Refund of Prepaid Tax Installments and Legal Updates for Freelance Professionals ​     The Ministry of Finance has updated Instruction No. 26, dated September 8, 2023, regarding income tax, clarifying the tax treatment of self-employed individuals who derive the majority of their income from one or a few clients. This update aligns the reporting system more closely with standard … Read More

Major Tax Shift in Albania: When Does Self-Employment Become Employment? ​     The Ministry of Finance has updated Instruction No. 26, dated September 8, 2023, regarding income tax, clarifying the tax treatment of self-employed individuals who derive the majority of their income from one or a few clients. This update aligns the reporting system more closely with standard accounting … Read More

LEGAL TAX CHANGES FROM JANUARY 1, 2025       Personal Income Tax Law no. 29/2023 “On Income Tax,” as amended, came into force on 18.05.2023 and has extended its effects since January 1, 2024, with some exceptions, which will be presented in this informational material. This law aims to establish rules regarding:a) income tax for individuals and entities;b) income … Read More

Implementation of the New Income Tax Law: Requirements for Employees and the Declaration of Personal Status       The recently enacted Income Tax Law No. 29/2023 requires employees to submit a Declaration of Personal Status, which serves to determine the application of deductions from the taxable base as stipulated under Articles 20 and 22 of the law. While this … Read More

Improvements and New Amendments to the Legal Audit Law       The latest amendments to the legal audit law represent a significant step toward modernizing practices and aligning with international standards. This law introduces a stronger focus on transparency, professionalism, and harmonization with global requirements, impacting several key areas of this profession. Importance of Legal Amendments The recent review … Read More

Advantages of Doing Business in Albania Compared to the Balkans       Albania provides various advantages for foreign investors and businesses, including a favorable tax regime, affordable labor costs, and efficient processes for business registration. Below is a detailed comparison of Albania’s economic and tax environment with other countries in the Balkan region. Value Added Tax (VAT) In Albania: … Read More

Understanding Salary Contributions and Taxes in Albania       Understanding Salary Contributions and Taxes in Albania In Albania, wages are the primary source of income for most individuals, accounting for over 60% of household earnings. For 2024, the minimum wage is set at 40,000 ALL, which forms the basis for calculating taxes and social contributions. Social Security and Healthcare … Read More

Albanian Investment Funds Continue Recovery, Posting 23% Year-Over-Year Growth in NAV by End-March       The investment funds market has seen a steady recovery in the first quarter of this year, with net assets reaching ALL 51.7 billion. This marks a 2.8% increase from the end of last year and a significant 23% rise compared to the same period … Read More

All Entities Must Declare Property Ownership Status in e-Filing for Economic Activity Locations by October 20         The Tax Administration urges all taxpayers to declare in e-Filing by October 20th the ownership status of their business locations and submit verifying documents (such as property deeds or lease agreements). This information is crucial for the accurate calculation of … Read More

Free Professions Granted Tax Exemption Until 2029 Following Court Reversal      At 18:00 yesterday, President Holta Zaçaj of the Constitutional Court announced a significant decision regarding freelancers’ taxation. The Court unanimously decided to annul Article 69, point 10 of the law, which imposed a 15% tax rate on freelancers. President Zaçaj stated that this tax measure was deemed disproportionate … Read More