Të ardhurat bruto për individin #2

Gross revenue consists of:

1. Gross income from wages or remuneration from an individual's employment relationships.

Income from wages includes:

a. Basic wage;
b. Additions to the base salary that are permanent in nature, such as

• supplements for seniority,
• difficulty,
• residential proximity,
• special nature of work or service,
• Other pay and reward supplements made by other legislative and regulatory acts.

Other rewards include:

• all income or rewards obtained from the results of work at the individual's current place of employment.
• income received by an individual in the form of a bonus from a special fund,
• from funds created by various legal or statutory acts of societies, such as 13th salary, or various payments of this nature.
• income earned from participation in commissions, committees, councils, executive boards, supervisory boards, etc.

Income from wages and remunerations for employment relationships of consulates officials, diplomats, or similar officials of other countries, as well as international organizations, who, during the performance of their official duties in the Republic of Albania, in accordance with international conventions or agreements signed or accepted by the Republic of Albania or the Albanian Government, have diplomatic status, shall be exempt.

2. Gross income from dividends for participation in a commercial company or business activities.

Net profit (after payment of profit tax or simplified small business profit tax) of individual traders is not included, regardless of whether the latter are subject to profit tax or simplified small business profit tax.

3. Gross rental income and capital gains from the sale of real estate owned by the declarant.

Rental income shall be considered all income earned from the rental of land, buildings, and other premises used for housing, industrial, commercial, service activities, etc., but not limited to these.

The rental value of the building is determined in the notarized lease agreement, in accordance with the relevant legislation. The agreement must, among other things, clearly specify the address of the building, the area in square meters, and the monthly rental value of the property.

Caution:
In no case shall the rental value of the building be less than the minimum rental value, as determined by a Decision of the Council of Ministers. The minimum monthly value, per square meter of rentable building area, is equal to 0.3 % of its sales price, which in turn, is determined in the instruction of the Council of Ministers, “On the approval of the average construction cost of housing, by the National Housing Authority”, which is approved annually (download VKM at the bottom of the page).

Tax on income from the transfer of ownership is paid by the individual who transfers the ownership right over the immovable property.

With the transfer of ownership, a sale or donation of real estate is understood. This group includes the resulting income from the transfer of ownership of real estate, land, and buildings.

Tax payment is made at the Real Estate Registration Office, prior to the real estate registration.

4. Gross interest income from banks.

Income from bank interest includes all interest from individuals' personal or joint accounts, in banks or other financial institutions, as well as all interest from personal or joint term deposits, in the form of a term account, a term deposit certificate, a term deposit agreement, and any other income in the form of interest

Net capital gains, created from investments in securities or real estate;

6. Gross winnings from lotteries or other gambling games; includes gross income earned in lotteries or gambling games as defined in the law “On Gambling in the Republic of Albania”

7. Gross income from intellectual property, licenses, exclusive rights and other assets, which consist only of rights and have no physical form.

This is income arising from the use of, or the right to use, copyrights in literature, art, music or science, which include the use of, or the right to use, cinematographic films, films and sound or video recordings for radio or TV, any patent, trademark, design or model, plan, secret formula, process or other information of a technical nature, relating to industrial, commercial or scientific activities.

8. Capital gain from the donation.

Donation is a contract whereby one party transfers ownership of a specific thing or a real right to the other party without compensation, and the other party accepts it.

9. Gross income earned abroad, the territory of the Republic of Albania;

10. Other gross income.

This category includes all earned income not listed above.
Examples of such revenues include revenue from emphyteusis and loans.

The term “emphyteusis” will be understood as the contract by which a person is granted the right to use and improve immovable property. The income from emphyteusis is considered the periodic remuneration in cash or in kind, paid to the owner of the immovable property by the person who takes possession of the property.

Caution:
In cases where the user, under the contract between the parties, incurs expenses to improve and adapt this property to his needs, those expenses shall be considered income for the individual owner of the property and shall be taxed as if they were income from enfiteuse.

Income from abroad shall be deemed to be any income derived from lending money or similar assets.

Caution:
Income defined as income exempt from personal income tax according to the provisions of the law “On Personal Income Tax” (in Article 8/1 of this law) is not included in gross income for the purpose of completing the income statement.

Source: General Directorate of Taxes.

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