January marks the introduction of new taxes for individuals and businesses

January marks the introduction of new taxes for individuals and businesses
The month of January this year has marked the entry in force of a new tax regime for Albanian individuals and businesses following the new tax policy that parliament voted at the end of last year and which has entered in force on 1 January 2019. So, the main changes relate to tax procedures, income tax, Value Added Tax and national taxes. As far as tax on income is concerned, this year zero tax will apply on gross salaries of up to 30 thousand lek; 13% on gross salaries from 30.000 to 150.000 lek and 23% on gross salaries of up to 150.000 lek.

Meanwhile, a new tax which changes this year is also tax on dividend, according to which, 8% tax will apply on undistributed profits realized in 2018 and before, including reserves and capitalized profits, on condition that the tax which applies to undistributed profits for the period 2017 and before, is paid by 30 September 2019. Meanwhile, dividend on profit for 2018 should be paid by 20 August 2019. “In case these criteria are not met, then the taxpayer should pay 15% of tax on dividend”, economy experts explain. Meanwhile, as far as VAT is concerned, the new tax scheme which has now entered in force foresees a 6% tax for adverts on audiovisual media.  The same rate will also apply for some means of passenger transport and books.

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