Fiscal Package for 2017 - Albania


The Albanian Parliament passed on December 2016 the new fiscal package for the year 2017 with few changes of current laws with the purpose to build fiscal stability.

These tax changes were published on 27.12.2016. All of these changes enter into force as of 1 January 2017. 


Thin capitalization measures

Strating from 01.01.2018, for loans from related parties, the excess of net interest over 30% of earnings before interest, taxes, depreciation and amortization (EBITDA) will be considered as a nondeductible expense. This excess net interest will be allowed for carry forward and deducted in subsequent years.

Taxation on luxury vehicles

Vehicles with a price up to ALL 5,000,000 will be considered luxury vehicles and will be subject to luxury vehicle taxes (previously the price threshold was ALL 7,000,000). 

Excise Taxes

Increase of  the excise tax for tabacco not produced domestically.

Customs tariff

Customs tariff levels on certain items determined in Annex 1 of the law have been reduced to 0%.