Albania

Albanian law applies the principle of worldwide taxation. Resident entities are taxed on all sources of income in and outside the territory of Albania, while non-resident entities are taxed on income generated only in the territory of Albania.

The corporate income tax (CIT) rate in Albania is 15%. CIT is assessed on the taxable profits calculated as taxable income less deductible expenses.

However, taxpayers whose activity is software production and development, registered until 31 December 2023, are subject to a 5% CIT for the periods until 31 December 2025. Similarly, taxpayers whose activity is based on agricultural co-operation and those whose activity is certified as 'agro tourism', in accordance with the respective laws, are subject to a 5% CIT until 31 December 2029.

Local income taxes

Local taxes on income depend on a number of factors, such as type of activity, municipality where the business is located, and the annual turnover. Consequently, these taxes may vary from 20,000 to 550,000 Albanian lek (ALL).