Tax Alert - 02 / 17

To keep you up-to-date with the latest economic and financial developments, this bulletin prepared by our Tax Team provides information that may affect the operation of your business in Albania.

Issue 02/17

New Amnesty Law

The Albanian Parliament passed on 30.03.2017 the Law no. 33/2017, dated 30.03.2017 "On Payment and Cancellation of Tax Obligations, Customs Obligations, and on the Procedure of Removal from Circulation of Vehicles after Cancellation of Tax Obligations" (the "Amnesty Law"). This Law is published in the Official Gazette no. 86, dated 21.04.2017, and entered into force on 06.05.2017.

The Amnesty Law provides for the payment and waiver of tax and customs obligations, as well as defines the procedure of removal from circulation of vehicles after cancellation of unpaid tax obligations.

It relieves the taxpayers from execution of unpaid obligations, by totally or partially cancelling such obligations.

The beneficiaries

The following taxpayers are subject to this law:

taxpayers having tax obligations towards central and local tax administration including taxpayers with passive status or non-registered with the tax authorities; taxpayers having obligations towards the customs administration; taxpayers who own vehicles. Taxpayers convicted upon a final court decision for criminal offences in the tax and/or customs areas, in accordance with the relevant legislation, do not benefit from the amnesty as set forth in the Amnesty Law.

Tax obligations

Complete cancellation of tax obligations

Under the Amnesty Law, obligations resulting from periods up to December 2010 are fully waived if consist of:

unpaid tax obligations registered in the esystem of the tax authorities. Social and health insurance contributions are not covered from this provision. unpaid local taxes obligations as defined by law no. 9632, dated 30.10.2006 "On Local Taxes", as amended. administrative penalties and late payment interests for social and health insurance contributions reflected in the e-system of the tax authorities. Partial cancellation of tax obligations conditional to payment of the principal amount of the tax/fee/tariff/contribution

Penalties and late payment interests related to tax obligations, social and health contributions and unpaid local fees/tariffs concerning the tax period 'January 2011 - December 2014' and reflected in the e-system of the tax administration are waived to the condition that the payment of the principal amount is effectuated...