- Interest is calculated when the tax liability is not paid by the due date, up to the date of payment.
- Its amount is 120% at the Bank of Albania's interbank interest rate.
- The rate in effect as of April 11, 2026, is 7.81 TP3T per year.
- In addition to the late‐payment interest, failure to pay on time also incurs a 0.061 TP3T penalty on the obligation for each day, up to 365 days.
- Penalties for an obligation do not exceed 100% of the obligation itself, while late fees are calculated separately.
Late fees are not a penalty. They are the cost of time, calculated on the unpaid obligation from the due date until the date of payment. Therefore, they increase every day, whether or not there is any oversight.
The legal basis is Article 76, paragraph 3, of Law No. 9920/2008. The rate is 120% of the Bank of Albania's interbank interest rate.
Read also: Review and Appeal Procedure
Effective rate
| Period | Late payment rate |
|---|---|
| From April 11, 2026 and thereafter | 7.81 TP3T per year |
| July 22, 2025 to April 10, 2026 | 8.11 TP3T per year |
The rate changes when the interbank interest rate changes, so it is verified on the official table of the General Directorate of Taxes before any calculation for past periods.
What is added to the late fee?
| Violation | Mass |
|---|---|
| Late payment | 0.061 TP3T per day, up to a maximum of 365 days, Article 114. |
| Failure to file on time | 10,000 lekë for VAT and corporate income tax payers, 5,000 lekë for others, Article 113 |
| Inaccurate statement | 20% of the difference, Article 115 |
| Fine limit | 100% self-assessment is not allowed, Article 111, paragraph 5. |
Thus, an unpaid obligation simultaneously generates late interest and a penalty. These are two separate items and are calculated separately.
How the cost is reduced
The first route is self-declaration. When the correction is made within 30 days of the audit notification, the penalty is applied at the rate of 50%, pursuant to Article 81.
The second option is an installment agreement: pay 20% immediately and the remainder by the end of the following year; the Section 114 penalty does not apply during the agreement.
Every time there is a tax or financial change that affects your business, we notify you directly by email with a practical explanation.
Send me free notificationsFrequently asked questions
What is the late fee today?
7.81 TP3T per year, a rate effective as of April 11, 2026.
Does the late fee stop after a year?
The 365-day limit applies to the late payment fee of 0.061 TP3T per day. Late interest is calculated separately until paid.
Can the fine be reduced?
Yes, to the extent of 50% when the correction is made within 30 days of the audit notification.
In practice, a small unpaid obligation grows large not because of the amount but because of time. A quick status check on e-Filing every quarter takes care of it.
Previous text and the table of norms by periods
On this page, in compliance with the Law No. 9920, dated May 19, 2008, “On Tax Procedures in the Republic of Albania”, as amended, Article 76(3), the interest rate applicable to the calculation of late interest (when the obligation is not paid by the due date until the date of tax payment) is published.
The amount of late‐payment interest, according to the aforementioned law, is 120 percent of the Bank of's interbank interest rate. Sof Albania, which is determined each quarter based on the average rate of the previous quarter.
Approved rates by period
- The interest rate from October 18, 2016 to January 17, 2017 is 6.3.
- Interest rate as of January 18, 2017 – and thereafter is 6.3
- Interest rate as of April 7, 2017 – and thereafter is 6.31 TP3T.
- Interest rate as of July 7, 2017 – and thereafter is 6.31 TP3T.
- Interest rate as of October 5, 2017 – and thereafter is 6.31 TP3T.
- Interest rate as of January 25, 2018 – and thereafter is 6.31 TP3T.
- Interest rate as of April 19, 2018 – and thereafter is 6.31 TP3T.
- Interest rate as of July 13, 2018 – and thereafter is 6.2161 TP3T
- Interest rate as of October 26, 2018 – and thereafter is 6%.
- Interest rate as of January 17, 2019 – and thereafter is 6%.
- Interest rate as of April 20, 2019 – and thereafter is 6%
- Interest rate as of May 7, 2019 – and thereafter is 6%.
- Interest rate as of August 16, 2019 – and thereafter is 6%.
- Interest rate as of October 29, 2019 – and thereafter is 6%.
- Interest rate as of February 11, 2020 – and thereafter is 6%.
- Interest rate as of November 10, 2020 – and thereafter is 5.41% per 3-month period.
- Interest rate as of February 1, 2021 – and thereafter is 5.41%
- Interest rate as of October 19, 2021 – and thereafter is 5.41 TP3T.
- Interest rate as of April 29, 2022 – and thereafter is 5.45%
- Interest rate as of July 15, 2022 – and thereafter is 6%.
- Interest rate as of October 22, 2022 – and thereafter is 6.66%
- Interest rate as of January 23, 2023 – and thereafter is 7.85%
- Interest rate as of April 12, 2023 – and thereafter is 8.121 TP3T
Last updated: June 7, 2023
Source: General Directorate of Taxes.
