Double taxation occurs when the same taxpayer pays tax on the same income in two different countries. This situation creates an unfair burden on businesses and individuals with cross-border activities, which is why countries enter into Double Taxation Avoidance Agreement (DTAA)<\/a> that coordinate how each income will be taxed in each state. Albania, like many other countries, has such a network of bilateral tax agreements with partner states, aiming to promote investment and trade without double taxation. The effective implementation of these agreements is key for the Albanian business community, especially now that the economy is becoming increasingly globalized.<\/p>\n\n\n\n In July 2024, the Ministry of Finance approved Instruction No. 11, dated 07.23.2024<\/a>, i cili vendosi kriteret dhe procedurat e reja p\u00ebr zbatimin n\u00eb praktik\u00eb t\u00eb MSHTD-ve n\u00eb Shqip\u00ebri Ky udh\u00ebzim vjen pas gati 20 vitesh nga udh\u00ebzimi i m\u00ebparsh\u00ebm (No. 6, dated 10.2.2004<\/a>) dhe reflekton ndryshimet ligjore e realitetin e ri ekonomik e fiskal t\u00eb vendit. S\u00eb fundmi, n\u00eb korrik 2025, po ky udh\u00ebzim u ndryshua dhe plot\u00ebsua me Instruction No. 15, dated 8.7.2025<\/a> to address some practical ambiguities and to update the process according to current needs.<\/p>\n\n\n\n Hereafter, we will explain the main content of the instruction, the legal basis and key fiscal principles it presents; we will highlight recent changes and their reasons; as well as analyze the implementation of tax agreements in Albania to date \u2013 what challenges there have been and how the new instruction is expected to address them. <\/p>\n\n\n\n Furthermore, we will discuss the importance of FTAs for Albanian businesses, presenting the updated list of current agreements, a concrete step-by-step example of applying an agreement, a discussion on the domestic legal framework (including the hierarchy between national laws and international agreements), key risks of non-compliance\/misinterpretation, and recommendations for further improvements in line with international best practices.<\/p>\n\n\n\n Instruction No. 11\/2024<\/a> It aims to clarify and unify the way the provisions of the MSHTDs are applied in Albania. It clearly defines the legal basis for implementation (based on Article 102(4) of Constitution<\/a> and in the laws in effect<\/a>and repeals the old instruction from the year 2004<\/a>, duke modernizuar k\u00ebshtu qasjen pas nj\u00eb periudhe t\u00eb gjat\u00eb zhvillimesh ekonomike e ligjore Udh\u00ebzimi i ri fillon me disa p\u00ebrkufizime dhe parime thelb\u00ebsore q\u00eb jan\u00eb ky\u00e7e p\u00ebr interpretimin korrekt t\u00eb marr\u00ebveshjeve tatimore dypal\u00ebshe. K\u00ebto parime krijojn\u00eb nj\u00eb gjuh\u00eb t\u00eb p\u00ebrbashk\u00ebt p\u00ebr profesionist\u00ebt tatimor\u00eb dhe bizneset, n\u00eb m\u00ebnyr\u00eb q\u00eb zbatimi i marr\u00ebveshjeve t\u00eb b\u00ebhet i nj\u00ebtrajtsh\u00ebm. M\u00eb posht\u00eb renditen kat\u00ebr konceptet kryesore t\u00eb trajtuara n\u00eb udh\u00ebzim:<\/p>\n\n\n\n P\u00ebr t\u00eb p\u00ebrcaktuar t\u00eb drejt\u00ebn e tatimit, fillimisht duhet p\u00ebrcaktuar rezidenca tatimore e personit (fizik ose juridik). Udh\u00ebzimi shpjegon termin \u201crezident\u201d sipas kuptimit tatimor: nj\u00eb person apo entitet konsiderohet Resident of a State <\/a>n\u00ebse plot\u00ebson kriteret ligjore t\u00eb atij shteti (p.sh. koh\u00ebq\u00ebndrimi, qendra e interesave jet\u00ebsore, vendinkorporimi etj.) Rezident\u00ebt tatimor\u00eb kan\u00eb detyrimin t\u00eb deklarojn\u00eb dhe paguajn\u00eb tatim n\u00eb shtetin e tyre mbi t\u00eb ardhurat e p\u00ebrgjithshme (global income), pra mbi t\u00eb gjitha t\u00eb ardhurat kudo n\u00eb bot\u00eb. N\u00eb praktik\u00eb, kjo do t\u00eb thot\u00eb se nj\u00eb biznes apo individ rezident n\u00eb Shqip\u00ebri tatohet n\u00eb Shqip\u00ebri p\u00ebr fitimet kudo q\u00eb realizohen (brenda apo jasht\u00eb vendit). Parimi i rezidenc\u00ebs p\u00ebrqendrohet te subjekti tatimpagues: n\u00ebse ai \u00ebsht\u00eb rezident i Shqip\u00ebris\u00eb, at\u00ebher\u00eb Shqip\u00ebria ka t\u00eb drejt\u00eb ta tatoj\u00eb for global revenues<\/a>, provided that there is no agreement that restricts these rights.<\/p>\n\n\n\n Ky parim plot\u00ebson parimin e rezidenc\u00ebs dhe fokusohet te vendndodhja e burimit nga vijn\u00eb t\u00eb ardhurat. Sipas parimit t\u00eb burimit, \u00e7do e ardhur apo fitim konsiderohet fillimisht e tatueshme n\u00eb shtetin ku ajo realizohet. Kjo vlen pavar\u00ebsisht n\u00ebse p\u00ebrfituesi i t\u00eb ardhur\u00ebs \u00ebsht\u00eb rezident diku tjet\u00ebr. Udh\u00ebzimi jep shembuj ilustrues: p.sh., t\u00eb ardhurat nga pasurit\u00eb e paluajtshme t\u00eb vendosura n\u00eb nj\u00eb shtet duhet t\u00eb tatohen n\u00eb at\u00eb shtet (vendi i pasuris\u00eb), pavar\u00ebsisht ku banon pronari. Po ashtu, n\u00ebse nj\u00eb artist i huaj jep nj\u00eb koncert n\u00eb Shqip\u00ebri dhe p\u00ebrfiton honorar, parimi i burimit k\u00ebrkon q\u00eb ky honorar t\u00eb tatohet n\u00eb Shqip\u00ebri (ku u realizua aktiviteti) edhe n\u00ebse artisti \u00ebsht\u00eb rezident tatimor diku tjet\u00ebr. Ky parim siguron q\u00eb shteti ku gjenerohet ekonomia (shitja, sh\u00ebrbimi, aktivi) merr pjes\u00ebn e vet t\u00eb tatimit. Kombinimi i parimit t\u00eb rezidenc\u00ebs dhe atij t\u00eb burimit n\u00eb legjislacionet e shumic\u00ebs s\u00eb vendeve \u00ebsht\u00eb pik\u00ebrisht arsyeja pse lind double taxation<\/a> when the entities operate cross-border.<\/p>\n\n\n\n Kur nj\u00eb person apo kompani \u00ebsht\u00eb rezident n\u00eb nj\u00eb shtet (dhe p\u00ebr rrjedhoj\u00eb i n\u00ebnshtrohet tatimit mbi t\u00eb ardhurat globale atje) por realizon t\u00eb ardhura edhe n\u00eb nj\u00eb shtet tjet\u00ebr (i cili i taton ato n\u00eb baz\u00eb t\u00eb burimit), mund t\u00eb ndodh\u00eb q\u00eb The same income being taxed twice<\/a> \u2013 nj\u00eb her\u00eb nga secili shtet. Udh\u00ebzimi thekson se tatimi i dyfisht\u00eb manifestohet tipikisht n\u00eb dy forma: (a) tatim i dyfisht\u00eb juridik, kur i nj\u00ebjti person tatohet dy her\u00eb p\u00ebr t\u00eb nj\u00ebjt\u00ebn t\u00eb ardhur, nj\u00eb her\u00eb si rezident dhe nj\u00eb her\u00eb n\u00eb shtetin e burimit; dhe (b) tatim i dyfisht\u00eb ekonomik, kur e nj\u00ebjta e ardhur tatohet te dy subjekte t\u00eb ndryshme (p.sh. fitimi i nj\u00eb kompanie tatohet dhe p\u00ebrs\u00ebri dividend\u00ebt e shp\u00ebrndar\u00eb tatohen te aksioner\u00ebt). <\/p>\n\n\n\n Also, legal double taxation can occur in the case of double residence \u2013 when two states, under the criteria of their laws, consider the same person to be a tax resident (e.g. an individual may simultaneously meet the residency criteria in both Albania and another country). In the absence of a resolution mechanism, a dual resident would be taxed fully in both jurisdictions.\u00a0DTAAs address precisely these situations by establishing rules on which state is considered the taxpayer's primary residence and how double taxation will be eliminated. <\/p>\n\n\n\n Typically, agreements provide that the source state either waives a portion of the tax (by reducing the withholding tax rate), or the state of residence gives the taxpayer a credit for the tax paid abroad, or exempts that income from domestic taxation. In both cases, the final result is that the taxpayer does not pay tax twice on the same income. The new guidance clearly presents these principles, making them understandable for its users.<\/p>\n<\/blockquote>\n\n\n\n Nj\u00eb nga kontributet m\u00eb t\u00eb r\u00ebnd\u00ebsishme t\u00eb udh\u00ebzimit \u00ebsht\u00eb shpjegimi i holl\u00ebsish\u00ebm i konceptit t\u00eb \u201cselis\u00eb s\u00eb p\u00ebrhershme\u201d sipas nenit 5 t\u00eb Modelit OECD<\/a> (also reflected in Article 5 of Law No. 29\/2023 \u201cFor Income Tax<\/a>\u201d). Selia e p\u00ebrhershme \u00ebsht\u00eb pika ky\u00e7e q\u00eb p\u00ebrcakton n\u00ebse nj\u00eb biznes jorezident ka prani t\u00eb mjaftueshme ekonomike n\u00eb Shqip\u00ebri q\u00eb t\u00eb tatohet k\u00ebtu p\u00ebr fitimet e atribuueshme asaj pranis\u00eb. Udh\u00ebzimi thekson se nj\u00eb shoq\u00ebri rezidente n\u00eb nj\u00eb shtet tjet\u00ebr mund t\u00eb tatohet n\u00eb Shqip\u00ebri vet\u00ebm n\u00ebse ka nj\u00eb seli t\u00eb p\u00ebrhershme n\u00eb Shqip\u00ebri dhe vet\u00ebm p\u00ebr t\u00eb ardhurat q\u00eb i atribuohen asaj selie P\u00ebrkufizimi klasik i SP-s\u00eb \u00ebsht\u00eb \u201cnj\u00eb vend i caktuar biznesi, p\u00ebrmes t\u00eb cilit nj\u00eb entitet i huaj ushtron aktivitetin e vet n\u00eb m\u00ebnyr\u00eb t\u00eb p\u00ebrhershme n\u00eb shtetin tjet\u00ebr\u201d. <\/p>\n\n\n\n This could be an office, branch, factory, workshop, construction site (for a determined period of time), etc. The instruction gives concrete examples: e.g., an Italian company performing maintenance services for medical equipment for a hospital in Albania, having regular staff and a warehouse of equipment on the hospital premises, will be considered to have established a permanent establishment in Albania. This implies that the profit attributable to the activity in Albania (e.g., services rendered to the hospital) will be taxed in Albania, while the rest of the foreign company's profit remains taxable only in its country of residence (Italy). <\/p>\n\n\n\n The OECD's concept protects both the Albanian tax administration (from foreign businesses operating here without registration) and foreign businesses (from unjustified taxation if their activity in Albania is peripheral or temporary). The guidance requires taxpayers to carefully assess their physical or economic presence in foreign countries to understand whether it constitutes a permanent establishment or not \u2013 a decision that then determines where profits will be taxed.<\/p>\n<\/blockquote>\n\n\n\n Besides these key concepts, Instruction no. 11 <\/a>trajton edhe \u00e7\u00ebshtje t\u00eb tjera t\u00eb p\u00ebrgjithshme si: p\u00ebrkufizimet e termeve t\u00eb p\u00ebrdorura shpesh n\u00eb marr\u00ebveshje (p.sh. \u201cperson\u201d, \u201centitet\u201d, \u201cautoritet kompetent\u201d), m\u00ebnyr\u00ebn si trajtohen kategorit\u00eb t\u00eb ndryshme t\u00eb t\u00eb ardhurave (t\u00eb ardhurat nga pun\u00ebsimi, pensionet, fitimet kapitale, etj., sipas neneve specifike t\u00eb modeleve t\u00eb marr\u00ebveshjeve), si dhe referenca ndaj Modelit Shqiptar t\u00eb Marr\u00ebveshjes p\u00ebr Shmangien e Tatimit t\u00eb Dyfisht\u00eb. Ky i fundit (Modeli shqiptar) \u00ebsht\u00eb p\u00ebrfshir\u00eb n\u00eb Aneksin 1 t\u00eb udh\u00ebzimit si dokument orientues p\u00ebr negociator\u00ebt kur Shqip\u00ebria lidh marr\u00ebveshje t\u00eb reja. Modeli bazohet kryesisht n\u00eb Modelin OECD, me p\u00ebrshtatjet e nevojshme p\u00ebr kontekstin e Shqip\u00ebris\u00eb.<\/p>\n\n\n\n With these basic principles and definitions, the guidance aims to provide both tax authorities and businesses and their advisors with a unified theoretical framework for consistently interpreting tax treaties. This is particularly important because, in the absence of guidance, the terms of the agreements could be interpreted differently by various taxpayers, leading to uncertainty and the risk of non-compliance.<\/p>\n<\/blockquote>\n\n\n\n Beyond definitions, Instruction no. 11\/2024 <\/a>vendos procedurat konkrete q\u00eb duhet t\u00eb ndjekin tatimpaguesit p\u00ebr t\u00eb zbatuar nj\u00eb marr\u00ebveshje t\u00eb shmangies s\u00eb tatimit t\u00eb dyfisht\u00eb n\u00eb praktik\u00eb. K\u00ebtu fokusi kryesor \u00ebsht\u00eb te tatimpaguesit rezident\u00eb n\u00eb Shqip\u00ebri (p.sh. bizneset shqiptare) q\u00eb kryejn\u00eb transaksione me jorezident\u00eb (biznese apo individ\u00eb t\u00eb huaj) dhe duan t\u00eb p\u00ebrfitojn\u00eb leht\u00ebsit\u00eb tatimore t\u00eb parashikuara nga nj\u00eb MSHTD e Shqip\u00ebris\u00eb me shtetin e tyre. Procedurat sigurojn\u00eb q\u00eb leht\u00ebsimi i tatimit (p.sh. mospagimi i tatimit n\u00eb burim ose aplikimi i nj\u00eb norme t\u00eb reduktuar sipas marr\u00ebveshjes) t\u00eb b\u00ebhet vet\u00ebm kur jan\u00eb plot\u00ebsuar kushtet dhe \u00ebsht\u00eb provuar me dokumentacion i rregullt e i plot\u00eb.<\/p>\n\n\n\n Udh\u00ebzimi p\u00ebrcakton se tatimpaguesi rezident n\u00eb Shqip\u00ebri ka p\u00ebrgjegj\u00ebsin\u00eb kryesore p\u00ebr zbatimin korrekt t\u00eb marr\u00ebveshjes dhe duhet t\u00eb njoftoj\u00eb administrat\u00ebn tatimore shqiptare p\u00ebr \u00e7do rast kur ai ka zbatuar dispozitat e nj\u00eb MSHTD-je. Kjo b\u00ebhet p\u00ebrmes dor\u00ebzimit (ngarkimit elektronik) t\u00eb nj\u00eb pakete dokumentesh justifikuese brenda afateve t\u00eb caktuara. Sipas nenit 115\/3 t\u00eb Ligjit Nr. 9920\/2008 \u201cFor Tax Procedures<\/a>\u201d, dokumentacioni duhet t\u00eb dor\u00ebzohet brenda vitit kalendarik pasues vitit kur u kryen transaksionet e tatueshme sipas marr\u00ebveshjes. Kjo do t\u00eb thot\u00eb, p.sh., p\u00ebr pagesat e kryera gjat\u00eb vitit 2024 me zbatim t\u00eb nj\u00eb MSHTD-je, dokumentet duhet t\u00eb dor\u00ebzohen brenda 31 dhjetorit 2025. <\/p>\n\n\n\n The Law \u201cOn Tax Procedures\u201d also provides for an administrative fine if the taxpayer fails to submit the documentation for implementing the MSHTD within the prescribed deadline. Currently, this fine is relatively modest (e.g., around 10,000 lek\u00eb for failure to notify on time), but the main risk is not so much the fine as the possibility of losing the right to relief. If the documents are missing, the administration may not recognize the preferential treatment and may demand the full tax as if the agreement had never been implemented. Therefore, it is vital that companies comply with these deadlines and requirements. The guidance makes it clear that notifications are classified by risk by a dedicated structure within the General Directorate of Taxes. Low-risk notifications (e.g., routine cases with proper documentation) are handled more simply, while those with higher risk (e.g., very large amounts, complex structures, offshore locations, etc.) are subject to in-depth analysis and may be subject to subsequent audits. This risk-focused approach is in line with best practices, as it concentrates the administration's resources where potential abuses exist, while routine cases are simply monitored minimally.<\/p>\n\n\n\n Deri n\u00eb krijimin e plot\u00eb t\u00eb modulit elektronik p\u00ebr k\u00ebt\u00eb proces, administrata tatimore ka pranuar edhe dor\u00ebzimin e dokumentacionit n\u00eb form\u00eb hardcopy (let\u00ebr) ose me e-mail. Udh\u00ebzimi parashikoi nj\u00eb periudh\u00eb tranzitore ku formulari i aplikimit (Aneksi 2) mund t\u00eb dor\u00ebzohej i n\u00ebnshkruar n\u00eb let\u00ebr, derisa t\u00eb mund\u00ebsohej plot\u00ebsisht formulari online (i ashtuquajturi \u201cAneksi 4\u201d). Me zhvillimet e fundit, pritet q\u00eb e gjith\u00eb procedura t\u00eb kryhet 100% online, \u00e7ka do t\u00eb thot\u00eb eliminim i dokumenteve n\u00eb let\u00ebr dhe thjesht\u00ebzim burokracie.<\/p>\n<\/blockquote>\n\n\n\n Also, the guidance (at point 4) describes the procedure for issuing the tax residency certificate to taxpayers resident in Albania who need one to prove their status in other states. This is the other side of the coin: when an Albanian business has income in a foreign country and wants to apply the treaty there (to avoid double taxation), it is usually required to submit a certificate of residence issued by the Albanian authorities. The guidance stipulates that the General Directorate of Taxes issues residence certificates for natural or legal persons resident in Albania within a specified timeframe after the applicant submits the application and supporting documents. The certificate, signed and stamped by the DPT, enables the taxpayer to prove their status as a resident of Albania to foreign authorities and thus claim the benefits of the relevant double taxation treaty. This procedure is purely administrative but very important, and in practice the DPT has proven efficient in issuing them, often within a few days.<\/p>\n\n\n\n In conclusion, section 11 of the guidance procedures establishes a clear framework of action: an Albanian taxpayer who wishes to avoid double taxation must follow the \u201cdeclare and document\u201d rules. This increases legal certainty for businesses (they know exactly what is required of them) and at the same time gives the administration the tools to monitor and control compliance, without hindering the flow of business with lengthy approval procedures.<\/p>\n\n\n\n As mentioned, basic instruction no. 11 has undergone a supplementary change in July 2025. Instruction No. 15, dated July 8, 2025<\/a>. was approved with the aim of further improving and clarifying certain implementation procedures of the MSHTD. This normative act is titled \u201cOn an amendment to the Minister of Finance's Instruction no. 11, dated 23.7.2024...\u201d, implying that it does not entirely replace the existing instruction, but modifies or adds specific points to it. What are these changes, in essence, and why were they made? Below we present the main points:<\/p>\n\n\n\n One of the main reasons for the change was the practical situation with the electronic tax system. Instruction no. 11 foresaw the transition to online declaration of documentation, but by mid-2025, the electronic portal still did not have a fully functional module for this purpose. As a solution, Instruction no. 15 confirmed that procedures for applying for MSHTD facilities will continue as before until the electronic system is fully operational. In other words, taxpayers must continue to submit the form (Annex 2) and supporting documents in the specified manner (even if this means uploading scans or physical submission) without waiting for a fully automated process. The goal was to avoid a vacuum or confusion: so that businesses do not stop implementing agreements due to uncertainty about the declaration method.<\/p>\n\n\n\n Ndryshimi gjithashtu i hapi rrug\u00eb futjes s\u00eb nj\u00eb formulari elektronik t\u00eb posa\u00e7\u00ebm (t\u00eb quajtur provizorisht Aneksi 4). Ky formular pritet t\u00eb z\u00ebvend\u00ebsoj\u00eb p\u00ebrfundimisht formularin aktual (Aneksin 2) n\u00eb momentin kur e-filing t\u00eb jet\u00eb gati. Udh\u00ebzimi nr.15 autorizon administrat\u00ebn tatimore t\u00eb b\u00ebj\u00eb kalimin n\u00eb formatin e ri pa pasur nevoj\u00eb p\u00ebr nj\u00eb udh\u00ebzim tjet\u00ebr, pra e p\u00ebrfshin brenda korniz\u00ebs ligjore paraprakisht. Kjo do t\u00eb mund\u00ebsoj\u00eb nj\u00eb tranzicion m\u00eb t\u00eb shpejt\u00eb drejt deklarimit plot\u00ebsisht dixhital. Pasi t\u00eb aktivizohet ky modul, pritet q\u00eb tatimpaguesit thjesht t\u00eb plot\u00ebsojn\u00eb online t\u00eb gjitha informacionet (praktikisht duke z\u00ebvend\u00ebsuar dor\u00ebzimin e dokumenteve PDF me plot\u00ebsimin e rubrikave n\u00eb portalin tatimor). Kjo risi do t\u00eb leht\u00ebsoj\u00eb ndjesh\u00ebm pun\u00ebn si p\u00ebr bizneset ashtu dhe p\u00ebr vet\u00eb DPT (m\u00eb pak dokumente p\u00ebr t\u2019u verifikuar manualisht dhe mund\u00ebsi procesimi e analizimi automatik t\u00eb t\u00eb dh\u00ebnave).<\/p>\n\n\n\n Duke qen\u00eb se udh\u00ebzimi nr.11 hyri n\u00eb fuqi n\u00eb gjysm\u00ebn e dyt\u00eb t\u00eb 2024, u shfaq nevoja t\u00eb sqarohen disa situata kalimtare. P\u00ebr shembull, p\u00ebr faturat e l\u00ebshuara para hyrjes n\u00eb fuqi t\u00eb udh\u00ebzimit (p.sh. dhjetor 2023) por t\u00eb paguara m\u00eb von\u00eb, si duhej vepruar? Me ndryshimin e b\u00ebr\u00eb, u sanksionua q\u00eb faturat e dat\u00ebs deri m\u00eb 31.12.2023 trajtohen sipas procedurave t\u00eb vjetra (udh\u00ebzimit t\u00eb shfuqizuar nr.6\/2004), nd\u00ebrsa vet\u00ebm faturat e reja (nga 1.1.2024) i n\u00ebnshtrohen rregullave t\u00eb reja. Ky sqarim ishte i domosdosh\u00ebm p\u00ebr t\u00eb shmangur paqart\u00ebsit\u00eb dhe mosmarr\u00ebveshjet midis tatimpaguesve dhe inspektor\u00ebve mbi interpretimin e dispozitave tranzitore.<\/p>\n\n\n\n During the 2024-2025 period, new laws have also come into effect (e.g., the new Law no. 29\/2023 \u201cFor Income Tax<\/a>\u201dwhich replaced the law of the year 1998<\/a>). Udh\u00ebzimi nr.15 b\u00ebn disa ndryshime referencash ligjore brenda tekstit, p\u00ebr t\u2019i p\u00ebrshtatur me terminologjin\u00eb dhe nenet e ligjit t\u00eb ri. P\u00ebr shembull, n\u00ebse udh\u00ebzimi i 2024 referonte nenin e vjet\u00ebr p\u00ebr selin\u00eb e p\u00ebrhershme, tani referohet neni 5 i ligjit t\u00eb ri 29\/2023. K\u00ebto jan\u00eb modifikime teknike, por t\u00eb r\u00ebnd\u00ebsishme p\u00ebr koherenc\u00ebn e kuadrit ligjor.<\/p>\n\n\n\n N\u00eb vet\u00eb udh\u00ebzimin nr.11 ishte bashk\u00eblidhur n\u00eb Aneks nj\u00eb list\u00eb e marr\u00ebveshjeve tatimore n\u00eb fuqi. Me hyrjen n\u00eb fuqi t\u00eb marr\u00ebveshjeve t\u00eb reja (si p.sh. me Kosov\u00ebn \u2013 e n\u00ebnshkruar n\u00eb tetor 2022 dhe e ratifikuar n\u00eb 2023), ishte e nevojshme t\u00eb p\u00ebrfshiheshin edhe k\u00ebto n\u00eb list\u00ebn e aneksit. Udh\u00ebzimi nr.15 pasqyroi list\u00ebn e MSHTD-ve m\u00eb t\u00eb p\u00ebrdit\u00ebsuar, duke shtuar marr\u00ebveshjet e reja t\u00eb hyr\u00eb n\u00eb fuqi gjat\u00eb 2022-2025 (p.sh. me Kosov\u00ebn, me Emiratet e Bashkuara Arabe, me Egjiptin, Izraelin, etj., t\u00eb cilat do t\u2019i diskutojm\u00eb n\u00eb seksionin vijues). N\u00eb k\u00ebt\u00eb m\u00ebnyr\u00eb, p\u00ebrdoruesit e udh\u00ebzimit (inspektor\u00ebt tatimor\u00eb dhe subjektet) kan\u00eb n\u00eb nj\u00eb vend t\u00eb vet\u00ebm t\u00eb gjitha shtetet me t\u00eb cilat Shqip\u00ebria ka traktate tatimore aktive.<\/p>\n\n\n\n In general, the changes made with Instruction no. 15\/2025 do not overturn the basic philosophy of the process, but enrich it and make it more practical. They are a direct response to situations that arose in the first months of the implementation of the original instruction. This shows a dynamic approach from the Ministry of Finance and the State Procurement Office: after noticing the need for further clarifications in the field, they reacted with regulatory changes. Another benefit of this latest change is the increased confidence in businesses that the authorities are monitoring the implementation and are ready to further perfect the framework, which encourages better compliance with the rules.<\/p>\n<\/blockquote>\n\n\n\n Finally, it is worth mentioning that Directive No. 15\/2025 takes effect immediately upon publication in the Official Gazette, just like any other directive, and its effects are retroactive (i.e., for all declarations after July 2025). Notifications made before this date (under the rules of the original guidance) will continue to be handled according to the provisions in force at the time of submission, while after the amendments take effect, any notification or procedure will be carried out under the new unified framework. With this, the regulatory framework for implementing MSHTDs can be considered complete and stabilized (at least until future changes dictated by necessity or international developments).<\/p>\n\n\n\n How has the implementation of MSHTDs worked in Albania so far? What challenges has it encountered, and what has been lacking? <\/p>\n<\/blockquote>\n\n\n\n To answer this question, we need to take a brief historical look. Albania signed its first double taxation avoidance agreements in the 1990s and early 2000s, as part of the country's opening to foreign investment. To implement them, Instruction no. 6 was issued in 2004, which, for its time, created a basic mechanism. That instruction stipulated that the General Directorate of Taxes (GDT) was the competent authority for interpreting the agreements and outlined some procedures (at that time, mainly manual).<\/p>\n\n\n\n However, two decades of practice revealed several key shortcomings:<\/p>\n\n\n\n Under the old rules, Albanian businesses often had to apply in advance to the tax administration for approval to benefit from preferential treaty rates. This involved physically submitting residence certificates and other documents to tax offices, which then had to be reviewed by officials and approved. In practice, this took time and often caused delays. Some businesses preferred not to take the initiative to apply for relief at all, choosing the safer route of paying the full tax (to then deal with refunds or credits, which was also complicated). Therefore, the relief was theoretically available, but in practice it was utilized less than expected due to procedural barriers.<\/p>\n\n\n\n Until recently, communication with the tax administration in this regard has been traditional (on paper). There was no online platform where the entire process could be carried out. This not only made the process slow but also brought uncertainty (e.g., documents could easily be missing or \u201clost\u201d in correspondence). The lack of a centralized database with applied cases made it difficult for the DPT to conduct general analyses on the use of agreements.<\/p>\n\n\n\n Shum\u00eb biznese t\u00eb vogla dhe t\u00eb mesme nuk ishin plot\u00ebsisht t\u00eb vet\u00ebdijshme p\u00ebr ekzistenc\u00ebn ose m\u00ebnyr\u00ebn e p\u00ebrdorimit t\u00eb marr\u00ebveshjeve tatimore. Kishte raste kur nj\u00eb kompani paguante tatim n\u00eb burim p\u00ebr nj\u00eb pages\u00eb jasht\u00eb vendit, edhe pse ekzistonte nj\u00eb marr\u00ebveshje q\u00eb e eliminonte ose ulte at\u00eb tatim, thjesht sepse nuk e dinte procedur\u00ebn si t\u00eb vepronte. Nga ana tjet\u00ebr, kishte edhe raste t\u00eb interpretimeve subjektive ose jokonsistente nga inspektor\u00eb t\u00eb ndrysh\u00ebm tatimor\u00eb, p\u00ebr shkak t\u00eb munges\u00ebs s\u00eb udh\u00ebzimeve t\u00eb detajuara ligjore. Deri para udh\u00ebzimit nr.11, nuk kishte nj\u00eb komentim zyrtar n\u00eb shqip t\u00eb termave t\u00eb traktateve \u2013 zakonisht konsultoheshin modelet OECD<\/a> apple United Nations<\/a>, por jo \u00e7do profesionist kishte akses ose njohuri t\u00eb mjaftueshme mbi to. Kjo krijonte terren p\u00ebr keqinterpretime. P\u00ebr shembull, koncepti i \u201crezidentit\u201d apo \u201cselis\u00eb s\u00eb p\u00ebrhershme\u201d mund t\u00eb kuptohej gabim, duke sjell\u00eb ose mosp\u00ebrfitim kur duhej, ose p\u00ebrfitim t\u00eb pajustifikuar.<\/p>\n\n\n\n For Albanian businesses operating beyond borders \u2013 whether by exporting goods or services, investing in foreign subsidiaries, or receiving investments and financing from abroad \u2013 double taxation avoidance agreements are vital. They provide a protective \u201cumbrella\u201d against double taxation, as well as a clear legal framework for how and where each type of income will be taxed. Below we list some of the main reasons why DTAAs are important:<\/p>\n\n\n\n Ky \u00ebsht\u00eb funksioni baz\u00eb. Pa traktate, nj\u00eb kompani shqiptare q\u00eb, fjala vjen, fiton t\u00eb ardhura n\u00eb nj\u00eb vend tjet\u00ebr (p.sh. dividend nga nj\u00eb filial n\u00eb Kosov\u00eb, apo fitim nga nj\u00eb kontrat\u00eb n\u00eb Gjermani) do t\u00eb tatohej edhe n\u00eb vendin tjet\u00ebr, edhe n\u00eb Shqip\u00ebri p\u00ebr t\u00eb nj\u00ebjt\u00ebn shum\u00eb. Kjo mund ta b\u00ebj\u00eb investimin ose transaksionin t\u00eb paleverdissh\u00ebm ekonomikisht. Fal\u00eb MSHTD-ve, nd\u00ebrkoh\u00eb, vendet bien dakord se si ta ndajn\u00eb tatimin: ose nj\u00ebri heq dor\u00eb nga tatimi, ose t\u00eb dy e ulin barr\u00ebn dhe e ndajn\u00eb midis tyre. <\/p>\n\n\n\n P\u00ebr shembull, n\u00eb shum\u00eb marr\u00ebveshje, dividend\u00ebt q\u00eb nj\u00eb kompani bij\u00eb n\u00eb shtetin A i paguan kompanis\u00eb m\u00ebm\u00eb n\u00eb shtetin B tatohen me nj\u00eb norm\u00eb t\u00eb reduktuar (p.sh. 5%) n\u00eb shtetin A (krahasuar me norm\u00ebn e brendshme p.sh. 15%), dhe pastaj shteti B e p\u00ebrjashton krejt ose i jep kredi kompanis\u00eb m\u00ebm\u00eb p\u00ebr tatimin 5% t\u00eb paguar jasht\u00eb. N\u00eb k\u00ebt\u00eb rast kompania m\u00ebm\u00eb n\u00eb total paguan vet\u00ebm nj\u00eb her\u00eb tatim (efektivisht at\u00eb 5%), n\u00eb vend q\u00eb t\u00eb paguante 15% jasht\u00eb + 15% brenda (q\u00eb do \u00e7onte n\u00eb ~28% efektiv n\u00ebse nuk do ishte marr\u00ebveshja). N\u00eb k\u00ebt\u00eb m\u00ebnyr\u00eb, kostoja tatimore ulet ndjesh\u00ebm dhe rritet leverdia e investimit.<\/p>\n<\/blockquote>\n\n\n\n An Albanian business that knows its profits from abroad will either be credited in Albania or exempted, can offer more competitive prices or develop more aggressive expansion strategies. If, for example, an Albanian engineering company knows that the services it will export to country X will not be taxed twice, it can enter that market with more confidence and offer rates that reflect only the tax of one country. Conversely, tax uncertainty would make it calculate a \u201csecurity premium,\u201d i.e., a higher price, which could penalize it in international tenders.<\/p>\n\n\n\n When foreign investors evaluate a country, they also pay attention to that country's network of tax agreements. Since the 1990s, Albania has entered into agreements with most major investors (such as Italy, Greece, Turkey, EU countries, etc.), making it more attractive to them. This is because an investor, for example from France, knows that his profit in Albania will not be taxed twice (once in Albania and then again in France), but only once \u2013 depending on the case, either only in Albania with a credit in France, or with a low rate here and the rest there. This avoidance of double taxation is often formalized in investment agreements: the investor demands guarantees that they will have the protection of the MSHTD for repatriating profits, paying interest, etc. Thus,\u00a0MSHTDs encourage capital inflows into the country by allaying fears of excessive taxation.<\/p>\n\n\n\n Vlen t\u00eb theksohet se marr\u00ebveshjet nuk kan\u00eb si q\u00ebllim vet\u00ebm shmangien e tatimit t\u00eb dyfisht\u00eb, por edhe parandalimin e evazionit fiskal (kjo edhe n\u00eb titullin e tyre). Dispozita t\u00eb ve\u00e7anta n\u00eb to (si p.sh. neni i shk\u00ebmbimit t\u00eb informacionit) i lejojn\u00eb administratat tatimore t\u00eb bashk\u00ebpunojn\u00eb p\u00ebr t\u00eb kapur ata q\u00eb mundohen t\u00eb fshehin t\u00eb ardhura n\u00ebp\u00ebr kufij. P\u00ebr bizneset e ndershme, kjo sigurisht \u00ebsht\u00eb di\u00e7ka pozitive sepse krijon nj\u00eb fusht\u00eb loje t\u00eb barabart\u00eb ku konkurrent\u00ebt e pandersh\u00ebm kan\u00eb m\u00eb pak hap\u00ebsir\u00eb t\u00eb shmangin tatimet. N\u00eb vitet e fundit, sidomos me iniciativat globale si BEPS<\/a> (Base Erosion and Profit Shifting) t\u00eb OECD\/G20, traktatet tatimore po shihen edhe si mjet kund\u00ebr planifikimit agresiv tatimor. Edhe Shqip\u00ebria, p\u00ebrmes an\u00ebtar\u00ebsimit n\u00eb Forumet e BEPS-it dhe ratifikimit t\u00eb Konvent\u00ebs Shum\u00ebpal\u00ebshe (MLI<\/a>) n\u00eb 2020, ka treguar angazhimin e saj n\u00eb k\u00ebt\u00eb drejtim (m\u00eb shum\u00eb mbi k\u00ebt\u00eb n\u00eb seksionin e rekomandimeve).<\/p>\n\n\n\n Marr\u00ebveshjet p\u00ebrfshijn\u00eb shpesh nj\u00eb procedur\u00eb t\u00eb quajtur Procedura e Mir\u00ebkuptimit t\u00eb Nd\u00ebrsjell\u00eb (Mutual Agreement Procedure<\/a>), where the tax authorities of both countries consult to resolve specific cases of double taxation that may arise or the interpretation of the treaty. For businesses, this means that if they find themselves in a situation where it appears that both countries are claiming tax, they have a diplomatic-legal mechanism for resolution without resorting to private arbitration. <\/p>\n\n\n\n P.sh., n\u00ebse nj\u00eb person konsiderohet rezident nga t\u00eb dy vendet, autoritetet e atyre vendeve mund t\u00eb bien dakord se ku duhet konsideruar rezident kryesor sipas rregullave t\u00eb traktatit, duke zgjidhur dilemat. Kjo siguron q\u00eb bizneset t\u00eb mos bien pre e \u201cloj\u00ebs ping-pong\u201d mes dy administratave, por t\u00eb ken\u00eb nj\u00eb z\u00eb t\u00eb unifikuar mbi detyrimet e tyre.<\/p>\n<\/blockquote>\n\n\n\n N\u00eb kontekstin shqiptar, r\u00ebnd\u00ebsia e MSHTD-ve v\u00ebrehet edhe nga profili i kompanive q\u00eb i p\u00ebrdorin. Jan\u00eb kryesisht bizneset e m\u00ebdha dhe t\u00eb mesme ato q\u00eb kan\u00eb transaksione nd\u00ebrkufitare \u2013 si kompanit\u00eb prodhuese q\u00eb eksportojn\u00eb, kompanit\u00eb e nd\u00ebrtimit\/infrastruktur\u00ebs q\u00eb marrin konsulenc\u00eb nga specialist\u00eb t\u00eb huaj, bankat e lidhura me grupe nd\u00ebrkomb\u00ebtare (p.sh. q\u00eb paguajn\u00eb interesa dhe divident\u00eb jasht\u00eb), kompani IT q\u00eb marrin sh\u00ebrbime cloud nga jasht\u00eb, etj. P\u00ebr t\u00eb gjitha k\u00ebto, aplikimi i traktateve mund t\u00eb kursej\u00eb shuma t\u00eb konsiderueshme parash. Por edhe p\u00ebr individ\u00eb t\u00eb caktuar, p.sh. profesionist\u00eb shqiptar\u00eb q\u00eb punojn\u00eb si t\u00eb pavarur p\u00ebr klient\u00eb jasht\u00eb, marr\u00ebveshjet mund t\u00eb shmangin tatimin e dyfisht\u00eb t\u00eb t\u00eb ardhurave t\u00eb tyre personale. <\/p>\n\n\n\n A typical case: an Albanian consultant works 4-5 months a year in an EU country; the treaty may stipulate that if they do not exceed 183 days there and their salary is not paid by a resident of that country, they are not taxed there \u2013 thus, they are only taxed in Albania as a resident, avoiding double taxation).<\/p>\n<\/blockquote>\n\n\n\n Another aspect is that double taxation agreements are closely linked to economic and diplomatic relations. Albania has prioritized negotiations with states with which it has the highest trade exchanges or mutual investment interest. This is why, for example, the treaties with Italy, Greece, Turkey, North Macedonia, Kosovo, etc., are among the earliest. In fact, the agreement with Kosovo had long been a request of the business community, but was finalized relatively late (signed in 2022, entered into force in 2023). \u2013 however, now that it is in force, it is expected to give a positive boost to bilateral trade and investments between the two countries. An Albanian investor who opens a company in Kosovo now knows that his profits will not be taxed twice, and vice versa for Kosovars in Albania. Likewise, the new agreement with the United Arab Emirates (entered into force in 2019) was important for encouraging Emirati investments in strategic sectors in Albania (e.g., the Port of Durr\u00ebs, energy, tourism).<\/p>\n\n\n\n In conclusion, Double Taxation Treaties are a necessary financial infrastructure for businesses in a globalized world. They reduce the cost of doing international business, increase legal certainty, and strengthen cooperation between countries. For a small country like Albania, which wants to attract foreign capital and encourage its own companies to broaden their horizons, these agreements are both a competitive advantage and a necessity.<\/p>\n\n\n\n Since 1993, when the first tax agreement (with Poland) was ratified, Albania has continuously expanded its network of treaties. Currently (2025), our country has over 40 double taxation avoidance treaties ratified and in force with states from around the world. boot<\/a>. <\/p>\n\n\n\n Shqip\u00ebria ka MSHTD me pothuajse t\u00eb gjitha vendet kryesore evropiane. K\u00ebtu p\u00ebrfshihen Italia (n\u00eb fuqi prej 2000), Greqia (2001), Gjermania (2012), Franca(n\u00ebnshkruar m\u00eb 2021, tashm\u00eb e ratifikuar), Britania e Madhe (2014), Austria (1993), Zvicra (2000), Suedia (2004), Norvegjia (2009), Finlanda (ratifikuar ~2018), Danimarka (mungon marr\u00ebveshje e drejtp\u00ebrdrejt\u00eb deri tani), Belgjika (hyr\u00eb n\u00eb fuqi rishtazi ~2022), Holanda(1999), Spanja (2011), Portugalia (ende pa marr\u00ebveshje dypal\u00ebshe), Polonia (1995)l<\/a>, Rumania (1995), Hungaria(1996) Bullgaria (1999), Kroacia (1999), Sllovenia (2005), Sllovakia (2016), \u00c7ekia (1997), Moldavia (2005), si dhe vendet e ish-Jugosllavis\u00eb: Serbia dhe Mali i Zi (marr\u00ebveshje e trash\u00ebguar q\u00eb daton nga 2004, e cila vazhdon t\u00eb zbatohet me secilin shtet pas pavar\u00ebsis\u00eb), Maqedonia e Veriut (1999), Bosnje-Hercegovina (ratifikuar dhe hyr\u00eb n\u00eb fuqi ~2022), dhe si e fundit Kosova (2023). K\u00ebto marr\u00ebveshje evropiane mbulojn\u00eb pjes\u00ebn d\u00ebrrmuese t\u00eb shk\u00ebmbimeve tregtare e investimeve t\u00eb Shqip\u00ebris\u00eb. P\u00ebrjashtime t\u00eb pakta mbeten (p.sh. me Irland\u00ebn ka marr\u00ebveshje, por me Island\u00ebn gjithashtu; nd\u00ebrkoh\u00eb, me shtete shum\u00eb t\u00eb vogla si San Marino apo Lihtenshtejn s\u2019ka traktate tatimore, por k\u00ebto kan\u00eb ndikim t\u00eb kufizuar praktik).<\/p>\n\n\n\n Vlen t\u00eb vihet n\u00eb dukje se Shqip\u00ebria nuk ka ende marr\u00ebveshje tatimore me Shtetet e Bashkuara t\u00eb Amerik\u00ebs. Edhe pse ka pasur diskutime dhe d\u00ebshir\u00eb reciproke, nj\u00eb traktat me SHBA-n\u00eb s\u2019\u00ebsht\u00eb materializuar (SHBA p\u00ebrgjith\u00ebsisht i lidh traktatet tatimore me kujdes dhe me pak vende m\u00eb t\u00eb vogla). Gjithsesi, investimet amerikane n\u00eb Shqip\u00ebri (p.sh. n\u00eb sektorin bankar apo energjetik) shpesh jan\u00eb strukturuar p\u00ebrmes deg\u00ebve evropiane t\u00eb korporatave amerikane, duke shfryt\u00ebzuar k\u00ebshtu marr\u00ebveshjet q\u00eb Shqip\u00ebria ka me vendet evropiane. Sa i takon vendeve t\u00eb Amerik\u00ebs s\u00eb Veriut, Shqip\u00ebria ka n\u00ebnshkruar n\u00eb 2021 nj\u00eb marr\u00ebveshje me Kanadan\u00eb, por ende nuk ka hyr\u00eb n\u00eb fuqi (n\u00eb pritje t\u00eb ratifikimit nga pala kanadeze). Me shtetet e Amerik\u00ebs Latine nuk kemi marr\u00ebveshje tatimore dypal\u00ebshe, gj\u00eb q\u00eb reflekton shk\u00ebmbimet e pakta ekonomike me to.<\/p>\n\n\n\n Shqip\u00ebria ka nj\u00eb num\u00ebr t\u00eb konsideruesh\u00ebm traktatesh n\u00eb Azi. Nd\u00ebr m\u00eb t\u00eb r\u00ebnd\u00ebsishmet jan\u00eb me Kin\u00ebn (1994, e rinegociuar m\u00eb 2011), me Turqin\u00eb (1997), me Indin\u00eb (2013, ende jo n\u00eb fuqi deri von\u00eb p\u00ebr shkak t\u00eb procedurave \u2013 u ratifikua nga Shqip\u00ebria n\u00eb 2013, dhe hyri n\u00eb fuqi pas shk\u00ebmbimit t\u00eb notave n\u00eb 2014), me Japonin\u00eb (asnj\u00eb marr\u00ebveshje ende, por \u00ebsht\u00eb n\u00ebnshkruar nj\u00eb Traktat p\u00ebr Mbrojtjen e Investimeve i cili indirekt shton disiplina fiskale), me Koren\u00eb e Jugut (2006), me Malajzin\u00eb (1995), me Singaporin(2012), me Emiratet e Bashkuara Arabe (2014, hyri n\u00eb fuqi 2014), me Kuvajtin (2014), me Katarin(2013), me Arabin\u00eb Saudite (2019), me Izraelin(2021) me Azerbajxhanin (2010) dhe Xhorxhin\u00eb (2012). K\u00ebto traktate ndihmojn\u00eb sidomos n\u00eb sektorin e tregtis\u00eb s\u00eb hidrokarbureve (p.sh. investitor\u00ebt nga Lindja e Mesme) dhe n\u00eb nxitjen e bashk\u00ebpunimit ekonomik me vendet aziatike n\u00eb rritje. Nd\u00ebr vendet e rajonit Azi-Paq\u00ebsor, Australia dhe Zelanda e Re mbeten pa marr\u00ebveshje me Shqip\u00ebrin\u00eb, por impakti i k\u00ebsaj mungese \u00ebsht\u00eb i vog\u00ebl aktualisht.<\/p>\n\n\n\n Marr\u00ebveshja kryesore n\u00eb k\u00ebt\u00eb kontinent \u00ebsht\u00eb me Egjiptin (2010, hyri n\u00eb fuqi n\u00eb 2011). Egjipti \u00ebsht\u00eb nj\u00eb partner i moderuar tregtar, por marr\u00ebveshja ka r\u00ebnd\u00ebsi gjeostrategjike. Me vende t\u00eb tjera afrikane (p.sh. Afrika e Jugut, Nigeria) nuk ka ende traktate, megjith\u00ebse mund\u00ebsit\u00eb e ardhshme investuese mund ta b\u00ebjn\u00eb t\u00eb d\u00ebshirueshme nisjen e tyre.<\/p>\n\n\n\nZhvillimet<\/h3>\n\n\n\n
Content of Directive No. 11 (07.23.2024) and Key Principles<\/h2>\n\n\n\n
The principle of tax residency<\/strong><\/h3>\n\n\n\n
The principle of the source of income<\/strong><\/h3>\n\n\n\n
The concept of double taxation<\/strong><\/h3>\n\n\n\n
\n
Permanent Set (PS)<\/strong><\/h3>\n\n\n\n
Definition<\/h3>\n\n\n\n
\n
N\u00eb v\u00ebmendje<\/h3>\n\n\n\n
\n
Implementation Procedures for Agreements and Required Documentation<\/h2>\n\n\n\n
Implementimi<\/h3>\n\n\n\n
Key Points to Note<\/h3>\n\n\n\n
\n
Latest Changes: Directive No. 15 (07.08.2025) and Justification<\/h2>\n\n\n\n
Extension of the transitional period and transition to the electronic system<\/strong><\/h3>\n\n\n\n
Formalization of the new electronic form (Annex 4)<\/strong><\/h3>\n\n\n\n
Clarifications of deadlines for specific cases<\/strong><\/h3>\n\n\n\n
Consolidation of the legal framework with other fiscal changes<\/strong><\/h3>\n\n\n\n
Update of the list of agreements and annexes<\/strong><\/h3>\n\n\n\n
\n
The Implementation of Double Taxation Agreements in Albania: Experiences and Lessons<\/h2>\n\n\n\n
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Slow and bureaucratic procedures<\/h3>\n\n\n\n
Lack of computerization<\/h3>\n\n\n\n
Failure to comply and inconsistent interpretation<\/h3>\n\n\n\n
The Importance of Double Taxation Agreements for Albanian Businesses with International Activity<\/h2>\n\n\n\n
Elimination of double taxation<\/strong><\/h3>\n\n\n\n
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Increasing the international competitiveness of Albanian businesses<\/strong><\/h3>\n\n\n\n
Attraction of foreign investments and partnerships<\/strong><\/h3>\n\n\n\n
Preventing international tax evasion<\/strong><\/h3>\n\n\n\n
International tax dispute resolution<\/strong><\/h3>\n\n\n\n
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Current Panorama: Updated List of Albania's Tax Agreements<\/h2>\n\n\n\n
Europe (BE and the Balkans)<\/strong><\/h3>\n\n\n\n
North and South America<\/strong><\/h3>\n\n\n\n
Asia and Oceania<\/strong><\/h3>\n\n\n\n
Africa<\/strong><\/h3>\n\n\n\n
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