background image

Albanian Parliament Approves Capital Gains Tax and Corporate Income Tax Amendments and Incentives for Agritourism — Orbitax Tax News & Alerts

The Albanian parliament has announced the approval on 9 July 2018 of amendments to the Income Tax Act and the VAT Act, which include:

  • Setting a 15% tax rate on capital gains realized on the transfer of immovable property, including buildings, land, and agricultural land, with a provision that the transfer of land with a construction site on the basis of an exchange contract is not considered a taxable event;
  • Increasing the turnover threshold for the small business tax rate (5%) from ALL 8 million to ALL 14 million (standard 15% rate applies if turnover above the threshold);
  • Introducing a 5% corporate tax rate for qualifying agricultural cooperatives;
  • Introducing a 5% corporate tax rate for certified agritourism companies that applies for a 10-year period for companies certified by the end of 2021 (applies from the year the company is certified); and
  • Extending the 6% reduced VAT rate to accommodation and restaurant services in connection with certified agritourism services.

The amendments apply from 1 January 2019.