- Law No. 4/2024 does not introduce new rules on its own; it ratifies Normative Act No. 7, dated December 14, 2023.
- The regulatory act amended Law No. 29/2023 just days before it was set to take effect on January 1, 2024.
- The first change affected the payroll deadline, splitting it according to VAT registration.
- The second amendment affected the transitional provisions of Article 69, including the calculation of prepayments for professional services in 2024.
This law is a short enabling act, so its text says nothing about the business. The value lies in the act it enacts. Below is the official text of the law, preceded by what actually changed.
What did Normative Act No. 7/2023 change?
First amendment, in Article 65 of Law No. 29/2023. The payroll deadline was divided according to VAT registration. Entities and self-employed individuals or traders registered for VAT submit the monthly payroll by the 20th of the following month. Self-employed individuals and traders who are not registered for VAT submit theirs quarterly, by the 20th of the month following the quarter. This distinction remains in effect today and is explained on our website. Declaration in e-Filing.
The second amendment, in Article 69, transitional provisions. The transition from the old law to the new law for the 2024 tax period was regulated, including the forms to be used and how the 2024 prepayments would be calculated for those providing professional services. For the latter, the 2024 prepayments were calculated based on previous years' declarations, applying the rates of the new law. How installments are calculated today is explained on our page. prepayments.
Why it matters today. These provisions are transitional, meaning they had their main effect in 2024. However, they explain why that year's installments were calculated on a basis many taxpayers did not expect, and why the right to request their review was opened. The rates in effect today are on the page of of norms and thresholds.
Text of Law No. 4/2024
In support of Article 101 of the Constitution, upon the proposal of the Council of Ministers,
Parliament
of the Republic of Albania
SET:
Approval of the normative act, with the force of law, No. 7, date 14.12.2023, “For some additions and changes in law no. 29/2023, ‘On Income Tax’,” as amended.
Approved on 01/25/2024.
Announced by decree no. 42, dated 06.02.2024, of the President of the Republic of Albania, Bajram Begaj.
Source: Official Gazette.
