New income tax in Albania

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.
For further information on the subject, contact us in the studio!

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