Profit tax on small businesses in Albania
- For taxpayers with annual turnover from ALL 0-5 million (36,000 Euro), the simplified profit tax on small business will be zero ALL per year.
- For taxpayers with annual turnover from ALL 5-8 million, the tax rate of simplified profit tax on small business will be 5% of the taxable profit.
- The declaration procedure for taxpayers with annual turnover from ALL 5-8 million remains the same. Meanwhile, taxpayers with annual turnover from ALL 0-5 million, should declare within the same deadline but upon a procedure to be provided by an expected Instruction of the Minister of Finance.
Property tax on construction land
- The tax base is the surface of the construction land in square meters, under ownership or use. The tax rates are determined in annex 2.1 of the law and are expressed in ALL/m2/year. Construction land tax is determined according to four categories of local government units and the tax rates vary between 0.14-0.56 ALL/m2/year for residential buildings and 12-20 ALL/m2/year for commercial buildings.
Persons subject to property tax
Subject to property tax on agricultural land, on buildings and on construction land will be also the user of the property, which in case does not possess any ownership documentations, is obliged to self-declare the property to the Municipality of its jurisdiction.
Hotel accommodation tax
The tax base of hotel accommodation tax will be the number of nights of accommodation and will vary upon the following categories:
- For 4 to 5 stars hotels, from ALL 105 to 350 per accommodation night per person, depending on the location of the hotel;
- For guesthouses, dormitories, motels or any other accommodation facilities from ALL 25 to 100 per accommodation night per person, depending on the location of the facility.
Before this change, the rate of hotel accommodation tax was 5% of the accommodation price per room, or per person, per each accommodation night.
The new tax varies in the range between ALL 0/year for identification tables not larger than 2m2 incorporated in the building surface up to ALL 90,000 /m2/year for electronic movable or immovable tables installed for promotional purposes in Tirana.
Tariff for occupation of public areas for business purposes
This tariff is calculated as a monthly liability of the taxpayer and the indicative rates vary from ALL 60 to 120/m2/month. The Municipal Council determines the tax rate, the main administration and collection rules.
Tax on impact on infrastructure of new constructions
The tax base and rate of the tax on impact on infrastructure are differentiated based on the categories/purposes of the construction as follows:
- In case of construction of residential buildings or service facilities by construction companies, which are not designated for tourism, industry or public use, the tax rate applicable is between 4 to 8% of the ‘sales price per square meter’ (based on reference market values set by the Instruction of the Council of Minister “On approval of the average construction costs of buildings from the National Housing Agency”, updated annually).
- For constructions other than those mentioned above, the tax rate remains unchanged, i.e. at 1 to 3% of the investment value or at 2 to 4% for Tirana municipality, except for public infrastructure projects (0.1% of the investment value) and buildings under legalisation process (0.5% of the investment value).
Exemption from the reimbursement of excise tax on fuel by-products utilized in oil fields by companies involved in oil exploration and exploitation.