Reimbursement of prepaid installments for liberal professions

Reimbursement of the prepayments of tax for the year 2024 is an officially recognized right for taxpayers providing professional services. Notice from the Tax Administration It clearly states that the request can be made at any time and the right is not lost.

This situation arose from a legal clash that went through the Constitutional Court. This article tells you who qualifies for the refund, how to apply step by step, and what you need to plan by 2030.

Read also: Regulated professions are being reorganized. What's changing?

How do you apply for a refund?

The procedure has three steps. First, verify in Electronic filing that your bank account in lekë is declared and active in the system. Without this, the refund will not be processed.

Secondly, submit the request for the refund of the prepayments for 2024 installments via e-Filing or to the Regional Tax Directorate where you are registered.

Third, track the status of the request. Since the right is not extinguished, even those who have not yet applied have not lost anything.

First case. Prepaid installments and income are up to 14,000,000 lek.

Get reimbursed, like the consultant and architect in the examples below. Apply at any time with a declared and active bank account in lek.

Second case. The income exceeds 14,000,000 lek.

You do not benefit from the relief. The 15% rate tax on profit continues as normal.

Why was the refund of prepaid installments introduced?

Events unfold over the course of a few months and are easier to understand when arranged in order.

The moment	What happened?
December 20, 2023	Government Decree No. 753 implements Law No. 29/2023 “On Income Tax” for liberal professions.
January 2024	Freelance professionals are taxed at 151% on their earnings and prepay installments.
March 2024	The Constitutional Court repeals the income tax obligations for professions with earnings up to 14,000,000 lek.
After the decision	Return to tax 0% and the right to a refund for the prepayments for 2024
December 31, 2029,	The 0% rate period ends.
January 2030	All categories with a turnover of up to 14,000,000 lek transfer to the 15.1% profit tax.

The January 2024 change affected lawyers, economists, certified accountants, auditors, architects, engineers, real estate agencies, and IT and marketing professionals. For natural persons with turnover up to 10,000,000 lek, it was allowed to calculate profit as 70% of turnover. You can find the details of that change at Our January 2024 post.

The Constitutional Court struck down the measure on two grounds. It ran counter to the principles of legal certainty and freedom of economic activity, and the final list of professions was published only eight days before implementation. The result is the current regime., Tax 0% until December 31, 2029 for income up to 14,000,000 lek.

Calculated examples

Three scenarios show how the decision translates into actual figures.

Professional	Annual turnover	Prepaid installments	Result
Marketing consultant	8,000,000 lek	840,000 lek per year, first installment 210,000 lek	Full refund for amounts under 14,000,000 lek.
Architect	13,000,000 lek	Initial installment: 341,250 lek	Full refund for amounts under 14,000,000 lek.
Consultant	15,000,000 lek	According to the normal calculation	Without reimbursement, the 15% tax continues.

The first example is calculated using the 70% rule. From a turnover of 8,000,000 lek, the taxable profit was taken as 5,600,000 lek and the annual tax of 151 TP3T yielded 840,000 lek, divided into four installments of 210,000 lek each.

How are you preparing for 2030?

Norma 0% has an expiration date, and five years go by quickly. The regime, rates, and the comparison between wages and self-employment are kept up to date on our website. the self-employed and liberal professions. For the activity structure, the two main approaches each have their own arguments.

First case. Continuation as a natural person.

Suitable for modest turnover. The structure remains simple and administrative costs are low. On the other hand, the tax falls directly on personal income and personal assets are not separated from those of the business.

Second case. Conversion into a limited liability company.

LLC is a separate legal entity. Personal assets are protected, profits can be reinvested, and growth can be planned more flexibly. The cost is more comprehensive administration and mandatory accounting. You can find the full features at Information about LLC..

The choice isn't made in December 2029. It's made now, with your figures in front of you and plenty of time to implement it without rushing.

Read also: Expected legal changes in taxes

Frequently asked questions

Do I lose the right to a refund if I don't apply now?

No. The Tax Administration has clarified that the right is not extinguished and that the application can be made at any time.

Where is the request for reimbursement of prepaid installments submitted?

On e-Filing or at the Regional Tax Directorate where you are registered.

What should I have ready before applying?

A bank account in lek, declared and active in the administration system. Without it, the reimbursement payment will not be made.

Who doesn't get a refund?

Professionals with annual income above 14,000,000 lek. For them, the 15% tax on profit continues as normal.

How long does the 0% rate for liberal professions last?

Until December 31, 2029, for income up to 14,000,000 lek. From January 2030, the 15.1% tax rate on profit applies.