{"id":19105,"date":"2024-04-04T08:52:55","date_gmt":"2024-04-04T08:52:55","guid":{"rendered":"https:\/\/alprofitconsult.al\/?p=19105"},"modified":"2024-04-04T08:57:01","modified_gmt":"2024-04-04T08:57:01","slug":"inheritance-tax-gifts-and-gambling-winnings-legal-changes-after-january-2024","status":"publish","type":"post","link":"https:\/\/alprofitconsult.al\/en\/tatimi-i-trashegimise-dhuratave-dhe-fitimeve-nga-lojerat-e-fatit-ndryshimet-ligjore-pas-janar-2024\/","title":{"rendered":"Inheritance, Gift, and Gambling Winnings Tax (Legal Changes after January 2024)"},"content":{"rendered":"<p>1. Chapter VI of this law applies to individuals and entities that are:<\/p>\n\n\n\n<p>a) Residents of the Republic of Albania who receive a gift or inheritance of assets located in Albania or abroad, or receive winnings from gambling developed in the Republic of Albania or abroad; <\/p>\n\n\n\n<p>and the<\/p>\n\n\n\n<p>b) residents in the Republic of Albania, who receive a gift or inheritance of assets located in Albania, or receive winnings from gambling activities conducted in Albania.<\/p>\n\n\n\n<p>Gambling winnings are income earned from categories of gambling, as defined in the prevailing gambling legislation.<\/p>\n\n\n\n<p>3. \"Assets\" within the meaning of this article include movable or immovable property or money earned without any compensation in return.<\/p>\n\n\n\n<p>4. Inheritance under this article includes movable or immovable property or money acquired as a result of a transfer due to death from the deceased to their heirs, after deducting hereditary obligations.<\/p>\n\n\n\n<p>5. Winnings from gambling are taxed separately and cannot be consolidated.<\/p>\n\n\n\n<p>6. Assets from gifts and inheritances are valued at their nominal value or market value, whichever is greater. The valuation rules for the calculation of capital gains under this law shall also apply to assets from gifts and inheritances.<\/p>\n\n\n\n<p>7. Exempt from tax:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>a) donations and inheritance acquired by\/or through first and second-degree legal heirs, according to articles 361 to 363 of the Civil Code, as well as donations and inheritance within the sibling relationship;<\/p>\n<\/blockquote>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>b) gifts and inheritances received in addition to those defined in letter \u201ca\u201d up to 5,000,000 ALL per taxpayer for real estate and up to 1,000,000 ALL for movable assets per taxpayer;<\/p>\n<\/blockquote>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>c) Transfer of ownership rights to legal heirs according to articles 361 to 363 of the Civil Code, respectively through donation and\/or renunciation of property, when the property originates from mandatory co-ownership acquired based on Law no. 7501, dated 19.7.1991, \u201cOn Land\u201d, as amended.<\/p>\n<\/blockquote>\n\n\n\n<p>8. The Minister responsible for finance determines, by instruction, the requirements regarding the verification of the sources of creation of inherited or donated assets.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-style-default has-small-font-size is-layout-flow wp-block-quote-is-layout-flow\" style=\"font-style:normal;font-weight:400\">\n<p class=\"has-small-font-size\"><strong>60. Inheritance, gift, and gambling winnings tax<\/strong><\/p>\n\n\n\n<p class=\"has-small-font-size\">Income from gifts, inheritances, and gambling winnings earned in the Republic of Albania by residents and non-residents are taxed at a rate of 15% without deducting any of their costs. Income from gifts and inheritances provided for in paragraph 7 of Article 60 of the law are not taxed. <\/p>\n\n\n\n<p class=\"has-small-font-size\">For the purpose of calculating income from gifts and inheritance, gifted or inherited items are valued at the time of gifting at the nominal value or market value, whichever is greater. If a nominal value is available for the gifted or inherited item, it is compared to the market value of that item, and whichever of them is higher constitutes the basis or income on which the tax rate of 15%is applied. The valuation rules for the value of gifted or inherited items are based on recognized practices through recognized appraisers or currently in force official acts, regarding the methodology for determining the value of items.<\/p>\n\n\n\n<p class=\"has-small-font-size\"><em>Examples<\/em><\/p>\n\n\n\n<p>\u2013 The value of a painting, a classic car, a gemstone ring, an antique set of equipment, etc., of this nature, when gifted\/inherited, can be determined by licensed experts in the field;<\/p>\n\n\n\n<p>The value of a donated\/inherited residence can be determined either by licensed real estate appraisers or by using current legal\/sub-legal acts for real estate valuation.<\/p>\n\n\n\n<p>Income from inheritance, gifts, and gambling is declared through the annual personal income tax return, in accordance with Article 60.<\/p>\n\n\n\n<p>The tax administration verifies the completeness and accuracy of tax liability statements, pursuant to Article 60. This will include obtaining and utilizing information from a number of third-party sources:<\/p>\n\n\n\n<p>\u2013 For wealth inheritances in Albania, details regarding the value and destination of the inheritances. For this purpose, notaries will need to deposit data with the General Directorate related to inheritance and donation deeds, such as: beneficiary data and the values or assets acquired.<\/p>\n\n\n\n<p>Data from banks regarding incoming or outgoing account transfers within the country, which may indicate gifts, inheritances, or gambling winnings.<\/p>\n\n\n\n<p>The General Directorate for the Prevention of Money Laundering to obtain data reported according to anti-money laundering regulations.<\/p>\n\n\n\n<p>\u2013 Information from the Central Bank regarding cross-border transfers, which may represent gifts, inheritances, or gambling winnings, income from abroad.<\/p>\n\n\n\n<p>\u2013 Cadastral information regarding the property transfer that does not appear to have resulted from a commercial sale.<\/p>\n\n\n\n<p>\u2013 Data relating to foreign financial accounts obtained through the automatic exchange of information.<\/p>\n\n\n\n<p>\u2013 Gaming revenue data obtained by betting industry operators through withholding tax statements.<\/p>\n\n\n\n<p>The tax administration, in order to obtain this information as needed, may establish communication protocols to receive the aforementioned reports, including their legal basis, reporting frequency, and relevant data.<\/p>\n\n\n\n<p>Article 60 defines the taxation of non-residents in relation to Albanian sources of gifts, inheritances, and gambling winnings. In order to also ensure the fulfillment of these obligations, information sources from third parties must be included:<\/p>\n\n\n\n<p>\u2013 For inheritances from properties in Albania, details of the values and their destination (inheritances).<\/p>\n\n\n\n<p>\u2013 Central Bank Information on cross-border transfers that may represent gifts, inheritances, or gambling winnings being transferred abroad.<\/p>\n\n\n\n<p>\u2013 Cadastral Information Regarding Property Transfers That Do Not Appear to Have Resulted from a Commercial Sale.<\/p>\n\n\n\n<p>\u2013 Data related to gambling profits obtained by operators in the betting industry. Consideration must also be given to how reporting requirements related to transactions with non-residents should be handled.<\/p>\n<cite>Article 60 of Directive No. 26, dated 8.9.2023 On Income Tax<br><\/cite><\/blockquote>\n\n\n\n<figure class=\"wp-block-pullquote\"><blockquote><p>9. The tax rate for inheritances, gifts, and gambling winnings under this article is 15%, without deducting any costs.<\/p><\/blockquote><\/figure>\n\n\n\n<p>Source: <a href=\"https:\/\/www.tatime.gov.al\/c\/6\/70\/tatimi-mbi-te-ardhurat\" target=\"_blank\" rel=\"noreferrer noopener\">General Directorate of Taxes.<\/a><\/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>1. Kreu VI i k\u00ebtij ligji aplikohet ndaj personave fizik\u00eb dhe entiteteve q\u00eb jan\u00eb: a) rezident\u00eb n\u00eb Republik\u00ebn e Shqip\u00ebris\u00eb, t\u00eb cil\u00ebt marrin nj\u00eb dhurat\u00eb ose trash\u00ebgimi t\u00eb aseteve t\u00eb ndodhura n\u00eb Shqip\u00ebri ose jasht\u00eb saj, ose marrin fitime nga loj\u00ebrat e fatit t\u00eb zhvilluara n\u00eb Republik\u00ebn e Shqip\u00ebris\u00eb ose jasht\u00eb saj; dhe b) jorezident\u00eb [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":19106,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[47,100],"tags":[493,90,494,492],"class_list":["post-19105","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","category-tatime","tag-dhuratat","tag-tatimi-mbi-te-ardhurat","tag-tatimi-mbi-te-ardhurat-peresonale","tag-trashegimia"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Tatimi i trash\u00ebgimis\u00eb, dhuratave dhe fitimeve nga loj\u00ebrat e fatit (ndryshimet ligjore pas Janar 2024) - 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\/inheritance-tax-gifts-and-gambling-winnings-legal-changes-after-january-2024\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Tatimi i trash\u00ebgimis\u00eb, dhuratave dhe fitimeve nga loj\u00ebrat e fatit (ndryshimet ligjore pas Janar 2024) - AlProfit Consult\" \/>\n<meta property=\"og:description\" content=\"1. 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