On January 1, 2024, the new law takes effect. “For income tax”. Under the new law, employment income will be taxed at progressive rates of 13% and 23%; net business income will be taxed at progressive rates of 15% and 23%; Investment income is taxed at the respective rates of 8% on dividends and profit distributions and 15% on other investment income.
The Council of Ministers has prepared the draft decision that specifies the analytical list of services, including professional services, provided by self-employed individuals and entities with annual revenues of up to 14 million lekë.
These will pay personal income tax or corporate income tax, starting in the 2024 fiscal year, consisting of activities according to the codes provided in the Nomenclature of Economic Activities (Rev. 2), presented analytically in Table No. 2, which is provided in full at the end of the article. The list contains 262 professions.
According to the decision, in cases where taxpayers are unclear about the categorization of the economic activity they conduct, or about the income tax rate applicable to their activity, The General Directorate of Taxes, based on the Nomenclature of Activities, determines the division and activity to which the respective taxpayer belongs.
The decision states that the list of services will be subject to taxation as of January 1, 2024.
Under the Law “On Income Tax,” as of January 1, 2024, self-employed individuals in liberal professions will no longer be treated as small businesses with a 0.1% rate, but their net business income (profit), after deductible expenses in accordance with Article 22 of the law, Self-employed individuals will be taxed at a rate of 15% on the portion from 0 to 1,400,000 lek and at a rate of 23% on amounts above 1,400,000 lek.
Source: Monitor Magazine.
