Albania legal and accounting and tax considerations in 2024

1. In accordance with Civil Code Book One No. 7491 – 1991, each entity must register for corporate tax with the Albania Tax Authority;
2. Albanian companies must pay corporate tax at a standard rate of 15%. Reduced corporate tax rates of up to 7.5% can apply for newly established companies with foreign ownership;
3. VAT registration is mandatory to companies with annual turnover exceeding US$40,000 (ALL5 million). The standard VAT rate is set at a rate of 20%;
4. Albania companies are required to withhold tax at a rate of 10% from dividends, interest and most other payments made to other foreign companies. However, Albania’s 37 double tax treaties minimize withholding tax for service fees, dividends, interest, royalties, and branch profits;
5. Social security contributions payable by the employer are levied at a rate of 16.7% over the employee’s gross salary;
6. Healy Consultants will assist our Client with: i) documenting and implementing accounting procedures ii) implementing financial accounting software iii) preparing financial accounting records iv) preparing forecasts, budgets, sensitivity analysis and v) other services;
7. It is important our Clients are aware of their personal and corporate tax obligations in their country of residence and domicile; and they will fulfill those obligations annually. Let us know if you need Healy Consultants’ help to clarify your annual reporting obligations.