- A review of tax installments is requested from the regional tax directorate when the calculated installment does not match the actual course of the year.
- Advance payments are calculated on the tax for the previous year, not on the income for the following year.
- For January, February, and March, the base is the tax from two years ago divided by 12, while for the other nine months it is the tax from the previous year divided by 12.
- The installment deadlines are March 31, June 30, September 30, and December 31.
The right to request a review of installments is permanent and not limited to a single year. The following notice from the General Directorate of Taxes is dated 2024 and refers to the transition to the new law, but the mechanism it explains remains valid today.
The request is submitted to the regional tax office where you are registered, with your calculation compared to that of the system. Our page explains how the installments are calculated step by step. prepayments, while the rates and thresholds are on the page of profit tax rates.
The General Directorate of Taxes, through a notification On its official website, it has informed taxpayers about the possibility of requesting a reassessment of the advance payments of corporate income tax. Below you will find the full notice:
Clarification from the General Directorate of Taxes
DPT: The installment calculation also takes taxpayers' expenses into account.
“We instruct taxpayers that in the event of an incorrect declaration on their part, they should contact the relevant Regional Directors for installment reviews in order to ensure fair taxation.”
With the primary goal of keeping taxpayers and the general public well-informed and to prevent misinformation in the media, the Tax Administration clarifies that the calculation of the preliminary installments of the Income Tax for the year 2024, for professional services, is based on % of the self-declared profit for 2023.
Since 2024 is the first year of implementation of the new law, the installments are based on the 2023 profit declaration, for which the declaration is made in accordance with the provisions of the old “Income Tax” law.
A priori knowledge of expenses for professional services
We emphasize that the optional 30% apriori recognition of expenses for taxpayers engaged in “professional services” applies under the new Law only to the 2024 income declaration, which is due by March 31, 2025. This does not mean that in the calculation of the preliminary installments for 2024, the expenses incurred by taxpayers are not recognized, as the calculation is based on the self-declared 2023 profit and profit is calculated as the result of actual revenues and expenses incurred.
There is no technical possibility that the 2024 advance installments can be calculated on the 2024 profit. Therefore, as the Law stipulates, the advance installments will be calculated on the profit of the previous year.
We advise any taxpayer who claims that the 2024 preliminary installment is too high or in the event of an incorrect declaration on their part, to submit a request for a review of the installments to the relevant Regional Tax Directorate, which will prioritize any request for this purpose, for fair taxation in accordance with the law.”
Read morevery much https://alprofitconsult.al/dispozita-te-mbledhjes-se-tatimit-mbi-fitimin-ndryshimet-ligjore-pas-janar-2024/ on the method of calculating tax installments, declaration, and the right to request a review of profit tax installments.
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 notificationsWhen it's worth requesting a review
The request makes sense when the current year has performed significantly worse than the previous year, when you've lost a major client, when you've closed a unit, or when the prior year's statement contained an error that inflated the profit. When an installment is paid late, late‐payment interest is 0.061% of the outstanding amount for each day, up to 365 days, so the review is required before the installment due date, not after.
