The General Directorate of Taxation announces to all taxpayers that the new fiscal package has entered into force as of January 1, 2019.
The main legal changes are primarily related to:
- Tax Procedures
- Income Tax
- Value-added tax
- National Taxes.
Specifically:
Tax Procedures
- A natural person with the same personal identification number is registered only once by the National Business Center. They are entitled to register and obtain a new NIPT/NUIS from the NBC only after the existing NIPT/NUIS has been deregistered.
- Taxpayers who apply to the National Business Center to switch to passive status will need to have paid all tax obligations beforehand.
- Penalties are foreseen for both the seller and the buyer if they conduct transactions with entities in “Passive” status.
- Notice and requests for payment may also be made electronically.
- Late payment interest is no longer mandatory in cases of appeal/complaint.
- If the taxpayer accepts the tax assessment and pays the liability, the penalty is reduced by 30%.
INCOME TAX
Payroll tax:
0%for gross monthly salary up to 30,000 lek;
13% for a gross monthly salary over 30,000–150,000 lek
23% for a gross monthly salary over 150,000 lekë
Source of income: Income of a non-resident, obtained as a result of services performed for a resident, shall also be considered income sourced in Albania.
Profit Tax: Profit tax will also be levied on any non-resident person, who is not registered according to Albanian legislation and is not subject to Income Tax.
A nonresident individual must prepare a taxable income statement, which must be filed by March 31 of the following year.
Unknown expenses: Expenses for allowances exceeding 501% of the annual gross salary fund will be considered unknown.
Dividend Tax The 81 percent tax rate will apply to undistributed profits realized in 2018 and earlier years, including reserves and capitalized earnings, provided that:
- the tax on undistributed profits from 2017 and prior years, to be paid by September 30, 2019;
- The dividend tax for the 2018 profit is to be paid by August 20, 2019.
Warning! If the above conditions are not met, the taxpayer will pay a 15% dividend tax.
Value Added Tax
There are changes to the tax rates to the extent of:
- 6% for audiovisual media advertising services;
- 6% for the supply of public passenger transport vehicles with a capacity of 9+1 seats or more, powered by an electric motor, until December 31, 2021. As of January 1, 2022, the tax rate becomes 10%.
- 6% for supplying books of any kind.
Active Processing Regime Subcontractors: The tax rate 0% will apply to the provision of processing services for non-Albanian goods intended for re-export, by authorized taxable persons and their subcontractors, based on the provisions provided for by the Customs Code, for operations under the active processing regime.
Farmers' compensation rate: A rate of 6%will be applied to compensate farmers.
VAT Exemptions: The list of VAT exemptions is supplemented by:
- Agricultural machinery supply;
- supply of agricultural inputs;
- the provision of veterinary services, with the exception of those for household pets;
- import of raw materials used for drug production.
National Taxes
- A tax of 35 lek per kilogram on imported plastic materials/articles and plastic packaging, excluding primary raw materials.
- A tax on glass packaging, for both imported and domestically produced packaging, at a rate of 5 lek per kilogram.
- The raw material tax in primary form imported and used for domestic plastic product manufacturing, at the rate of 25 lek/kg.
Notice from DPT https://www.tatime.gov.al/d/8/45/0/847/ndryshimet-kryesore-te-paketes-fiskale-2019