Albania

Taxable income of the individual (subject to PIT) is composed of three categories: 

• Income from employment.
• Business income.
• Income from investments.

Income is taxable regardless of whether it is paid in cash or in kind. Income in kind is assessed at the market value, as far as it is not defined otherwise in this law or in the by-laws issued in its implementation. 

See the Taxes on personal income section for applicable PIT rates.

Capital gains

Capital gains on the sale of shares are taxable at rate of 15%. The taxable base is the difference between the sale price and the purchase price of the shares (or the nominal value).

The transfer of ownership of real estate, either land or buildings, is subject to 15% tax on the capital gain realised from the sale transaction.

Partnership income

Partnerships are treated as separate taxable persons, which mean that an individual participating in more than one partnership should report separately for each of the partnerships they participate in.

Exempt income

The following incomes are exempt when determining taxable income for PIT purposes:

• Lump-sum allowances for business travel, according to the amounts determined by the fiscal legislation.
• Income received from social and health insurance schemes.
• Student scholarships.
• Compensation received as a result of expropriation.
• Income exempted according to international agreements.
• Compensation received from ex-proprietors or political prisoners.
• Economic aid from public budgets for individuals with no income or with low income, according to the provisions in the relevant legislation in force.
• Rewards and prizes given by state institutions for achievements in science, sports, and culture.
• Income from support with grants and subsidies in agriculture and animal husbandry with funds from the state budget or other sources.