Note on the legal basis, September 2026. This page refers to Law No. 8438 of December 28, 1998, on income tax, which is no longer in effect. It has been replaced by Law No. 29/2023. The content below is preserved for reference, but before you act, verify the current rule.
Price Transfer is sanctioned by Law No. 42/2014 for certain additions and amendments to Law No. 8438 of December 28, 1998, “On Income Tax,” as amended.
The purpose of Transfer Pricing for the tax administration is to preserve the taxable base for transactions between companies considered related parties, and for the taxpayer it is to avoid double taxation.
Transfer pricing highlights the transactions carried out by multinational companies that have part of their business activities in Albania (in the form of a subsidiary or branch).
If a taxpayer subject to corporate income tax participates in one or more controlled transactions, it must determine its taxable profit in a manner consistent with the arm's length principle.
Compliance with the arm's length principle for a controlled transaction will be determined by applying the most appropriate transfer pricing method
The law and the Transfer Pricing Directive require taxpayers to prepare and submit sufficient information and analysis to verify that the terms of their controlled transactions comply with the arm's length principle.
The Transfer Pricing Guidance stipulates that only taxpayers who, during the reporting period, have total controlled transactions (including loan surpluses) exceeding 50,000,000 lek are required to complete this form. When determining a taxpayer's total controlled transactions for the reporting period, absolute values must be used.
The deadline for submitting the “Annual Notification of Controlled Transactions” is the date set for the submission of the “Profit Tax Declaration and Payment Form.” In the event of failure to timely submit the “Annual Notification of Controlled Transactions,” in accordance with the relevant provisions of the Minister of Finance's directive “On Transfer Pricing,” the taxpayer is subject to a fixed penalty of 10,000 (ten thousand) lekë, for each month of delay.
The transfer pricing legislative package is available at the bottom of this page.
International institutions that assisted in building the sector and implementing the legislative package.
- World Bank Group – IFC experts
- OECD, in cooperation with the Italian Revenue Agency – through the “Borderless Tax Inspectors” program.
