The Albanian government recently approved changes to the “income tax” bill, with the aim of reducing the taxation on profits of small businesses in the turnover range from 5 million lek to 14 million lek per year.
Thus, from 1 January 2021 this important innovation will come into force for small businesses with a turnover of up to 14 million lek: they will be exempt from the simplified tax on profits, currently set at 5%.
Instead, for companies operating in Albania with a turnover of over 14 million lek per year, the tax on profits will remain unchanged at 15%.
Companies with an annual turnover of between 0 and 5 million lek will continue to apply a zero tax on profits.
Basically, therefore, with a business turnover between 0 and 14 million lek per year, the exemption from taxation on profits will be provided.
The amendment to the law that abolishes the 5% tax on profits for companies with a turnover of between 5 and 14 million lek per year certainly represents a first aid for the recovery of smaller companies and is particularly important in this delicate and economic moment. strong crisis also linked to the Covid-19 emergency.
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