The General Directorate of Taxation, in continuation of the information on the 2019 Fiscal Package, informs all taxpayers of the main changes to Law No. 8438 of December 28, 1998 “On Income Tax,” as amended.
More specifically:
The income tax rate on employment income, based on the level of gross pay, is applied as follows:
- 0% for the monthly gross salary up to 30,000 lek;
- 13% for the gross monthly salary of 30,001–150,000 lek.;
- 23% for the monthly gross salary over 150,000 lek.
Income sourced in Albania also includes income of a non-resident earned as a result of services provided to a resident. For this income, the resident receiving the service will withhold tax at source from the payments made to the non-resident.
Any non-resident individual who is not registered under Albanian legislation and is not subject to Income Tax will also be subject to Capital Gains Tax. To fulfill this obligation, nonresident persons shall complete the special return of taxable income, which must be filed by March 31 of the following year, and pay the tax at the time of filing.
For the purpose of calculating the fiscal year's results, expenses for per diems exceeding 501% of the annual gross salary fund will be considered unrecognized expenses.
The dividend tax will be applied at the 8% tax rate. For undistributed profits realized in 2018 and earlier years, including reserves and capitalized earnings, this rate applies provided that:
- the tax on undistributed profits from 2017 and prior years, to be paid by September 30, 2019;
- The dividend tax on the 2018 profit must be paid by August 20, 2019.
If the above conditions are not met, the taxpayer will pay 15% tax on the dividend.
If the movable or immovable property securing the loan is foreclosed on before the deadlines set by law for the write-off of bad debt, the bank's prior provisions, recognized as deductible expenses, will continue to be treated as such.
All persons residing in the Republic of Albania, central and local government bodies, non-profit organizations, and any other entity recognized by applicable legislation are required to withhold tax at source from the gross amount of payments for consulting services.
The General Directorate of Taxes will continuously inform taxpayers of every turnover bracket about changes in tax legislation that have already entered into force.
Published on the official DPT page https://www.tatime.gov.al/d/8/45/0/863/mbi-ndryshimet-kryesore-te-ligjit-per-tatimin-mbi-te-ardhurat