{"id":18305,"date":"2023-11-06T12:13:48","date_gmt":"2023-11-06T12:13:48","guid":{"rendered":"https:\/\/alprofitconsult.al\/?p=18305"},"modified":"2023-11-06T12:13:50","modified_gmt":"2023-11-06T12:13:50","slug":"corporate-income-tax-specific-provisions-of-corporate-income-tax-legal-changes-after-january-2024","status":"publish","type":"post","link":"https:\/\/alprofitconsult.al\/en\/tatimi-mbi-te-ardhurat-e-korporates-dispozita-specifike-te-tatimit-mbi-te-ardhurat-e-korporates-ndryshimet-ligjore-pas-janar-2024\/","title":{"rendered":"Corporate Income Tax: Specific Provisions of Corporate Income Tax: (Legal changes after January 2024)"},"content":{"rendered":"

Exclusion from participation<\/strong><\/h2>\n\n\n\n

In determining the taxable income of a resident entity, dividends received are excluded from taxable income if:<\/p>\n\n\n\n

a) the recipient entity holds at least 10%of the share capital or voting rights of the distributing entity, by value or number; and<\/p>

b) Shares or minimum participation have been held for an uninterrupted period of at least 24 months.<\/p><\/blockquote>\n\n\n\n

Article 1 of this law also applies to a non-resident corporate income tax entity if the participation relates to business activities carried out by a non-resident in the Republic of Albania through an entity established in the Republic of Albania.<\/p>\n\n\n\n

If dividends are distributed by a paying entity to a recipient entity that has not held the shares or participation for a period of 24 months, but meets the conditions of points 1, letter \u201ca\u201d, or 2 of this Article, the recipient entity may temporarily claim the exemption provided for in these points, provided that it lodges with the tax administration security for the amount of tax that would be payable in the absence of such exemption. The tax administration may call upon the security if the recipient entity does not hold the shares or participation for at least 24 months. The exemption becomes final and the security is returned to the recipient on the date the shares or participation have been held for a minimum of 24 months.<\/p>\n\n\n\n

Interest limitation rules<\/strong><\/h2>\n\n\n\n

To the extent permitted by this law, interest is deductible from business income in the tax year in which it is incurred up to thirty percent (30%) of the entity's earnings before interest, taxes, depreciation, and amortization (EBITDA).<\/p><\/blockquote>\n\n\n\n

Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) is calculated by adding the tax-adjusted amounts for excess interest, as well as the tax-adjusted amounts for depreciation and amortization to the income subject to tax. Income excluded from tax is also excluded from the entity's EBITDA.<\/p>\n\n\n\n

For the purposes of this article, \u201cexcess interest\u201d means the amount by which an entity's deductible interest exceeds the interest income and other economically equivalent taxable income received by the entity.<\/p>\n\n\n\n

The interest for which the deduction is refused under point 1 of this article shall be carried forward for the next 5 years.<\/p>\n\n\n\n

This regulation does not apply to:<\/p>\n\n\n\n