Last partial update, August 2023.
Albania Taxes 2023
- In Albania income of any individual is subject to a income tax rate of 0%-23% in 2023.
- Exemptions are granted to taxpayers with specific types of income.
- The standard rate of tax for an Albanian corporate tax in 2023 is 0%/15%.
Income Tax for an Individual
- An individual in Albania is liable for tax on his income as an employee as well as on income as a self-employed person. In the case of an individual who answers the test of a "permanent resident" of Albania, tax will be calculated both on his income earned in Albania and overseas.
A foreign resident who is employed in Albania pays tax only on his income in Albania. - To be considered a Albanian resident, the requirements must be met of residency in Albania of at least 183 days in any calendar year.
- An employer is obligated to deduct the income tax payable as well as national insurance, immediately each month from a salary paid to an employee.
- Certain payments are deducted from taxable income as detailed below.
Personal tax rates 2023(monthly salary income):
| Income (ALL) | % |
| 1-40,000 | 0 |
| 40,001-50,000 | 6.5 |
| 50,001-200,000 | 13 |
| Over 200,000 | 23 |
Dividend income is taxed at 8% .All sources of other income are taxed at 15% .
Albania Corporation Tax
- In 2023 the standard corporate tax in Albania is 0% for annual income of up to ALL(Albanian Lek) 14 million, 15% for higher income.
- A special tax rate is applicable for companies dealing in car industry, software and agriculture.
Albania Capital Gains
- In Albania, capital gains tax is paid by an individual on the sale of real estate or work vehicles such as planes or cars on the difference between the sale price and the higher of two calculations - the market price of the asset sold, or the cost of purchase linked to the index.
- An individual who sells one moveable asset pays tax on the difference between the sale price and the cost of the asset sold on adjusting the cost to the rate of inflation.
- Capital gains tax for companies in Albania is added to the regular income.
- Individuals pay 15% tax.
Reporting Dates and Payment in Albania
- The tax year in Albania is the year ending on December 31.
- A limited company files an annual report by March 31. An individual must file an annual report by April 15.
- Companies that finished the previous year with a profit pay 12 monthly advance payments in the following year.
Deduction of Tax at Source -Albania
Taxation of EmployeeAn employer is obligated to deduct tax at source from an employee and to make additional contributions to social security.
Albania Social Security
As regards to salaried employees, the social security rates are:Employer 16.7%.
Employee 11.2%.
Other deductions
Tax must be deducted at source from the following payments to non-resident companies on the basis of the following:- - Dividend - The standard deduction is 8%.
- - Interest - the standard rate of tax deducted at source - 15%.
- - Royalties - the standard rate of tax deducted at source - 15%.
- - Technical Fees - 15%.
Comment: Tax deducted at source in respect of foreign residents is subject to the Double Taxation Prevention Treaty.
Note: The information in this site is for general guidance only. Users of this site are advised to take professional advice before taking practical tax decisions.
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