Switching to passive status and reactivation

Transition to passive status and reactivation for NPOs

The transition to passive status for NPOs is done at the request of the entity or by the Tax Administration when legal conditions are met. At

• At the request of the entity, when the latter decides to interrupt the activity for a period of more than 12 months or indefinitely.
• By the Tax Administration, in the event that the entity submits declarations with no activity (zero) or when it does not declare for a period of more than 12 consecutive months.

For the entire period that the entity is in "Passive" status, it has no obligation to submit tax declarations (the generation of declarations is interrupted automatically).

Reactivation of the taxpayer occurs in cases when:

• It is requested by the taxpayer for reasons of restarting the activity.
• The entity is found working by the field structures of the Tax Administration.
• n cases where the taxpayer carries out activity even though it is in "Passive" status, it is penalized by the Tax Administration according to the provisions of Law No. 9920, dated 19.05.2008 "On Tax Procedures in the Republic of Albania".

Transition to passive status and reactivation of Public Entities

The transition to passive status of Public Entities is done at the request of the entity or by the Tax Administration when legal conditions are met.

• At the request of the entity – when the latter decides to interrupt the activity for a period of more than 12 months or indefinitely.
• By the Tax Administration – in the event that the entity submits declarations with no activity (zero) or when it does not declare for a period of more than 12 consecutive months.

For the entire period that the entity is in "Passive" status, it has no obligation to submit tax declarations (the generation of declarations is interrupted automatically).

Reactivation of the taxpayer occurs in cases when it is requested by the taxpayer for reasons of restarting the activity.

Source: General Directorate of Taxes.