Prepaid income tax payments. Calculation, installment adjustments, and declaration.

Ky artikull mban tekstin e ligjit dhe pjesët përkatëse të udhëzimit për deklaratën vjetore, parapagimet dhe korrigjimin e kësteve, me shembuj të llogaritur. Përmbledhjen praktike të rregullave e mban faqja jonë e prepayments, ndërsa normat janë te faqja e of norms and thresholds.

Pikë që ngatërrohet shpesh. Kësti nuk llogaritet mbi fitimin e vitit që po kalon, sepse ai nuk dihet ende. Ai llogaritet mbi tatimin e vitit paraardhës. Prandaj biznesi që ka pasur një vit shumë të mirë dhe një vit pasues të dobët paguan këste të fryra, derisa të kërkojë korrigjimin.

Period	Base of calculation
Janar, shkurt, mars	Tatimi i dy viteve më parë, pjesëtuar me 12
Prill deri dhjetor	Tatimi i vitit paraardhës, pjesëtuar me 12
Quarterly deadlines	March 31, June 30, September 30, December 31
When the tax for the previous year is zero	Kestrels are not born.

Kërkesa për korrigjim dorëzohet te drejtoria rajonale tatimore, përpara afatit të këstit. Pas afatit, mbi detyrimin e papaguar llogaritet kamatëvonesë 0.06% në ditë, deri në 365 ditë, dhe korrigjimi i mëvonshëm nuk e fshin atë.

Annual tax return

1. Every person subject to this law is required to declare to the tax authority all income, whether taxed in any manner or exempt from tax. For natural persons under 18 years of age, the tax return is filed by their legal guardian.

2. The annual tax return is filed with the tax authority no later than March 31 of the year following the tax year for which the return is filed.

3. If the taxpayer has died, the return is filed by his legal heirs for the total income earned up to the date of death.

4. If the taxpayer changes tax residence, he must file a tax return for any income generated up to the date of the change in residence.

5. The method of declaration, including electronic filing, and the relevant declaration forms shall be submitted in accordance with the provisions of the guidance issued by the minister responsible for finance for the implementation of this law. Taxpayers who maintain accounting in accordance with the requirements of the relevant law submit the annual return together with the financial statements, as well as other data specified in the guidance of the minister responsible for finance for the implementation of this law.

6. The tax payable by the taxpayer is paid into accounts authorized by the state budget treasury.

Documentation requirements

1. The tax base is determined by adjusting the expenses and revenues reported in the income and expense statement, in the manner prescribed by this law.

2. The document used as the basis for justifying expenses for tax purposes is the invoice, as defined in the applicable legislation on invoices and the monitoring system for turnover for cash and non-cash sales, as well as any other document prepared or issued in accordance with the guidelines approved by the minister responsible for finance.

Prepayments

1. This article applies to:
a) self-employed persons or sole traders, for their business income; and
b) entities.

2. During the following tax period, the taxpayer prepays to the tax authorities' account the quarterly installments of income tax by March 31 for the months of January, February, and March; by June 30 for the months of April, May, and June; by September 30 for July, August, and September; and by December 31 for October, November, and December. Installments may also be paid on a monthly basis, no later than the 15th of each month, in the amounts as follows:

a) for each of the months of January, February, and March of the following tax period, the amount of the profit tax for the tax period two years prior, divided by 12;

b) for each of the other nine months of the following tax period, the amount of income tax for the preceding tax period divided by 12.

3. Cases of tax prepayments when the taxpayer commences operations during the tax period of the second preceding year, during the prior tax period, or in the subsequent tax period are detailed in the guidance of the minister responsible for finance.

4. In the event that the taxpayer, at any time during the tax period, demonstrates to the tax authorities that the income tax for this tax period will be, in a significant manner, lower than the income tax for the previous period or the second preceding period, the tax authorities shall accept the reduction of advance payments in accordance with the rules set forth in the guidance of the minister responsible for finance.

Part of Instruction No. 26, dated September 8, 2023, on Income Tax

“63. Prepayments

63.1 Calculation of prepayment installments during the tax year for corporate income tax

The taxpayer subject to corporate income tax, during the tax year, prepays the monthly/quarterly installments of income tax:

– by March 31, for the months of January, February, and March;
– by June 30, for the months of April, May, and June;
– by September 30, for the months of July, August, and September; and
– by December 31, for the months of October, November, and December.

Bazuar në të dhënat e deklaratës së fitimit të tatueshëm të vitit paraardhës, të dorëzuar nga tatimpaguesi, deklaratë që duhet të dorëzohet brenda datës 31 mars të vitit vijues, administrata tatimore llogarit këstet mujore dhe ato tremujore të parapagimeve të tatimit mbi fitimin korporativ për periudhën prill-dhjetor të vitit vijues dhe për periudhën janar-mars të vitit të ardhshëm. Këstet e parapagimeve i njoftohen tatimpaguesit në rrugë elektronike në llogarinë e tij brenda datës 10 prill të vitit vijues.

The calculated prepayment installments are paid by the taxpayer at the end of each quarter, but they may also be paid on a monthly basis, by the 15th of each month. When the prepayment installments are paid on a quarterly basis, each quarterly installment is calculated as the sum of the monthly installments for the respective quarter.

63.2 Calculation of installments for prepayments of corporate income tax:

63.2.1 In cases where the taxpayer has more than one prior tax period in which they commenced economic activity, the monthly installments of advance income tax payments are calculated as follows:

Example for calculating prepayments for the current year 2023 and beyond:

The profit tax for 2022 was 1,200,000 lekë, while the profit tax for 2021 was 1,080,000 lekë. The monthly/quarterly prepayment installments for 2023 will be:

– Pra për 3-mujorin e parë të vitit 2023, kësti i parapagimeve është përcaktuar në prill të vitit paraardhës 2022, bazuar në deklaratën e fitimit të tatueshëm të vitit 2021. Konkretisht: për periudhën janar-mars 2023: 1,080,000/12 muaj = 90,000 lekë/muaj. Totali i parapagimit për 3- mujorin janar-mars 2023 do të jetë 90,000 x 3 muaj = 270,000 lekë.

– Për periudhën prill-dhjetor 2023: 1,200,000/12 muaj = 100,000 lekë/muaj. Totali për 9-mujorin prill-dhjetor 2023 do të jetë 100,000 x 9 muaj = 900,000 lekë, ose 300,000 lekë për çdo 3-mujor ose 100,000 lekë çdo muaj.

– Për periudhën janar-mars 2024: 1,200,000/12 muaj = 100,000 lekë/muaj. Totali për 3-mujorin e parë të vitit pasardhës 2024 është 100,000 x 3 muaj = 300,000 lekë, ose 100,000 lekë çdo muaj.

63.2.2 In cases where the taxpayer has fewer than one tax period since commencing economic activity, the monthly installments of advance income tax payments are calculated as follows:

Example

Shembull i llogaritur për biznesin e ri

Të dhënat: Veprimtaria ekonomike ka filluar në datën 1 prill 2022. Tatimpaguesi ka deklaruar se tatimi mbi fitimin i vlerësuar prej tij për periudhën prill-dhjetor 2022 dhe janar-mars 2023 mund të jetë 100.000 lekë çdo muaj.

According to the balance sheet filed for the economic activity of 2022, the profit tax for the period April-December amounts to 1,350,000 ALL.

Calculation of advance income tax payments for the following periods:

– Për periudhën janar-mars 2023 është marrë në konsideratë vetëvlerësimi i tatimpaguesit në prill 2022 dhe parapagimet e kësaj periudhe do të jenë 100,000 lekë çdo muaj ose 300.000 lekë për 3- mujorin e parë 2023;

– Për periudhën prill-dhjetor 2023: Fitimi i deklaruar për vitin 2022 ka qenë 1.350.000 lekë: 9 muaj = 150.000 lekë në muaj. Pra për periudhën prill-dhjetor 2023 parapagimet e tatimit mbi fitimin do jenë 150.000 lekë çdo muaj ose 150.000 x 3 = 450.000 lekë çdo tremujor, ose 1,350.000 lekë si 9- mujor;

– Për periudhën janar-mars 2024 parapagimet do të jenë 150,000 lekë çdo muaj ose 150,000 x 3 = 450,000 lekë si 3-mujor.

Kur veprimtaria fillon në vitin vijues

63.2.3 Në rastet kur tatimpaguesi e fillon veprimtarinë në vitin vijues, këstet mujore të parapagimeve të tatimit mbi fitimin llogariten duke u bazuar në deklaratën parashikuese të tatimpaguesit për shumën e vlerësuar të fitimit dhe tatimit mbi fitimin, pjesëtuar me numrin e muajve të mbetur deri në fund të vitit, por pa marrë në konsideratë muajin e parë të regjistrimit. Kjo formulë llogaritjeje do të shërbejë edhe për përcaktimin e kësteve mujore të parapagimeve të tatimit mbi fitimin për 3-mujorin e parë të vitit pasardhës. Për 9-mujorin në vijim prill-dhjetor të vitit pasardhës, këstet mujore të parapagimeve të tatimit mbi fitimin llogariten duke marrë në konsideratë të dhënat e deklaratës së fitimit të tatueshëm të vitit paraardhës.

Example

The taxpayer registers on August 10, 2023, and declares that his income tax for the remaining period of 2023 will be 800,000 lek.

His monthly prepayment installments of income tax are calculated as follows:
– Për secilin nga muajt e periudhës shtator-dhjetor 2023: 800.000: 4 = 200.000 lekë/muaj;
– Për secilin nga muajt e tremujorit të parë janar-mars 2024: 200.000 lekë/muaj, ose 200,000 lekë/muaj x 3 muaj = 600.000 lekë për 3-mujorin e parë 2024.
The same methodology will be used to calculate the monthly/quarterly installments of tax prepayments even in cases where previous tax periods resulted in losses.

Downward correction of installments

63.3 Downward adjustment of monthly installments of corporate income tax prepayments. The taxpayer, in any month during the tax period, may request and demonstrate to the tax authorities that the corporate income tax for that tax period will be, in a material way, lower than the income tax for the preceding period or the second preceding period. In such cases, the tax authority, based on the taxpayer's arguments, documentation, and evidence, reduces the amounts of the calculated prepayments.

The arguments that a taxpayer may present to request the reduction or elimination of the calculated prepayment installments are:

When reported sales in the past three months, prior to the request for installment reductions, have fallen by more than 201 TP3T compared with the average monthly sales over the twelve months before this three-month period, installment payments are reduced in proportion to the decrease in goods and services sales.

– When purchases reported in the last quarter have fallen by more than 30% compared with the average monthly purchases over the 12 months preceding this quarter. The reduction in prepayment installments is made in proportion to the decrease in purchases of goods and services.

– When there are deficiencies in the performance of sales contracts for goods or services, construction contracts, etc., which will significantly reduce the taxpayer's activity and income for the remaining months of the following year, for which the reduction of monthly installments of the profit tax prepayments is requested.

Rastet që pranohen për reduktim

When the contracts under which revenues were generated in previous years expire, or when the contracted public facilities or other public works are completed.

– When misfortunes or damages have occurred in the taxpayer's business during the following year and will lead to a significant reduction in economic activity.

– When lines are closed, certain activities are cut back, and the workforce is significantly reduced, etc., as a result of the contraction of operations.

In cases where the conditions under which the prepayment installments were reduced have changed, the tax administration increases them.

63.4 Upward adjustment of the monthly installments of corporate income tax prepayments.

In cases where, based on the data declared for the first nine months of the following year, it is found that the taxpayer has increased their average monthly revenue from the sale of goods and services by more than 10% compared to the average monthly revenue of the previous year, the tax administration may adjust upward the prepayments for the last quarter of the year. The increase in prepayment installments cannot exceed 75% in accordance with the percentage growth in revenue resulting from the comparison of the current year with the previous year.

Example

The average monthly gross income in 2022 was 100,000 lek.
Të ardhurat bruto mesatare mujore janar-shtator 2023 janë 130.000 lekë.
The average monthly revenue growth is 30%.
Rritja e kësteve të parapagimeve për periudhën tetor-dhjetor do të rriten jo më shumë se 22,5%

Zgjedhjet e tatimpaguesit ndaj vlerësimit

(30 % × 75 %) of prepayment installments calculated at the beginning of the year.
The taxpayer:
– may accept the assessment of the tax administration;
– may upwardly revise it beyond the tax administration's assessment and require higher advance payments; or
– may challenge the increase in prepayments made by the tax administration, according to the procedures not provided for in tax appeal.
In cases where the taxpayer himself determines that the estimated income tax for the following year, will be more than 10% higher than the monthly prepayment installments calculated under the law, he must file an estimated profit tax return for the fiscal year no later than September 10. On this basis, the tax administration increases the installments for the months of October–December of the following year.

Example

Shembull i llogaritur i kësteve

– Këstet e llogaritura për muajt janar-mars: 300,000 lekë (100,000 lekë/muaj).
– Këstet e llogaritura për muajt prill-shtator: 1,200,000 lekë (200,000 lekë/muaj).
January–September installments: 300,000 + 1,200,000 = 1,500,000 lek.
– Këstet e llogaritura paraprakisht për muajt: tetor-nëntor-dhjetor: 600,000 lekë (3×200,000).
– Installments for the entire fiscal year: 2,100,000 lek (300,000 lek + 1,200,000 lek + 600,000 lek).
Tatimi mbi fitimin i vlerësuar nga vetë tatimpaguesi që vetëdeklarohet deri në 10 shtator është 2,700,000 lekë, pra është mbi 10 për qind më i lartë se këstet mujore të parapagimeve të llogaritura [(2,700,000 lekë – 2,100,000 lekë)/2,100,000 lekë = 28%]. Në këto kushte, vlerësohet një këst shtesë për muajt tetor-dhjetor prej 200.000 lekësh në çdo muaj (2,700,000 lekë, 2,100,000 lekë = 600,000 lekë => 600.000 lekë/3 muaj = 200,000 lekë/muaj). Në total shuma e këstit të parapagimit për 3- mujorin tetor-dhjetor do të jetë 600.000 lekë + 600.000 lekë = 1,200,000 lekë për këtë 3-mujor. Nëse si rezultat i auditimit nëpërmjet kontrollit të thelluar dhe vlerësimit tatimor, konstatohet se fitimi i tatimpaguesit në vitin paraardhës është deklaruar më i ulët se ai që rezulton nga auditimi, administrata tatimore mund të rrisë këstet e parapagimeve të llogaritura më parë për vitin vijues dhe 3-mujorin e parë të vitit pasardhës. Rritja e kësteve të parapagimit bëhet në raport me shumën e rritur të fitimit si rezultat i rivlerësimit krahasuar me fitimin e deklaruar.
The tax administration notifies the taxpayer of the increase in prepayment installments, in accordance with the provisions of Law No. 9920 of May 19, 2008, “On Tax Procedures in the Republic of Albania,” as amended.

63.5 Calculation of prepayment installments during the tax year for personal income tax on business and self-employment income.

The taxpayer subject to personal income tax on business and self-employment, during the tax year, prepays the quarterly installments of the personal income tax:

– by March 31, for the months of January, February, and March;
– by June 30, for the months of April, May, and June;
– by September 30, for the months of July, August, and September; and
– by December 31, for the months of October, November, and December.

Bazuar në të dhënat e deklaratës së tatimit mbi të ardhurat personale nga biznesi/vetëpunësimi, të vitit paraardhës, të dorëzuar nga tatimpaguesi, deklaratë që duhet të dorëzohet brenda datës 31 mars të vitit vijues, administrata tatimore llogarit këstet tremujore të parapagimeve të tatimit mbi të ardhurat personale nga biznesi/vetëpunësimi për periudhën prill-dhjetor të vitit vijues dhe për periudhën janar-mars të vitit të ardhshëm. Këstet e parapagimeve i njoftohen tatimpaguesit në rrugë elektronike në llogarinë e tij brenda datës 20 prill të vitit vijues.

63.5.1 Calculation of prepayment installments

63.5.1.1 In cases where the taxpayer of personal income tax from business/self-employment has more than two tax periods in which they commenced economic activity, the quarterly installments of advance payments of personal income tax from business/self-employment are calculated as follows:

Example for calculating prepayments for the current year 2023 and beyond:

The personal income tax on business/self-employment for 2022 was 120,000 lek, while for 2021 this tax was 108,000 lek. The quarterly prepayment installments will be:

– Për periudhën janar-mars 2023: 108,000/12 muaj = 9,000 lekë/muaj. Totali për 3-mujorin janar-mars 2023 do të jetë 9,000 x 3 muaj = 27,000 lekë për këtë 3-mujor.

– Për periudhën prill-dhjetor 2023: 120,000/12 muaj = 10,000 lekë/muaj. Totali për 9-mujorin prill-dhjetor 2023 do të jetë 10,000 x 9 muaj = 90,000 lekë , ose 30,000 lekë për çdo 3-mujor.

– Për periudhën janar-mars 2024: 120,000/12 muaj = 10,000 lekë/muaj. Totali për 3-mujorin e parë të vitit pasardhës 10,000 x 3 muaj = 30,000 lekë. Pra për 3-mujorin e parë të vitit pasardhës, kësti i parapagimeve është përcaktuar në prill të vitit paraardhës, bazuar në deklaratën e të ardhurave personale nga biznesi dhe vetëpunësimi të vitit 2022.

63.5.1.2 In cases where the taxpayer has fewer than one tax period in which they commenced economic activity, the quarterly installments of the personal income tax advance payments on business/self-employment income are calculated as follows.

Example

The data

Shembull për të ardhurat nga vetëpunësimi

Veprimtaria ekonomike ka filluar në datën 1 prill 2022. Tatimpaguesi ka deklaruar se tatimi mbi të ardhurat personale nga biznesi/vetëpunësimi i vlerësuar prej tij për periudhën prill-dhjetor 2022 mund të jetë 10.000 lekë çdo muaj.

Sipas bilancit të depozituar për veprimtarinë ekonomike të vitit 2022, tatimi mbi të ardhurat personale nga biznesi/vetëpunësimi për periudhën prill-dhjetor ka rezultuar 135,000 lekë.
Calculation of personal income tax prepayments from business/self-employment for the following periods:
– Për periudhën janar-mars 2023 do të merret në konsideratë vetëvlerësimi i tatimpaguesit në prill 2022 dhe parapagimi i kësaj periudhe do të jetë 30,000 lekë për 3-mujorin e parë 2023.
– Për periudhën prill-dhjetor 2023: tatimit mbi të ardhurat personale nga biznesi/vetëpunësimi i deklaruar për vitin 2022 ka qenë 135,000 lekë: 9 muaj = 15,000 lekë në muaj. Pra për periudhën prill- dhjetor 2023 parapagimet e tatimit mbi fitimin do të jenë 15,000 lekë x 3 muaj = 45,000 lekë çdo 3- mujor.
– Për periudhën janar-mars 2024 parapagimet do të jenë 15,000 lekë x 3 muaj = 45,000 lekë për këtë 3-mujor.

Këstet tremujore për veprimtarinë e re

63.5.1.3 In cases where the taxpayer commences activity in the following year, the quarterly installments of advance payments of personal income tax on business/self-employment are calculated based on the taxpayer's projected statement of the estimated amount of personal income from business/self-employment, and the tax on that income, divided by the number of months remaining until the end of the year, but without taking into account the first month of registration. This calculation formula will also serve to determine the prepayment installment of personal income tax on business/self-employment for the first quarter of the following year. For the following nine-month period from April through December of the next year, the quarterly installments of the business/self-employment personal income tax prepayments are calculated based on the data from the previous year's taxable personal income statement.

Example

The taxpayer registers on September 10, 2023, and declares that the personal income tax on his business/self-employment for the remaining period of 2023 will be 60,000 lek.

His quarterly prepayment installments of tax are calculated:
– Për tremujorin e fundit tetor-dhjetor 2023: 60,000 lekë,
– For the first quarter of 2024: 60,000 lek.
The same methodology will be used to calculate the monthly/quarterly installments of tax prepayments even in cases where previous tax periods resulted in losses.

Korrigjimi i kësteve të vetëpunësimit

6. Adjustment of personal income tax installments on business and self-employment income. A downward adjustment of personal income tax installments on business and self-employment income may be requested by the taxpayer at any time, whereas an upward adjustment may only be made for the last quarter of the year.

For the adjustment of installments of personal income tax on business and self-employment, the principles set forth in points 3 and 4 above, as provided for corporate income tax, shall apply.

…

5. If the tax authorities assess that based on the indicators of the first nine months, the revenues for the upcoming tax period will exceed by more than 10 percent the average monthly revenues of the previous period each month, they may increase the prepayments for the last quarter of the year in accordance with their estimated revenues.

Supplemental tax return

1. In the case where the taxpayer finds that the tax payable on his most recent income tax return should have been higher or the tax loss lower, he is required to file an additional tax return and pay the difference between the previously declared payable tax and the supplementary payable tax, in accordance with the provisions of the applicable legislation on tax procedures in the Republic of Albania.

2. In the event that the taxpayer determines that the tax payable on his most recent income tax return should have been lower or the tax loss higher, he is required to file an additional tax return in accordance with the provisions of the legislation in force on tax procedures in the Republic of Albania.

Source: General Directorate of Taxes.