Taxation in Albania

Taxation
An aspect of fiscal policy
Policies Government revenue Tax revenue Non-tax revenue Tax law Tax bracket Tax threshold Exemption Credit Deduction Tax shift Tax cut Tax holiday Tax advantage Tax incentive Tax reform Tax harmonization Tax competition Double taxation Representation Unions Medical savings account Tax, tariff and trade
Economics General Theory Price effect Excess burden Tax incidence Laffer curve Optimal tax Theory Optimal capital income taxation Distribution of Tax Tax rate Flat Progressive Regressive Proportional
Collection Revenue service Revenue stamp Tax assessment Taxable income Tax lien Tax refund Tax shield Tax residence Tax preparation Tax investigation Tax shelter Private tax collection Tax farming
Noncompliance General Tax avoidance Tax evasion Tax resistance Tax shelter Smuggling Black market Unreported employment Corporate Tax inversion Transfer mispricing Base erosion and profit shifting (BEPS) Double Irish Dutch Sandwich Single Malt Irish Green Jersey Locations Tax havens Corporate tax havens Offshore financial centres (OFCs) Offshore magic circle Conduit and Sink OFCs Financial centres Financial Secrecy Index Examples Apple €13 billion EU fine Luxembourg Leaks Leprechaun economics Paradise Papers Panama Papers Ireland as a tax haven United States as a tax haven Panama as a tax haven
Types Direct Indirect Per unit Ad valorem In rem Capital gains Carbon Consumption Dividend Ecotax Excise Fuel Georgist Gift Gross receipts Income Inheritance (estate) Land value Payroll Pigovian Property Sales Sin Single Stamp Steering Turnover Value-added (VAT) Corporate profit Excess profits Windfall profits Negative (income) Wealth
International Financial transaction tax Currency transaction tax European Union Common Consolidated Corporate Tax Base (CCCTB) Tobin tax Spahn tax Tax equalization Tax treaty Permanent establishment Transfer pricing European Union FTT Foreign revenue rule
Trade Custom Duty Tariff Import Export Tariff war Free trade Free trade zone Trade agreement ATA Carnet
Research Academic Mihir A. Desai Dhammika Dharmapala James R. Hines Jr. Joel Slemrod Gabriel Zucman Advocacy Groups Tax Justice Network (TJN) Institute on Taxation and Economic Policy (ITEP) Oxfam (UK) Tax Foundation (US) Tax Policy Center (US)
Religious Church tax Eight per thousand Teind Tithe Fiscus Judaicus Leibzoll Temple tax Tolerance tax Jizya Kharaj Khums Nisab Zakat
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Taxes in Albania are grouped into three main categories: (a) indirect taxes (VAT, excise,gambling and other indirect taxes), (b) direct taxes (income tax, personal income taxes, taxes on capital); (c) local taxes, and (d) social and health security contributions.

National Taxes, administered by the Central Tax Administration and Customs Administration include: 1. Indirect taxes a. Value added tax; b. Excise tax (since 2012 is administered by Custom administration); c. Taxes on gambling, casinos and hippodromes; 2. Direct taxes d. Income tax; e. National taxes; f. Other taxes, which are defined as such by special law, and g. Customs taxes. 3. Social and health security contributions, as defined in the social insurances law 4. Local taxes and tariffs administered by Local Tax Administration include: a. Tax on immovable property, which includes tax on buildings and agricultural land; b. Tax on hotel accommodation; Tax on impact of new constructions upon infrastructure; d. Tax on transfer of ownership right on real estate; e. Annual tax for vehicle registration; f. Tax for occupation of public space; g. Advertising tax; h. Temporary taxes i. Registration tariff for various activities; j. Fee on infrastructure of education; k. Vehicle parking tariff; l. Tariff for services.

In Albania, taxes are levied by both federal and local governments. Most important revenue sources, include the income tax, social security, corporate tax and the value added tax, which are all applied on the federal level. The Albanian Taxation Office is the revenue service of Albania.

As of 2014, income tax is progressive, with three brackets.^[1][2]

Earlier, Albania had a flat tax of 10%, which was implemented in 2008.^[3][4][5] Value-Added Tax is levied at two different rates of 20% as standard rate, and 10% on medicinal products.^[6]

Social security and health insurance contributions are paid on employment, civil and management income. Contributions is paid on a monthly income, from a minimum of 22,000 to a maximum amount of 95,130. The employees contribution is 9.5% while the employer pays 15%. Health insurance is levied at 1.7% for both employee and employer. The self-employed pay 23% for social security and 7% for health insurance.^[7]

Corporate tax in Albania is levied at a flat rate of 15%. Businesses with a turnover of less than 8 million is exempt from corporate tax. A business is tax resident when the company has been incorporated in Albania or has a permanent establishment or the management and control is exercised in Albania.^[8]

References

 9. Taxation Trends in Western Balkans
    http://altax.al/en/altax-products/product/taxation-trends-in-western-balkans-2016

 10^ http://www.hotelmukta.com.bd/