- Every individual taxpayer of personal income tax is any natural person who is employed, a merchant, or self-employed.
- A resident is taxed on income from all sources, both within and outside the country.
- Residency is established by 183 days of stay within a year or by having the center of one's life interests in Albania.
- Documenting income is the taxpayer's own obligation.
This section defines who is taxed and on what. The distinction between resident and non-resident determines whether worldwide income or only income sourced in Albania is taxed. The full rules are on our website. tax residence.
From here also arises the obligation for the individual declaration. Who submits it and until when it explains the page. individual statement.
Personal income tax payer
Every natural person is considered a taxpayer within the meaning of this law and is responsible for personal income tax.
“Natural person” shall mean any: a) self-employed individual; b) sole trader; and c) individual as understood by the Civil Code, including employees, as well as any other natural person who earns income from any source, including donations, inheritance, or gambling winnings.
Residence
A tax resident for personal income tax purposes is any taxpayer who meets one of the following conditions:
a) has a stable residence in the territory of the Republic of Albania during the tax year; or
b) is present in the Republic of Albania during the tax year for a period, or periods, that in total reach 183 days or more. The day of departure from the country and the day of entry into the country shall be treated separately as days of his presence in the country; or
c) is a citizen of the Republic of Albania, who, outside the territory of the Republic of Albania, performs duties as an employee or official of the government of the Republic of Albania; or
c) has a shop, professional office, factory, or other place where the individual engages in business in the Republic of Albania, or has their habitual residence in the Republic of Albania, unless the individual has a permanent residence outside the Republic of Albania for the entire tax year and also does not have a permanent residence in the Republic of Albania; or
d) has the center of vital interests in the Republic of Albania, which means significant personal or economic ties with the Republic of Albania.
Documentation
The personal income tax payer is obliged to keep all the necessary documentation to verify the data declared in the income statement.
Every self-employed individual or trader, who is not subject to the legal obligation of keeping accounts in accordance with current legislation on accounting and financial statements, is obliged to keep at least a register of income, expenses, accounts receivable, and liabilities or debts, according to a simplified structure, as defined in the bylaws implementing this law.
Read here https://alprofitconsult.al/ligj-nr-29-2023-per-tatimin-mbi-te-ardhurat/ the full text of the law.
Source: General Directorate of Taxes.
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