Albania

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Published on: 2023-03-28 10:58:20

Last modified: 2023-04-25 13:35:43

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Reference(s) Albanian General Directorate of Taxation

Tax tables last updated: 2023-04-19 09:12:00 [Update Rates]

Currency Albanian Lek [ ALL ] [ L ]

Introduction

Below are specific calculators for the calculation of Personal Income Tax (PIT) and Corporation Income Tax (CIT) in Albania. These tax calculators are for resident and non-resident tax filing status in Albania. The Albania tax calculators are updated with the rates and thresholds up to and including the 2023 tax year, specific tax rates and thresholds can be reviewed in the Albania tax tables.

Tax in Albania: An Overview

Albania is a country located in Southeast Europe, bordered by Montenegro to the northwest, Kosovo to the northeast, North Macedonia to the east, Greece to the south and southeast, and the Adriatic and Ionian Seas to the west and southwest. It is known for its stunning landscapes, cultural heritage, and business-friendly environment. If you're doing business in Albania or planning to move to the country, it's important to understand the tax system. This guide will provide an overview of taxes in Albania and how to use tax calculators to estimate your tax liability.

Income Tax in Albania

Individuals and businesses operating in Albania are subject to income tax on their earnings. The income tax rates in Albania vary depending on the level of income earned.

Who is Subject to Income Tax in Albania?

All individuals and businesses operating in Albania are subject to income tax. This includes Albanian nationals as well as foreign nationals working in Albania. Income tax is based on the taxpayer's net income, which is calculated by deducting allowable expenses from the gross income earned during the tax year.

Tax Calculators for Albania

If you're doing business in Albania or planning to move to the country, it's important to understand your potential tax liability. Our tax calculators can help you estimate your income tax, corporate tax, VAT, and other taxes in Albania. Our calculators are easy to use and provide accurate estimates based on the latest tax laws and rates in Albania.

Corporate Tax in Albania

Businesses operating in Albania are subject to corporate tax on their profits. The corporate tax rate in Albania is 15%, which is relatively low compared to other countries in the region.

VAT in Albania

Albania has a VAT system in place, with reduced and standard rates of VAT (see the tax tables for the latest tax rates). The VAT is levied on the value added to goods and services at each stage of production and distribution. Certain goods and services are exempt from VAT, including basic food items and essential medical supplies.

Tax Incentives in Albania

Albania offers a number of tax incentives to encourage investment in the country. These incentives include reduced tax rates, tax holidays, and exemptions from certain taxes. In addition, there are a number of special economic zones in Albania that offer even greater tax incentives to businesses operating within their boundaries.

Conclusion

In conclusion, Albania has a tax system in place that is designed to support economic growth and development in the country. While income tax rates are relatively high, the corporate tax rate is low and there are a number of tax incentives available to businesses operating in Albania. Use our tax calculators to estimate your tax liability in Albania and make informed decisions about your business operations in the country.