To keep you up to date with the latest changes in Albanian legislation, this tax alert prepared by “ARS Legal & Financial Services” Ltd provides you with valuable information on the latest publications of the Albanian legislation.
In the Official Gazette No. 161, dated 09.09.2020 is published DCM No. 690, dated 2.9.2020 “On determination of procedures of the competition, additional criteria for applicants competing to obtain a license for the category “Casino”, the procedure of announcing the winner, as well as the occasions of revocation or suspension of this license.”
This decision determines the procedure of conducting the competition, additional criteria for applicants competing to obtain a license for the category “Casino”, the procedure of announcing the winner, as well as the occasions of revocation or suspension of this license.
The competent Authority to opening the competition to giving and issuing the license for the category “Casino” is the Authority of Supervising Games of Luck (hereinafter ASGL).
The ASGL publishes the notice for opening of the competition and administers documents as submitted by the interested parties. The fundamental condition necessary to applying to obtain the license for the category “Casino” are as follows:
- established as a joint stock company, headquartered in the Republic of Albania;
- Having on its object of activity the games of luck, according to the type of the required game as well as having experience in the field of games of luck;
- The sum of capital must be no less than ALL 1 200 000 000 (one milliard and two hundred million);
- The interested subject should declare the source of capital to be invested for exercising the activity in the field of “Casino”;
- Should have the proper financial, management, organizational capacities and credibility to be successfully engaged in such projects;
- Presents guarantee of assets, along with the application and conditions of sequestration of this guarantee;
- Presents restrictions to changing the proprietorship of shares for the licensed;
- Establishes the server by which will deliver full information over each transaction that will be completed between the subject and the players, turnover and profits, as well as any other data as required upon ASGL’s request in relation with the conduction of this activity. ASGL will have access over this server on real time.
The applicant should submit supporting documents, according to legal requirements as set out in this Decision, in order to prove the fulfillment of the above – mentioned requirements.
Among the accompanying documents, the interested subject submits
- Certificate of non-criminal records (of the applicant/administrator/shareholder of the company); a attestation for not being part of a court proceeding or that not having been convinced by a final decision for criminal offences in the field of economic crime, tax evasion and/or customs, abuse of power/authority, bribery, theft, trafficking of narcotics or weapons, explosives, non-payment of fines or other criminal deeds, compromising persons in their honor and personality
- a prior agreement with a bank of second level, headquartered in the Republic of Albania where the transactions, collections and deposits shall be completed;
- different declarations according to legal requirements as set out in this decision
- any other information apprised necessary to be administered by the authorized authority.
As of above, the applicant shall submit an authorization giving permission to the Authority to conduct relevant verifications of the submitted documents/information. In the absence of this authorization, the application shall be refused.
Among the fundamental documentation and accompanying documents, the applicant should present documents related to management and administrative capacities such as declarations of labor force, technical devices to be used in order to exercise the activity and that fulfill the national standards or standards required by Law No. 155/2015 “On games of luck in the Republic of Albania”, as amended.
The authority shall scrutinize the file within 30 (thirty) days from the date of submission of the documents and shall notify within the above mentioned term on the acceptance or refusal of the application.
In case of acceptance of the application, ASGL shall inform the subject on the approval of the request to licensing and seeks for payment of licensing fee according to the category (as determined in the Instruction of the Minister of Finance “On the manner and terms of conducting the payment of licensing fee for each category of lucky games” as well as freezing guarantee fund for the winner of the lucky games and of the guarantee fund for expiation or periodic liabilities toward state institutions.
Failure to meet the two above mentioned requirements evokes suspension and/or removal of the license.
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DCM No. 689, dated 2.9.2020, published in the Official Gazette No. 161, dated 08/09/2020 determines the areas (in Tirana) in where games of luck, category “Casino” can be placed. According to this Decision, the licensed interested subjects are allowed to exercise this activity within the restrictions of the streets, as below determined:
“Str. “Barrikadave”; Str. “Urani Pano”; Str. Dedë Gjon Luli”; Str. “Ibrahim Rrugova”; Boulevard “Zhan D’Ark”, Str. “Xhorxh W. Bush”.
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In the Official Gazette No. 171, dated 24/09/2020 is published Instruction No. 36 dated 21.9.2020 “On an amendment to Instruction No. 5, dated 30.01.2006 “On income tax”, as amended, which stipulates for an amendment to point 5.7 of the Instruction and more precisely “Each reduction of capital, that is not intended to reduce the losses and is intended for distribution to shareholders, shall be deemed dividend and shall be taxed as such … “ by substituting the previous definition, quoted “Each reduction of capital, that is not intended to reduce the losses, shall be deemed taxable dividend and shall be taxed by 15% …”.
