Income from employment includes any benefit of the individual that is related to employment relationships, including salaries, rewards, bonuses, and compensations.
Payments made for future or past employment relationships are also considered income from employment and are taxed at the time of payroll declaration.
Rewards for directors and members of the board of directors are treated as income from employment and taxed as such.
If payments are received from an entity different from the employer, the paying entity withholds tax at 15%.
Income from the transfer or secondment of employees is taxed as income from employment.
If a self-employed person obtains more than 80% of their income from a single client, their income is taxed as employment income.
Immediate payments given in cases of job termination are taxed at 15% if paid in a single lump sum.
Tax on employment income for foreign employment agencies is not less than 80% of the total fee paid by the Albanian entity to the foreign agency.
Benefits exempted from tax include meals and drinks in the workplace, work equipment, and travel and accommodation expenses for work purposes.