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Albania to Introduce 0% Profit Tax Rate for Small Taxpayers — Orbitax Tax News & Alerts

The Albanian parliament is considering a draft law submitted on 16 July 2020 that would amend the scope of the profit tax and provide a 0% profit tax rate for smaller taxpayers. In particular, the draft bill would:

  • Remove references to registration for VAT for the scope of persons subject to profit tax and the addition of a general income threshold of ALL 8 million; and
  • Amend the profit tax rates with the replacement of the 5% rate with a 0% rate as follows:
    • 0% for taxpayers with annual income of up to ALL 14 million
    • 15% for taxpayers with annual income over ALL 14 million

If approved, the law would enter into force 15 days after publication in the Official Gazette and would apply from 1 January 2021.