed at 51%. The total tax is 354,000 + 32,000, i.e., 386,000 lek.

Without the agreement, the same profit of 3,000,000 lek would be taxed at 15% on the first 1,000,000 lek, meaning 150,000 lek. The savings in this example are 64,000 lek.

The logic is clear. The more the business exceeds the base, the more it saves, because the additional tax is 51% instead of 15%.

Redeployment of financial statements from previous years

The agreement offers an additional opportunity that is rarely found in Albanian tax legislation. You can reclassify certain items on the financial statements for the years 2023, 2024, and 2025, correcting cash balances, inventory, assets, or doubtful accounts.

The correction is taxed at a rate of 51 TP3T, not 151 TP3T. This is the practical window for businesses with historical discrepancies on their statements, such as invalid inventory still shown as an asset or old loans that need to be written off.

You can also declare as active assets that were not on the balance sheet, up to 30% of their value. You only need to pay 5% on the difference and you won't be penalized for the adjustments.

But be careful, this mechanism is not intended to artificially reduce future profits and does not affect other obligations such as VAT. The goal is transparency, not shifting obligations.

Deadlines and application procedure for 2026

Instruction No. 11840 The document dated May 15, 2026 is the one that sets forth the operating procedure. Whereas the Law 84/2025 and Instruction No. 10 of May 14, 2026 establishes the framework and forms, Instruction 11840 sets the first implementation deadline and the application procedure in e-Filing.

Application deadline: May 15 to June 5, 2026

Applications are accepted only during the period from May 15 to June 5, 2026. Any application submitted after June 5 will be automatically rejected. No extension of the deadline is provided, and there is no alternative procedure outside the e-Filing system.

For future tax years, the application deadline will be tied to the date of filing the annual income tax return, namely March 31 of each year. However, for the first year, only the deadline specified in this guidance applies.

How to apply on e-Filing

The application is entirely electronic and no physical documents are submitted. Log in to the e-Filing system with your NIPT and credentials. Click the "My Cases" tab and select "General Inquiry." Create a new case with the exact title "Application for the Fiscal Peace Agreement.".

Attach the completed application form to this matter. The form is Annex No. 1 of Instruction No. 10, dated May 14, 2026 and is published on the official website of the General Directorate of Taxes.

The application is officially considered submitted only after the system confirms the registration and provides you with a unique case number. This number is your reference for any further communication with the tax administration.

What happens after delivery?

The tax administration preliminarily verifies the declared data. If any deficiencies or inaccuracies are found, you will be notified electronically via e-Filing and have three business days to complete the documentation. Failure to do so will result in the application being rejected.

The final decision is made within 5 calendar days, but no later than June 10, 2026, and is communicated to you via e-Filing.

If the conditions are met, the Regional Tax Directorate drafts the Fiscal Peace Agreement document, signed by the director of the office where the business is registered. You must sign it as legal representative or administrator and resubmit it via e-Filing by June 15, 2026. Only after this step is the agreement considered formalized.

The complete schedule of deadlines for 2026

Action	Deadline
Application in e-Filing	May 15 to June 5, 2026
Provide documentation if required.	3 business days from notification
Communication of the decision by the administration	No later than June 10, 2026
Signing of the agreement by the representative	No later than June 15, 2026
Tax payment and submission of amended returns	No later than June 30, 2026

Re-declaration of assets by June 30.

If you declared on the application form that you will file revised statements for 2023, 2024, or 2025, you must complete four actions by June 30, 2026.

First, make the tax payment for each tax year for which you have amended your return.

Secondly, electronically submit via e-Filing the application form for the re-declaration of special elements. This is Annex No. 2 of Instruction No. 10, dated May 14, 2026.

Third, submit the re-declared financial statements in PDF and Excel formats, signed by the legal representative.

Fourth, the matter in e-Filing must be precisely titled "Amendment of Financial Statements pursuant to Law No.". 84/2025 for the fiscal peace agreement, for the years 2023, 2024, 2025.

For every change made, explanations supported by… are required. legislation on accounting. The administration may request additional information regarding the reflected changes.

What do you risk if you miss the deadline?

Missing the June 5 deadline has concrete consequences. Applications submitted after that date will be rejected without any possibility of review. If you are a suitable candidate, you will lose the opportunity for the agreement for the entire 2026 tax year.

This means that you continue under the standard self-declaration regime. The tax on the portion of profit exceeding 14,000,000 lek remains at 15%, without the possibility of the reduced 5% rate offered by the agreement on additional profit above the threshold of 18%.

Equally significant is the loss of the opportunity to re-declare the 2023, 2024, and 2025 returns at the reduced rate of 51 TP3T. Future corrections outside this mechanism may result in a 151 TP3T tax plus fines and interest charges.

When it's worth entering into an agreement

The agreement is not mandatory and is not universally advantageous. The decision depends on the specific business situation.

When the scheme is favorable

A business with stable or moderately growing profits. If profits have historically risen by 10% to 15% per year, the agreement's 18% requirement remains achievable. The scheme provides certainty, avoids audits, and allows for financial planning.

Business with books that need fixing. If your balance sheet contains items not properly reflected—for example, cash that doesn't match the books, invalid inventory, old loans—the agreement offers a legal way to correct them with a 51% tax. Without the agreement, correcting an issue during an audit could result in 15% tax plus penalties.

Business wants predictability. Some entrepreneurs prefer to pay a little more to have peace of mind and avoid the fear of inspections. The agreement functions like an insurance policy against inspections.

Business with investment plans or a loan request. The agreement guarantees a minimum reported profit and cleans up old anomalies. This makes the company appear financially healthier in the eyes of banks and investors.

When you should be careful

Business forecasting a decline in profit. This is the greatest risk. If this year's profit is expected to be lower than last year's, the agreement requires you to pay tax as if the profit were 18% higher. In a difficult year, this burdens the financial situation rather than easing it.

High-growth business. The law sets the threshold at 50%. If profit exceeds 50% above last year's, the agreement automatically terminates and the business moves into the normal regime with possible oversight. Businesses expecting a doubling of profit must factor this scenario into their calculations.

A business that doesn't actually meet the criteria. If you have doubts about old undeclared obligations or historical issues that might surface, don't enter into an agreement hoping to conceal them. The agreement is not amnesty and it forgives nothing.

How to decide whether you should apply

The decision to enter into the agreement is financial, not ideological. Before you apply, check six concrete things.

Analyze your financial situation and projections.

Look at the profits over the past three years. Have they been increasing, decreasing, or unstable? Average the annual growth and compare it to the 18% required by the agreement. If your average is 10% to 15%, the agreement is achievable. If it's below 5% or unstable, think twice.

Then carefully forecast the year 2026. Are there new contracts, lost clients, ongoing investments? Create two scenarios, optimistic and pessimistic, and calculate the tax in each case.

Check your business's tax health.

Before applying, make sure you meet all four legal requirements. No outstanding obligations, no unfiled returns, no open complaint or investigation, no special benefit regime. Obtain a certificate of tax compliance from the e-Filing system before applying.

Calculate the opportunity cost

Make two parallel calculations. First, the tax you would pay under the agreement for the pessimistic, optimistic, and realistic scenarios. Second, the tax you would pay without the agreement for the same three scenarios. The difference is the cost or benefit of the decision.

Don't forget to include in your calculations the value of lacking controls and the possibility of re-declaration with 5%. These are values that are rarely calculated but influence the decision.

Consider the need to adjust the balance sheet.

If you have items in the balance sheet that need to be corrected, e.g. phantom inventory, cash discrepancies, uncollectible accounts receivable, calculate the correction costs at 51 TP3T versus 151 TP3T plus fines in the event of an audit. Often this is the strongest reason to enter into an agreement.

Don't leave things until the last minute.

The deadline is June 5. But if your application is incomplete, you have only three business days to complete it. Applying in the final days of the deadline leaves little room for error. Ideally, you should apply by May 28 so that you have time for any necessary corrections.

Consult an economist before making a decision.

The financial calculations described above are only meaningful when based on your business's actual figures. A preliminary consultation with an economist could change your decision by 10% of profit, either way.

Why Fiscal Peace Is Not a Fiscal Amnesty

The terms fiscal peace and fiscal amnesty are often confused, but they are different instruments.

Fiscal amnesty forgives or reduces unpaid tax liabilities from the past. The state accepts a nominal payment in exchange for wiping out the debt, or allows the legalization of undeclared assets with immunity. Amnesty closes the books on the past.

The Fiscal Peace Agreement, by contrast, forgives nothing. It is an agreement to tax the future. The taxpayer commits to pay more than the minimum they would otherwise owe, plus 181 TP3T, in exchange for the absence of audits and security.

The agreement does not grant any criminal immunity for illicit acts such as money laundering or terrorist financing. On the contrary, the administration is obligated to inform the authorities if it encounters any such indications during the process.

Read And the 2026 Fiscal Amnesty: which obligations are forgiven.

Early termination of the agreement

The agreement may be terminated before the end of the tax year in certain cases provided for by law.

If the actual profit falls below the agreement's threshold—that is, if the 18% increase is not achieved—the agreement is considered breached. The logic is that the law's purpose was to guarantee an 18% increase, and if that is not realized, there is no point in continuing the peace.

The agreement also terminates if the business changes its primary activity, suspends or ceases operations, delays payment of its obligations, or if previously undisclosed liabilities arise.

A special case is the increase in profit above 50%. Although this may seem positive for the business, the law provides for the termination of the agreement once this threshold is reached. The reason is that such a large increase raises suspicions of previously hidden income, or the state simply reserves the right to reassess.

When the agreement is breached, protection from audits lapses. The administration has the right to conduct a regular audit and reassess the obligation, especially for the elements re-declared under the agreement.

Frequently Asked Questions about the Application

Can I apply if I have unpaid tax obligations?

No. One of the legal requirements for entering into the agreement is the absence of unpaid tax obligations and unfiled returns. If you have debts, they must be settled before applying. They can be combined with the tax amnesty for historical obligations, which is a separate process under Law 86/2025.

What happens if my application is rejected?

If the application is rejected for lack of documents and is not completed within 3 business days, or if you do not meet the legal requirements, the business remains under the standard tax regime. The refusal decision is communicated to you electronically via e-Filing and remains invalid for the 2026 tax year.

Can I re-declare the mirrors without entering into an agreement?

No. Redesignation at the 5% rate is directly linked to the Fiscal Peace Agreement. Without the agreement, the correction of prior-year statements is assessed under the ordinary tax regime and may result in a 15% tax plus penalties.

Where can I find the application and re-declaration forms?

Appendices 1 and 2 are part of Instruction No. 10, dated May 14, 2026 and are published on the official website of the General Directorate of Taxes, www.tatime.gov.al.

How is the agreed-upon profit calculated?

The administration takes your taxable profit from last year and increases it by 18%. On that basis, you pay tax at 15%. Any additional profit above the threshold is taxed at 51%. If you earn less than the agreed base, you still pay tax on the minimum profit under the agreement.

Can I apply if I'm in the process of a tax appeal?

No. One of the qualifying conditions is the absence of any ongoing tax appeal or investigation processes. The process must be closed before applying. If you are in this situation, consult an economist in advance to assess the possibility of a swift resolution of the appeal.

Can the agreement be renewed year after year?

Yes. The agreement has an initial one-year term, with the option to renew for two additional years. Each year you confirm your willingness; the tax authorities propose the new base by taking last year's profit and increasing it by 181 TP3T, you accept and continue. After three years the scheme closes unless extended by a new law.