Albania

Taxable period

Albania’s tax year is the calendar year (i.e. 1 January to 31 December).

Tax returns

Tax resident individuals in Albania, who generate income sourced not only in Albania but also from other countries, and non-residents who generate income sourced in Albania, are required to submit an annual income declaration to the central tax administration. 

A tax resident individual is obliged to submit an annual personal income tax return when his/her annual taxable income is:

a) more than ALL 1,200,000 per year from all sources, or;
b) when he is in an employment relationship with more than one employer, regardless of the amount of income he receives from the employers;
c) more than ALL 50,000 of any other type of income, not subject to final withholding tax, as per the provisions of this law.

Individuals are required to submit an annual income declaration at the central tax administration not later than 31 March of the year following the tax period for which the declaration is made.

Every natural person (self-employed or trader individual) who carries out economic activity is obliged to submit the annual tax return for business income within the deadline above.

Payment of tax

Employers are required to withhold PIT for salaries and other compensations related to current employment.

Whereas the declaration is made on an annual basis, the taxpayer has the obligation to pay the respective tax to the tax authorities by the 20th day of the month following the month when the income was received.

The tax paid during the year will be deducted from the amount of tax calculated. In the event that the individual declaration results in tax liability, the individual should make the payment of the tax due not later than 31 March of the year following the tax period for which the declaration is made.