The General Directorate of Taxes has published the following announcement on its official website regarding the review of profit tax installments for the category of natural persons with annual income less than 10 million lek.
Based on in-depth analyses by the Tax Administration, it has been concluded that for a specific category of approximately 7,000 taxpayers, the minimum expenditure of 30%, as recognized by law, may be taken into account. This formula has been applied to approximately 7,000 taxpayers who, during 2023, recorded expenses of less than 30% of their income, and since the law allows the option to approximate the 30% expense.
The Tax Administration assessed this option and considered it lawful to apply it in advance to the advance payments of Corporate Income Tax for 2024.
This interpretation has affected, as mentioned above, about 7,000 taxpayers out of approximately 25,000 who offer professional services in total.
With the aim of facilitating taxpayers and responding to their requests directed to the respective Regional Tax Directorates, the Tax Administration has revised the Profit Tax installments for 2024, taking into account 3 categories of taxpayers in this recalculation, from which:
- Taxpayers who, during 2024, are registered with two tax responsibilities (TTHF+TF);
- Corporate income taxpayers who had installments generated for the January-March 2024 period;
- Taxpayers, natural persons with turnover up to 10 million lek, for whom the recognition of expenses has been pre-calculated at 30%, pursuant to Article 14 of the new law.
The Tax Administration emphasizes that these are prepayments and that the final calculation of Income Tax will be carried out in the annual declaration for 2024.
Additionally, the Tax Administration advises taxpayers that for every request to review installment payments with reductions, accompanied by the relevant reasoning, they should address the Regional Tax Directorates, which will continue to process their requests with priority.