In implementation of the new “Income Tax” law, all taxpayers providing professional services, in accordance with Government Decree No. 753, dated 20.12.2023, must prepay the tax for 2024 in accordance with the self-declared profit in the 2023 annual declaration.
As for taxpayers newly registered for the first time during 2024, The prepayment installments are based on the registration data declared for the projected profit for the remaining period, from the date of registration until the last month of the annual period, regardless of their registration for tax liabilities: Profit Tax or Simplified Profit Tax.
According to the provisions of Law No. 29/2023, for the 2024 tax period the Simplified Profit Tax and the Profit Tax forms and responsibilities will continue to apply.
The Tax Administration, referring to the legal provision as above and to Instruction No. 26 dated September 8, 2023, clarifies to the taxpayer that:
- The calculation of the 2024 advance installments for all taxpayers registered before December 31, 2023, is based on the profit self-declared by the taxpayers in the annual tax return 23-A, for Profit Tax (with a deadline of March 31, 2024) or Simplified Profit Tax (with a deadline of February 10, 2024). The calculated amount has been divided into 9 installments for the remaining period of April–December 2024.
- For taxpayers classified as Individuals, the calculation of prepayments has been carried out using progressive rates: 15% up to a profit of 14 million lek and 23% on any profit above 14 million lek.
- For taxpayers with legal status other than natural persons, regardless of their tax liability, the calculation of prepayments is carried out at a rate of 15% on profit.
- For taxpayers who during 2023 were partially registered for the Simplified Profit Tax, as well as with Income Tax, the calculation will be based on the total self-declared profit in the two respective returns, and taxpayers will be notified in their e-Filing account regarding the advance payments.
Installments can also be paid on a monthly basis, but they have a three-month term.
Specifically, according to the data below:
- By June 30, for the months of April, May, and June.
- By September 30, for the months of July, August, and September.
- By December 31, for the months of October, November, and December.
The Tax Administration instructs taxpayers that for any uncertainty or if they notice inaccurate installment calculations, they should contact the relevant Regional Directorates to request a review of the installments, in order to have their requests prioritized for fair taxation in accordance with the law.
Source: General Directorate of Taxes.
