Albania

Taxable period

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

Tax returns

For declaration purposes, a tax return is filed by employers with the tax authorities. This tax return is a summary of all individual taxes withheld from each employee of the entity according to payroll calculations.

Individuals resident in Albania who generate income sourced not only in that territory 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.

Generally, individuals who generate annual gross taxable income (of all types) of under ALL 2 million are exempted from the requirement to submit an annual income declaration. However, individuals who are employed by more than one employer are required to submit an annual income declaration, although their total income may be less than ALL 2 million. Such individuals declare the income in the annual income declaration as being from a single source and calculate the PIT liability arising from the progressive rates.

Individuals exempted from the annual income declaration requirement who generate annual gross taxable income (of all types) of ALL 1.05 million or less can opt to submit the declaration in order to benefit from deductible expenses.

Individuals are required to submit an annual income declaration at the central tax administration not later than 30 April of the year following the tax period for which the declaration is made.

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 30 April of the year following the tax period for which the declaration is made.