Albanian Government Announces New Changes On Tax Laws

Published date30 November 2021
Subject MatterInternational Law, Tax, International Trade & Investment, Income Tax, Sales Taxes: VAT, GST
Law FirmEurofast
AuthorMs Drilona Likaj

The Albanian Minister of Finance presented the Fiscal Package of 2022 during the Parliamentary Assembly on Economy and Finance.

The main laws that will be affected by the changes included in the fiscal package of 2022 are on income tax; value added tax in the Republic of Albania; excises in the Republic of Albania and national taxes.

The main proposed changes that affect directly the citizens are the increase of the minimum taxable wage to the level of 40,000 ALL per month, as well as the reduction by 50% of the tax rate for taxpayers with salary income from 40,001 ALL to 50,000 ALL per month.

A part of the society will also be supported by reviewing the upper band of progressive taxation. The 23% taxation norm is to be applied to salaries over 200,000 ALL per month in 2022.

The change that affects the VAT Law is the treatment with reduced VAT rate of 10% of the supply of agricultural inputs (except for agricultural genetic modifiers). However, the list of categories of agricultural inputs will be determined later in time. This measure is expected to contribute to reducing informality, strengthening the economy, and ensuring the guarantee of agricultural products.

Following the changes that affect domestic production, a tax imposition of 100 lek/kg for the import or production of powdered milk is foreseen. A proposal specifically intended to incentivize milk production and trade within the country aiming to support local farmers.

What is more, a new...

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