- The normative act for several amendments to the income tax law
- Draft law for several additions and amendments to the social insurance law
- Draft law for several additions and amendments to the local tax system law.
The normative act for several amendments to the income tax law.
The Council of Ministers has approved normative act no. 2, dated 7.6.2023, “On several additions to Law no. 29/2023, “On income tax,” which aims to reduce financial costs for exporters of goods under the active processing regime, affected by the decline in the exchange rate of foreign currencies (mainly euros). This normative act was published in Official Gazette no. 92, dated 23.06.2023.
The normative act provides that the exporting subjects of goods in the active processing mode, which during the year 2022, have exported no less than 70% of the total sales value (including exports), shall pay the profit tax for the year 2023 until March 31, 2024, but shall not pay the advance payments for the periods of June 30, September 30, or December 31, 2023.
Explanation: Law no. 8438, dated 28.12.1998, “On income tax,” provides that the financial balance sheet and its annexes, together with other accompanying data, are submitted by March 31 of the following year. During the subsequent tax period, the taxpayer prepaid the quarterly profit tax within the following dates: (a) March 30, for the months of January, February, and March; (b) September 30, for the months of July, August, and September, and (c) December 30, for the months of October, November, and December.
** Law no. 29/2023 takes effect from January 1, 2024 (with the exception of articles 69 (1) (ç) and 69 (2), which have taken effect from June 1, 2023), and until the commencement date of the effects of this law, the provisions of Law no. 8438, dated December 28, 1998, “On income tax,” as amended, shall apply.
Article 69 (1) (ç) of Law no. 29/2023, “On income tax,” determines that legal entities registered before to the entry into force of this law, engaged in economic activities for the production or development of software, shall be subject to income tax with 5% rate until December 31, 2025.
Meanwhile, article 69 (2) provides that the personal income tax from employment, for the period June 1, 2023 – December 31, 2023, is as follows:
| Salary income
in ALL/month From To |
Taxable income
in ALL/month From To |
Tax rate in
percentage/month |
| 0 50.000 | 0 50.000 | 0% |
| 50.001 60.000 | 0 35.000
35.001 60.000 |
0%
13% of the amount over 35,000 ALL |
| 60.001 More | 0 30.000
30.001 200.000 200.001 More |
0%
13% of the amount over 30,000 ALL 22,100 lekë + 23% of the amount over 200,000 ALL |
Draft Law for Several Amendments to the Social Insurance Law
In the Parliament of Albania, the draft law “On several additions and amendments to Law no. 7703, dated 11.5.1993, “On social insurance in the Republic of Albania,” as amended, has been deposited. The main changes brought by this draft law are as follows:
- Individuals professionally engaged in the field of information technology, employed in entities primarily engaged in information technology activities, who conduct their activities in accordance with Law no. 58/2022, “On the establishment, organization, and functioning of technology and scientific parks,” shall pay social insurance contributions at the minimum monthly wage level nationally (with their prior approval), regardless of the declared gross salary.
- Elderly pension beneficiaries, who are self-employed as the only ones in the sector private are exempted from the obligation for it paid the mandatory contributions of social security.
- Elderly pension beneficiaries, whether employed or self-employed in the private sector, withdraw their pension benefits during the period of employment/self-employment. This period of employment/self-employment in the private sector is not recognized as an insurance period for pension purposes.
- Banks, upon receiving a decision from the Social Insurance Institute, block the bank account of the pensioner and return to the social insurance fund account the pension benefits pertaining to periods after the pensioner’s passing, which have been credited unfairly to the account due to failure to update by the Civil Registry.
- Requests for benefits under the law are deposited on the government portal e-albania, while original or certified documents are sent by mail.
Draft Law for Several Amendments to the Local Tax System Law
In the Parliament of Albania, a draft law “For an amendment and several additions to Law no. 9632, dated 30.10.2006, “On the local tax system,” as amended, has been deposited. The draft law aims to propose a new fiscal relief regarding the infrastructure impact tax, for structures intended for use in the agricultural and livestock sector.
According to the proposed amendments, the infrastructure impact tax for the construction of structures intended for use in the agricultural and livestock sector shall not exceed 1% of the investment value, while for Municipality of Tirana is no more than 2% of her.
Moreover, the tax as defined above is also applicable to entities in the application process for obtaining construction permits for the construction of structures intended for use in the agricultural and livestock sector.
