background image

Albania Brings Forward the Effective Date of New Personal Income Tax Table for Employment Income and Increases Minimum Wage — Orbitax Tax News & Alerts

Albania has published Law no. 4 of 12 March 2022, which amends the effective date of Law no. 113/2021. Law no. 113/2021 provided for the introduction of a new personal income tax table for employment income. The new table includes a general exemption from income tax where monthly income does not exceed ALL 40,000. Where monthly income exceeds ALL 40,000, different brackets/rates apply depending on the monthly income amount as follows:

  • Monthly income from ALL 40,001 to 50,000:
    • up to ALL 30,000 - 0%
    • ALL 30,001 to 50,000 - 6.5% (50% x 13%)
  • Monthly income of ALL 50,001 or more:
    • up to ALL 30,000 - 0%
    • ALL 30,001 to 200,000 - 13%
    • ALL 200,001 or more - 23%

The new personal income tax table for employment income was to be effective starting 1 July 2022, but as amended by Law no. 4, the effective date is 1 April 2022.

In addition to bringing forward the effective date of the new tax table, Albania has also published Decision no. 158 of 12 March 2022, which increases the national minimum wage for ALL 30,000 to ALL 32,000 with effect from 1 April 2022. The minimum wage is used as the minimum basis for social and health insurance contributions.