New Law Regulating Fiscal Burden Of Employees

• Published date: 09 June 2023
• Subject Matter: Employment and HR, Tax, Employee Benefits & Compensation, Income Tax
• Law Firm: Eurofast
• Author: Ms Drilona Likaj

A new law on Income Tax was recently approved in Albania aiming to reduce fiscal burden for all employees and provide a fairer and universally accepted tax system.

As of 01 June 2023, and until 31 December 2023 non-taxable income will be increased for individuals from 40 thousand ALL, which is today, to 50 thousand ALL. We need to emphasize the fact that the non-taxable income had previously seen another increase from 32 thousand ALL, to 40 thousand ALL, in April 2023. The target of the government is to make low wages non-taxable and reduce the fiscal burden.

The law will bring changes starting from 01 January 2024 creating a modern self-declarative tax system where the individual and the entity pay their fair share of the income tax and seek the return of this contribution in the form of benefits and improved public services, increase the contribution to the budget of individuals and entities through income tax, balancing the weight of indirect taxes and create a fairer and more universally...