The tax year in Albania is the calendar year.
Annual tax returns must be filed by 31 March of the following year.
Non-residents may also register and file tax returns in Albania. The return filing deadline is the same as for residents, i.e., 31 March. Effective from 1 January 2019, non-residents earning income from sources in Albania are required to file a specific form for declaration and payment of corporate income tax.
Advance corporate tax payment is due by the end of each quarter of the tax year. However, taxpayers may also opt to pay advance tax by the 15th of each month.
Advance tax for the months of January to March is computed based on the taxable income of 2 years prior to the current tax year. Whereas, the advance tax for the remaining 9 months (i.e., April to December) is determined based on the taxable income of the year preceding the current tax year.
The annual CIT is payable by 31 March of the following year – and is computed as the difference between the CIT payable for the entire tax year less advance tax payments made during the year.
Small business eligible for reduced corporate tax (see Sec. 8.1.) must make advance tax payments on a quarterly basis. Payments must be made by 20 April, 20 July, 20 October, and 20 December for the quarters ending March, June, September, and December, respectively.
Non-resident withholding tax on dividend is required to be paid by 20 August of the year the financial results are approved, irrespective of the actual distribution of dividend to the shareholders.
In response to the COVID-19 pandemic, Albania has provided the following extensions:
- For taxpayers with an annual turnover of up to ALL 14 million:
- Corporate income tax payment due for the tax year 2019 may be paid in the second half of 2020; and
- Exemption from advance tax installment requirements in 2020;
- For taxpayers with turnover exceeding ALL 14 million, advance tax installments for the second and third quarter, i.e., April-June and July-September 2020, are deferred to April-September 2021. However, taxpayers engaged in banking, telecommunication, pharmaceutical, and food trade sectors are excluded from this benefit; and
- Deadline for advance tax installments for April-December 2020 is deferred to April-December 2021 for taxpayers engaged in tourism activities, the inward processing regime and call centers.