(Partially annulled by the Constitutional Court)
On December 22, 2023, the final government decree was approved. https://alprofitconsult.al/vendim-nr-753-date-20-12-2023-per-dispozitat-zbatuese-te-ligjit-nr-29-2023-per-tatimin-mbi-te-ardhurat-i-ndryshuar-regjimi-i-vecante-ndertimi-dhe-profesionet-e-lira/ for the category of businesses considered liberal professions. This category will begin paying profit tax in January 2024. Earlier, a similar document circulated, but it was awaiting finalization and publication in the Official Gazette.
According to the new income tax law, the list of professions set by this government regulation—whether individuals or companies—will pay a 15% tax on profits. This is a legal change that affects a very large category of businesses. Inclusion or exclusion from the list of taxable businesses will be determined by the activity code. Not Yet Evaluated.
In the category of liberal professions, most services are included, while trade, manufacturing, construction, transportation, and accommodation are excluded. Meanwhile, other services such as IT, real estate agencies, technical services (economists, lawyers, architects, etc.), healthcare, and similar will be considered liberal professions and taxed from January 2024. The list below also shows the category of professions that will be taxed.
For natural persons there is a special scheme allowed under the new law, whereby the taxpayer may either accept for tax purposes that profit equals 70% of sales (i.e., expenses are 30% of sales) or document the expenses incurred. The condition is that sales must be less than 10 million Lek. The scheme must be used for three consecutive years.
The case is expected to be sent to the Constitutional Court and may even be repealed in the future, but until then we must implement these legal changes.
Read the Government Decree No. 753, date 12/20/2023.