Albania

Corporate - Tax credits and incentives

Last reviewed - 07 February 2020

The following entities are exempt from CIT:

  • Legal entities that conduct religious, humanitarian, charitable, scientific, or educational activities.
  • Trade unions or chambers of commerce, industry, or agriculture.
  • International organisations, agencies for technical cooperation, and their representatives, the tax exemptions of which are established by specific agreements.
  • Foundations or non-banking financial institutions established to support development policies of the government through credit activities.
  • Film studios and cinematographic productions (among other types of entity/activity) that are licensed and funded by the National Cinematographic Centre.
  • Voluntary pension funds administrated from the competent companies.
  • Accommodation structures "four- and five-star hotel and resort with special status", are exempt from income tax for a 10-year period, provided they receive special status until December 2024. The effects of the exemption commence at the moment of commencement of the economic activity of the accommodation structure, but not later than 3 years after the receipt of the special status.

Foreign tax credit

Albania does not apply foreign tax credits except in the case of DTTs (see Foreign income in the Income determination section).