{"id":16015,"date":"2022-10-13T14:16:35","date_gmt":"2022-10-13T14:16:35","guid":{"rendered":"https:\/\/alprofitconsult.al\/?page_id=16015"},"modified":"2024-11-30T21:00:43","modified_gmt":"2024-11-30T21:00:43","slug":"tax-revenue","status":"publish","type":"page","link":"https:\/\/alprofitconsult.al\/en\/tatime\/organizata-jofitimprurese\/te-veprosh-si-nje-ojf-apo-ent-publik\/tatimi-ne-burim\/","title":{"rendered":"Withholding Tax"},"content":{"rendered":"<div class=\"yoast-breadcrumbs\"><span><span><a href=\"https:\/\/alprofitconsult.al\/en\/\">Home<\/a><\/span> | <span><a href=\"https:\/\/alprofitconsult.al\/en\/tatime\/\">Tax legislation<\/a><\/span> | <span><a href=\"https:\/\/alprofitconsult.al\/en\/tatime\/organizata-jofitimprurese\/\">Non-Profit Organization and Public Entities<\/a><\/span> | <span><a href=\"https:\/\/alprofitconsult.al\/en\/tatime\/organizata-jofitimprurese\/te-veprosh-si-nje-ojf-apo-ent-publik\/\">Operating as an NGO or Public Entity<\/a><\/span> | <span class=\"breadcrumb_last\" aria-current=\"page\">Withholding Tax<\/span><\/span><\/div>\n\n\n<p><\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"720\" src=\"https:\/\/alprofitconsult.al\/wp-content\/uploads\/2022\/10\/AlProfit-Consult-Tatimi-ne-burim-OJF-1024x720.jpg\" alt=\"\" class=\"wp-image-16914\" srcset=\"https:\/\/alprofitconsult.al\/wp-content\/uploads\/2022\/10\/AlProfit-Consult-Tatimi-ne-burim-OJF-1024x720.jpg 1024w, https:\/\/alprofitconsult.al\/wp-content\/uploads\/2022\/10\/AlProfit-Consult-Tatimi-ne-burim-OJF-300x211.jpg 300w, https:\/\/alprofitconsult.al\/wp-content\/uploads\/2022\/10\/AlProfit-Consult-Tatimi-ne-burim-OJF-150x105.jpg 150w, https:\/\/alprofitconsult.al\/wp-content\/uploads\/2022\/10\/AlProfit-Consult-Tatimi-ne-burim-OJF-768x540.jpg 768w, https:\/\/alprofitconsult.al\/wp-content\/uploads\/2022\/10\/AlProfit-Consult-Tatimi-ne-burim-OJF-1536x1080.jpg 1536w, https:\/\/alprofitconsult.al\/wp-content\/uploads\/2022\/10\/AlProfit-Consult-Tatimi-ne-burim-OJF.jpg 1920w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"ftoc-heading-6\">Withholding Tax on Income<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"ftoc-heading-7\"><strong>Duties of the Withholding Tax Agent<\/strong><\/h3>\n\n\n\n<p><strong>Withholding and Transferring Tax<\/strong><br>Withholding tax on specified payments and transferring it to the tax authorities by the 20th of the following month. For dividends, the tax must be transferred within 3 months of the profit distribution.<\/p>\n\n\n\n<p><strong>Reporting and Documentation<\/strong><br>Submitting declarations with details on beneficiaries and amounts withheld. Maintaining records and documents for potential tax audits.<\/p>\n\n\n\n<p><strong>Verification and Certificates<\/strong><br>Requesting and storing Tax Residency Certificates for beneficiaries. Ensuring the accuracy of all data and declarations.<\/p>\n\n\n\n<p>Employers also act as agents for payroll taxes and social security contributions.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"ftoc-heading-8\"><strong>Withholding Tax Declaration<\/strong><\/h3>\n\n\n\n<p><strong>Declaration Content:<\/strong><br>The withholding tax declaration is based on the model specified in Annex No. 5 of the instruction and includes identifying data for:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Payer of the income.<\/li>\n\n\n\n<li>The Beneficiary, whether an individual, a sole trader a self-employed person, or a profit\/non-profit entity.<\/li>\n<\/ul>\n\n\n\n<p>The declaration covers all categories of entities, regardless of their specific tax status.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"ftoc-heading-9\"><strong>Income and Payments Subject to Withholding Tax<\/strong><\/h3>\n\n\n\n<p>Withholding tax is applied to income from&nbsp;<strong>dividends, interest, royalties, gambling winnings, and rent<\/strong>, provided the beneficiary is an Albanian resident or a permanent establishment in Albania. This applies regardless of the beneficiary's status, except for exempted cases.<\/p>\n\n\n\n<p>Tax is withheld on all&nbsp;<strong>royalties<\/strong>&nbsp;(copyrights, licenses, trademarks), irrespective of the beneficiary type.<\/p>\n\n\n\n<p>Organizers of&nbsp;<strong>gambling activities<\/strong>&nbsp;must withhold tax on all player winnings and report accordingly to the tax administration.<\/p>\n\n\n\n<p>Rent Tax&nbsp;<strong>is<\/strong>&nbsp;withheld when the lessor is an individual and the lessee is an entity, trader, or self-employed person with a NUIS. In transactions between two individuals, tax is not withheld at the source; the beneficiary must self-declare.<\/p>\n\n\n\n<p>For services provided by individuals without a NUIS, tax is withheld according to Article 65.<\/p>\n\n\n\n<p>No tax is withheld for:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Income exempt from Corporate Income Tax.<\/li>\n\n\n\n<li>Dividends meeting the conditions of Article 29.<\/li>\n\n\n\n<li>Interest from Eurobonds or specific bank instruments.<\/li>\n<\/ul>\n\n\n\n<p>For non-resident beneficiaries, tax is withheld on&nbsp;<strong>dividends, interest, royalties, gambling, construction, and performances<\/strong>, while respecting Double Taxation Avoidance Agreements. In the absence of such agreements, Albanian legislation applies.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Withholding Tax Rates<\/h3>\n\n\n\n<p><strong>Tax on Dividends and Profit Distributions<\/strong><br>For payments related to dividends and profit distributions approved by the entity's governing bodies, the payer of the income (including NGOs and public entities that distribute profit) is required to withhold tax at the legal rate of <strong>8%<\/strong>.<\/p>\n\n\n\n<p><strong>Tax on Other Income Categories<\/strong><br>For any other category of income included in paragraphs 1 and 2 of Article 58 of the law (such as royalties, interests, rents, etc.), the withholding tax rate is <strong>15%<\/strong>.<\/p>\n\n\n\n<p>This rule applies to all entities, including NGOs and public entities, and must be implemented in accordance with the Law on Income Tax, regardless of the status of the beneficiaries, including individuals and non-profit entities.<\/p>\n\n\n<div class=\"gdlr-core-widget-box-shortcode\" style=\"color: #ffffff ;background-color: #000014 ;\"  ><h3 class=\"gdlr-core-widget-box-shortcode-title\" style=\"color: #ffffff ;\"  >Do you have a question?<\/h3><div class=\"gdlr-core-widget-box-shortcode-content\" ><p class=\"translation-block\">Do not hesitate to <a href=\"https:\/\/alprofitconsult.al\/en\/contact\/\" target=\"_self\">contact<\/a> us. We are a team of experts and will be happy to speak with you.<\/p>\n<\/div><\/div>","protected":false},"excerpt":{"rendered":"<p>Mbajtja n\u00eb burim e tatimit mbi t\u00eb ardhurat Detyrat e Agjentit t\u00eb Tatimit n\u00eb Burim Mbajtja dhe Transferimi i TatimitMbajtja e tatimit p\u00ebr pagesat e p\u00ebrcaktuara dhe transferimi n\u00eb autoritetet tatimore deri m\u00eb 20-t\u00eb t\u00eb muajit pasardh\u00ebs. P\u00ebr dividend\u00ebt, tatimi transferohet brenda 3 muajve nga shp\u00ebrndarja e fitimit. Deklarimi dhe DokumentacioniDor\u00ebzimi i deklarat\u00ebs me detaje [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":16914,"parent":16011,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-16015","page","type-page","status-publish","has-post-thumbnail","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Tatimi n\u00eb burim - AlProfit Consult<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/alprofitconsult.al\/en\/taxes\/non-profit-organization\/do-you-operate-as-an-ngo-or-a-public-entity\/tax-revenue\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Tatimi n\u00eb burim - AlProfit Consult\" \/>\n<meta property=\"og:description\" content=\"Mbajtja n\u00eb burim e tatimit mbi t\u00eb ardhurat Detyrat e Agjentit t\u00eb Tatimit n\u00eb Burim Mbajtja dhe Transferimi i TatimitMbajtja e tatimit p\u00ebr pagesat e p\u00ebrcaktuara dhe transferimi n\u00eb autoritetet tatimore deri m\u00eb 20-t\u00eb t\u00eb muajit pasardh\u00ebs. 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