Individual income tax return

Obligation to declare

All individuals residing in the Republic of Albania who earn annual gross income from sources both within and outside the territory of the Republic of Albania exceeding the amount of 2,000.000 lekë, are required to complete and file the annual individual income tax return by April 30 of the year following the calendar year under review. All non-resident individuals in the Republic of Albania who earn annual gross income from sources within the territory of the Republic of Albania exceeding the amount of 2,000,000 lekë are required to complete and submit the annual individual income tax return by April 30 of the year following the calendar year.000 lekë, must complete and submit the individual annual income tax return by April 30 of the year following the calendar year closed.

This rule does not apply to individuals who are employed by more than one employer. These individuals declare on their annual income statement, as a single amount, all income earned from employment, They calculate the total tax liability on wages, deduct, where applicable, the tax withheld by the employer, and determine the amount of tax liability they must pay to the state budget.

Deadline and method of declaration

The annual individual income statement must be submitted by the due date. April 30 of the year following the calendar year-end. Declaration for:

• The form D1 – Annual Individual Income Declaration;
• The form D2 – Annual Individual Income Statement for Foreign Individuals

It is done electronically. Any individual resident of Albania who is required to file a declaration but is not registered on e-Filing must register by following the steps below:

• Go to the official DPT website at: www.tatime.gov.al
• Click on the e-Services menu, then select the ”“ submenu on the right.“For Individuals”
• Click on the “ link“Click here”, in the second paragraph
• The data table to be completed for the individual will appear on the screen.

Non-resident individuals must go to the nearest tax office to register.

Payment of the personal income tax liability

If from the filing of the annual declaration it results that the individual must pay tax, based on the “Total Due” section of the individual annual income statement, the individual submits to the bank the “Individual Income Tax Payment Order” form, which is generated by the IT system, and makes the tax payment no later than the date April 30 of the year following the year for which the declaration is made.

Correction of the previously submitted statement

The declarant may correct his initial return up to two times within three months from the date of filing the first return that contained errors, without penalties. In the event of any further correction after the second one within the three-month period from the filing of the initial return, legal sanctions apply to the taxpayer. The individual submits the corrected return from his account on e-filing at the official online tax portal www.tatime.gov.al.

Justifying documentation of income and expenses

Every income received and expense incurred, declared in the individual annual income statement, must be substantiated by the corresponding legal supporting document. The individual taxpayer, in the event of a request from the Tax Administration, is obligated to submit the relevant supporting documentation. Source: General Directorate of Taxes.

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