The following information is valid and applicable until December 31, 2023, following the entry into force of the new Law No. 29/2023 On Income Tax. Please browse our website for more details and updated information at: https://alprofitconsult.al/tatime/
Personal income tax is calculated on the income of individuals who are legally obligated to declare it.
Resident individuals who earn taxable income within and outside the territory of the Republic of Albania, submit the annual income tax return to the central tax administration.
Resident individuals are obligated to complete and submit the Annual Individual Income Declaration if they earn gross annual income from all sources (within and outside the Republic of Albania) exceeding the total amount of 2,000,000 (two million) ALL.
If resident individuals earn annual gross income from all sources, both within and outside Albania, of less than 2 million lek, they are not required to complete and submit the Annual Individual Income Tax Return. This exemption does not apply to individuals who are employed by more than one employer, regardless of whether their total annual gross income is below 2,000,000 (two million) lek. These individuals declare on their annual income statement, in a single amount, all income from employment, calculate the total amount of payroll tax liability, deduct, where applicable, the tax withheld by the employer, and determine the amount of tax liability to be paid to the state budget.
Non-resident individuals who earn taxable income sourced in the Republic of Albania file their annual income tax return with the central tax administration.
Non-residents must complete and submit the Individual Annual Income Declaration if they earn total annual gross income from sources in the Republic of Albania exceeding 2,000,000 (two million) ALL.
Non-resident individuals who earn annual gross income sourced within the territory of the Republic of Albania in an amount less than 2,000,000 (two million) ALL are not obligated to complete and submit the Annual Individual Income Tax Return. This exemption does not apply to individuals employed by more than one employer, regardless of whether their total annual gross income is below 2,000,000 (two million) ALL. These individuals declare in their annual income tax return, as a single sum, all income earned from employment, calculate the total tax liability on wages, deduct, where applicable, the tax withheld by the employer, and determine the amount of tax liability to be paid to the state budget.
All individuals whose total gross annual income from all sources is less than 2,000,000 (two million) ALL are exempt from the obligation to complete and submit the Individual Annual Income Declaration.
The annual income declaration may also be filed by any individual who, although not legally required to do so, wishes to benefit from it. from the deductible expenses scheme provided for in this law, when that individual meets the conditions for benefiting from the expense deduction.
In this case, the sum of gross annual income, from all sources, must not exceed 1,050,000 (one million and fifty thousand) lekë per year (indexed annually).
Source: General Directorate of Taxes.