All companies in Albania are required to prepare and maintain accounting books, records, and financial statements. The accounting records and financial statements must be maintained for at least 10 years from the closing of the financial year to which they relate.The statutory financial statements are required to be submitted by 31 March of the following year, along with the annual tax return.
A new law on accounting and financial statements is effective in Albania from 1 January 2019. As per the new law, International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS) are applicable only to public interest entities and their regulators operating in the area of credit and insurance, with certain exemptions. The criteria for considering a company as a public interest company depends on its nature of the business, the size of the business, or the number of employees. Entities other than public interest companies may apply National Accounting Standards (NAS).
The new law also classifies entities as micro-economic, small, medium-sized, and large based on a combined criterion of assets, revenue, and number of employees. This classification is relevant for determining the financial statements to be filed by a company, for example, medium-sized and large enterprises may be required to file additional statements and specific reports as compared to micro-economic or small enterprises.
Accounting records are required to be maintained in the Albanian language.
In response to the COVID-19 pandemic, Albania announced certain extensions for taxpayers, which include that the financial statements (balance sheet, annexes, and other required documentation) may be submitted by 31 July 2020.