{"id":55043,"date":"2026-08-04T18:12:00","date_gmt":"2026-08-04T18:12:00","guid":{"rendered":"https:\/\/alprofitconsult.al\/?page_id=55043"},"modified":"2026-08-04T18:12:01","modified_gmt":"2026-08-04T18:12:01","slug":"status-and-contributions","status":"publish","type":"page","link":"https:\/\/alprofitconsult.al\/en\/tatime\/te-vetepunesuarit\/statusi-dhe-kontributet\/","title":{"rendered":"Self-Employed Status Declaration and Contributions"},"content":{"rendered":"

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Home Page<\/a><\/span> | Tax legislation<\/a><\/span> | Self-employed and freelance professions<\/a><\/span> | Self-Employed Status Declaration and Contributions<\/span><\/span><\/div>\n\n\n

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The self-employed status doesn't end with opening a NIPT. It's maintained through timely filings, contributions paid even in years with zero tax, and a client base that doesn't turn invoicing into hidden employment.<\/p>\n\n\n\n

This page shows the declarations filed by the self-employed, the reclassification rule when income comes primarily from a single client, the bases on which the contribution is calculated, and the list of obligations that remain in full even when the tax is 0%.<\/p>\n\n\n\n

Read also: How the self-employed and liberal professions are taxed<\/a>.<\/p>\n\n\n\n

Statements filed by the self-employed<\/h2>\n\n\n\n

Annual income statement<\/h3>\n\n\n\n

The annual income tax return must be filed by March 31 of the following year, even if the tax is zero and even if no activity has taken place. Failure to file results in a fine, regardless of the absence of any payment obligation.<\/p>\n\n\n\n

Quarterly payroll<\/h3>\n\n\n\n

For traders and self-employed individuals, payroll and contributions are reported by the 20th day after the end of each quarter, whereas entities report them monthly. This is the change that often goes unnoticed by those who switch from salaried employment to self-employment.<\/p>\n\n\n\n

Self-Employed Deadlines<\/p>\n\n\n\n

Obligation<\/th>Deadline<\/th><\/tr>
Annual income tax declaration<\/td>March 31 of the following year<\/td><\/tr>
Payroll and contributions<\/td>On the 20th after each quarter<\/td><\/tr>
Annual Individual DIVA Declaration<\/td>When total income exceeds 1,200,000 lek\u00eb<\/td><\/tr>
Sales book, purchase book, and VAT return<\/td>On the 11th and the 14th, when you're on TVSH<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Read also: Who files the DIVA statement and how it is completed<\/a>.<\/p>\n\n\n\n

Status declaration<\/h2>\n\n\n\n

The status declaration is the document by which the self-employed person asserts that their activity is independent, meaning that they themselves decide on the schedule, the tools, and the method of performing the work, and that they are not economically dependent on a single client.<\/p>\n\n\n\n

This statement is not a formality. It is the point from which the administration begins its assessment when the client structure resembles an employment relationship, so its content must align with the contracts and the year's invoices.<\/p>\n\n\n\n

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Attention. Law No. 81\/2025, published in January 2026, changed the treatment of hidden employment. The form, deadline, and mandatory content of the status declaration must be verified. UNVERIFIED, must be confirmed before publication. The 80% and 90% thresholds of Article 12 of Law No. 29\/2023 have been verified.<\/p>\n<\/blockquote>\n\n\n\n

Recertification when income comes primarily from a single client.<\/h2>\n\n\n\n

The law provides for reclassifying self-employed income as employment income when economic dependence is established. The two thresholds are 80% of income from a single client, or 90% of income from fewer than three clients.<\/p>\n\n\n\n

Requalification thresholds<\/p>\n\n\n\n

Situation<\/th>The threshold<\/th>Consequence<\/th><\/tr>
Revenue from a single client<\/td>80% of the total<\/td>Treatment as income from employment<\/td><\/tr>
Revenue from fewer than three clients<\/td>90% of the total<\/td>Treatment as income from employment<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

The consequence of reclassification is that the income is taxed at employment rates and employer contributions become payable. This is the most sensitive point for consultants, developers, and translators working with a major client.<\/p>\n\n\n\n

How much does retraining cost?<\/h3>\n\n\n\n
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A self-employed consultant invoices 1,800,000 lek per year, all from a single client. As a self-employed individual, income tax is 0 lek until December 31, 2029. When the income is reclassified as salary, the standard deduction of 360,000 lek\u00eb results in a taxable base of 1,440,000 lek\u00eb, the 13% tax yields 187,200 lek\u00eb, and the employee contribution is 11%.2% yields 201,600 lek\u00eb and the employer's contribution of 16.7% yields 300,600 lek\u00eb. Additional liabilities amount to 689,400 lek\u00eb for a single year, not including fines and interest.<\/p>\n<\/blockquote>\n\n\n\n

Our recommendation is clear. When work is actually performed for a client, under their schedule and instructions, an employment relationship is the appropriate form. When there are three or more clients and the contracts are independent, self-employment meets all necessary requirements.<\/p>\n\n\n\n

Read also: When the self-employed are considered employees<\/a>.<\/p>\n\n\n\n

Contributions of the self-employed and their base<\/h2>\n\n\n\n

Self-employed contributions are not tied to profit, so they are paid even in years with zero tax and even in years with losses. This is the fixed cost of the status and precisely what distinguishes tax from liability.<\/p>\n\n\n\n

Self-employed contributions<\/p>\n\n\n\n

Contribution<\/th>Monthly basis<\/th>The<\/th><\/tr>
Social security contributions<\/td>Minimum wage, 50,000 lek\u00eb<\/td>The self-employment rate must be confirmed.<\/td><\/tr>
Health insurance<\/td>Double the minimum wage, 100,000 lek\u00eb<\/td>3.4%<\/td><\/tr>
Contributions for the hired employee<\/td>Employee's gross salary<\/td>16.7% employer and 11.2% employee<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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The health contribution of 3.41% on amounts over 100,000 lek yields 3,400 lek per month, or 40,800 lek per year. This amount does not depend on turnover, does not change with profit, and is paid even in a loss year.<\/p>\n<\/blockquote>\n\n\n\n

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Caution. The correct social security contribution rate for the self-employed and the branches it covers must be verified. UNVERIFIED; must be confirmed before publication. The calculation bases\u2014namely the minimum wage of 50,000 lek and twice that amount for health insurance\u2014have been verified.<\/p>\n<\/blockquote>\n\n\n\n

The minimum wage of 50,000 lek\u00eb takes effect on January 1, 2026, so the contribution base changes whenever it changes. Self-employed farmers are paid on a quarterly basis.<\/p>\n\n\n\n

Read also: How much is paid for social security and health insurance?<\/a>.<\/p>\n\n\n\n

Remaining obligations even with zero tax<\/h2>\n\n\n\n

\u2714 Annual income tax return, by March 31
\u2714 Payroll and contributions, by the 20th of each quarter
\u2714 Health insurance contribution and social security contribution, on the minimum bases
\u2714 Tax-compliant electronic invoice for every service, without exception.
\u2714 VAT: when turnover exceeds 10,000,000 lek\u00eb, with books up to the 11th and a return by the 14th.
\u2714 Accounting and maintenance of expense documentation
\u2714 DIVA, when total income exceeds 1,200,000 lek\u00eb or there is other income above 50,000 lek\u00eb<\/p>\n\n\n\n

The zero rate removes only the income tax on business activity. All other obligations remain in full, and penalties for failure to declare arise just as they would for a business that pays.<\/p>\n\n\n\n

Read also: Fiscalization obligations, cash and POS limits<\/a>.<\/p>\n\n\n\n

The mistakes we see<\/h2>\n\n\n\n