Annual Personal Income Tax Return
According to the amendments from the year 2012, the deadline for submission of the annual personal income tax return and the payment of the tax for the fiscal year 2013 is 30 April 2014.
Applicable tax rate on taxable income of the taxpayer, who declares the annual statement of income, is 10 percent.
This amount is deducted from the tax paid during the reporting year, documented by the holder at their source.
TAX DECLARATION REQUIREMENTS
- Albanian tax residents generating income within and outside the territory of Albania for a value of at least ALL 2 million per year;
- Non-Albanian tax residents for the income generated within the territory of Albania, with an annual income of at least ALL 2 million per year.
Albanian tax resident individuals generating an annual income up to ALL 1,050,000 have the option to complete their annual personal tax return and benefit from the tax deductible expenses as provided by the Law.
DEDUCTIBLE EXPENSES
Deductible expenses are as follows:
- Voluntary pension contributions, according to the law on voluntary pension funds;
- Amount of interests of bank loans for education, for themselves or for children and persons in custody;
- Part of the cost for medical treatment for themselves or for children and persons in custody, not covered by mandatory health insurance;
- Taxes on buildings.