This new amendment of the Law “On the creation and operation of economic zones”, show the strategy of the Albanian Government to promote to production industries in Albania
Some of the tax reliefs and supporting measures are presented below:
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Developers and users will be exempt from paying 50% of their corporate income tax for the first five years of their activity in the zone;
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Developers and users will be able to allocate as deductible expenses 20% of their yearly capital expenses, irrespective of amortisation levels, for a period of two years from the beginning of their activity;
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The developer’s project is not subject to the tax on infrastructure impact; Buildings in the zone are exempt from immovable property tax for a five-year period; For the purposes of income tax calculation, during the first year of activity social and health contributions are recognised at 150% of their value. During subsequent years, any additional wage expenses (higher than the preceding year) are considered recognised expenses at 150% of their value from an income tax perspective;
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Employee training costs are considered deductible expenses at twice their value for 10 years from the beginning of the economic activity;
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Scientific research and development costs are considered deductible expenses at twice their value for 10 years from the beginning of the economic activity.
Furthermore, the new legislation emphasises that the transfer of an existing business activity in the field of technology and economic development in the Republic of Albania to such a zone solely for tax relief is strictly forbidden. The provisions of the new law are valid only for the technology and economic development zones established after it comes into force.
