Notice regarding the submission of financial statements for fiscal year 2019

The General Directorate of Taxes brings to the attention of taxpayers the legal procedure for submitting the profit tax payment declaration and financial statements for the 2019 fiscal year, in accordance with Law No. 8438 of December 28, 1998 “On Income Tax,” as amended; the Minister of Finance's Instruction No. 5, dated January 30, 2006, “On Income Tax,” as amended; and Council of Ministers“ Decision No. 922, dated December 29, 2014 ”On the mandatory filing of tax returns and other tax documents exclusively in electronic form,“ as well as the requirements of Law No. 25/2018 ”On Accounting and Financial Statements." The taxpayer must submit the Profit Tax Return form according to the model approved by the Directive. This form is completed in accordance with the explanatory notes. Likewise, they electronically submit to the tax administration the balance sheet, along with the financial statements and their annexes. To provide convenience for taxpayers, the format will be the same as that submitted to the National Registration Center (QKB), specifically:

• The balance sheet (assets, liabilities, and equity);
• Statement of income and expenses;
• Statement of changes in equity, statement of cash flow, or statement of cash movements (cash flow);
• Annex for explanatory explanations.

Additional documentation required under Law No. 9920 of May 19, 2008 “On Tax Procedures in the Republic of Albania,” Article 60, and Law No. 8438 of December 28, 1998 “For the income tax,” as amended, the Minister of Finance's Instruction No. 5, dated January 30, 2006, “On income tax,” as amended, which shall be submitted electronically together with the financial statements, is:

• The lease agreement for the rented premises or the proof of ownership for the property;
• Inventory status of goods for sale as of December 31, 2019 (analytical);
• Inventory of owned transportation equipment;
• Schedule of material long-term assets (Building).

Financial statements (statements of assets, liabilities, and equity), income and expense statement, statement of changes in equity, statement of cash flows, the schedule of fixed assets will be submitted electronically in PDF (scanned) format and in Excel format. The financial statements submitted in PDF (scanned) format must be signed and sealed by the company's administrator. The appendix for explanatory notes, the report of the company's authorized expert, lease agreements for rented premises, and proof of ownership for owned properties will be submitted electronically only in PDF (scanned) format. The inventory of goods for sale as of December 31, 2019 (analytical), the inventory of owned transportation assets, and the statement of tangible long-term assets (Buildings) will be submitted in Excel format, provided that the submitted version is immutable. During the submission of the 2019 financial statements, based on Law No. 25/2018 of May 10, 2018 “For Accounting and Financial Statements”In Article 3(18), taxpayers must declare, before submitting their financial statements, the following information in their system account:

1. The preparer of financial statements (balance sheet), the employed economist, the licensed certified accountant, or the accounting firm providing accounting services.In the Annual Balance Sheet submission format under the Accounting menu, the taxpayer's e-Filing account has been updated with the three fields as described above.
2. The company administrator and his contact number;
3. The income statement section to be completed when submitting the financial statements.

The formats of the financial statements and additional documents are as follows: Statement of Financial Position to the right Performance statement and income and expenditure statement by nature to the right Performance overview – income and expenditure statement by function  to the right Overview of Indirect Monetary Instrument Flows to the right Direct Monetary Instrument Flows Dashboard  to the right Real Estate Buildings  to the right Mobile Home Formatting  Source: General Directorate of Taxes.