The tax system of Albania is based on a 10% flat tax. In the year 2013 the Law 122/2012 brings some important changes for the income tax in Albania. We have summarized an overview of the most important Albanian income tax changes for the year 2013, that are a result of the Law 122/2012.
The Law 122/2012 introduces certain changes in relation to income tax:
- Compensation benefits, obtained through final decisions of the courts, and certain compensation for court costs are exempted from income tax
- Income earned from state institutions for achievements in science, sports, and culture are exempted from income tax
- Scholarships granted to students from educational public and private institutions are recognized as an deductible expense to the extent determined by the Council of Ministers, provided that public educational institutions submit the number and amount of scholarships to the Ministry of Education and Science at the beginning of the school year
- Losses of a taxpayer may no longer be carried forward if the direct or indirect ownership of the share capital or voting rights of the taxpayer change by more than 50%
- For the self-employed, who have a turnover of less than LEK 2 million, the value of 10 percent of gross revenues from the development of economic activity / trade or services is considered as gross income