Albanian Tax Alert: Crucial Insights On Normative Act No. 7

• Published date: 18 January 2024
• Subject Matter: Tax, Income Tax, Sales Taxes: VAT, GST, Withholding Tax
• Law Firm: Eurofast
• Author: Ms Ingrid Kodra

Eurofast brings your attention that in accordance with Normative Act No. 7, dated 14.12.2023, a series of consequential amendments have been enacted in alignment with Income Law No. 29/2023 with a strong focus on alterations in Articles 65, 69, and 72.

Article 65 - Payroll's Tax Agent

Point One Amendment

Employers responsible for paying income from employment must deduct taxes from these earnings, provide the payroll list, and transfer the withheld tax to the treasury budget account by the 20th of the following month. This applies to entities, self-employed individuals, and VAT-registered trader individuals. For self-employed or trader individuals not registered for VAT, the process must be completed by the 20th of the month following each 3-month period.

Article 69 - Transitional provision

The first point of Article 69 has undergone substantial changes with the addition of three letters "e," "'," and "f," each carrying specific provisions:

e) Starting from the tax period of 2024, all taxpayers registered before December 31, 2023, and those registering for the first time in the following year, subject to simplified profit tax or income tax, will follow the forms and tax responsibilities outlined in the amended Law No. 9632, dated 30.10.2006, 'On the local tax system,' and Law No. 8438, dated 28.12.1998, 'On income tax'').

Prepayments, according to Article 63 of this law, for categories of individuals providing professional services and subject to income tax from January 1, 2024, excluding the year 2024, are calculated based on the declarations of simplified profit tax and income tax from previous years, applying the tax rates stipulated in this law.

f) The withholding tax declaration at source, according to Article 57 of...