Annual individual income tax declaration for 2014

According to Albanian legislation all Albanian tax residents should submit to the tax authorities their individual annual income declaration at the central tax administration not later than 30 April 2015.

Who is liable?

Individual taxpayers, both residents and non-residents are subject to personal income tax. Resident individuals are taxed on all sources of income in and outside of Albania, while the non individuals are taxed on income generated only in the territory of Albania. An individual is considered to be resident of Albania if he has a permanent home in Albania or if he stays in Albania for more that 183 days in a calendar year irrespective of his citizenship or living interests

What is the taxable income?

The taxable income includes the following:

• Salaries and other remuneration
• Dividend income
• Income from loans or leasing contracts (excluding cases when income is generated from commercial activity)
• Interest, except interest received on treasury bonds and other securities issued by the government
• Capital gains
• Income from games of chance and casinos
• Revenue stemming from copyrights, rights related to copyrights and industrial property
• Capital gains from gifts
• Gross income realized outside of Albania
• Other income

Personal income tax is not payable on these receipts:

• Income received from social and health insurance scheme
• Student scholarships
• Remuneration received in case of diseases or misfortunes
• Income exempted according to international agreements

What is the deductible expense?

The deductible expenses for personal income tax calculation include:

• Voluntary social and health contributions as well as voluntary pension on pension contributions up to a certain limit
• Interest expenses obtained for the purpose of self children or other persons under care
• Items of medical expenses not covered by the social security, deriving from medical services provided to the individual, his/her children or other persons under care

Where to submit the annual income declaration?

As a general rule, the income tax declaration should be submitted to the Regional Tax Directorate of that city where the individual has his/her closest personal and economic relations. However, employed individuals should submit the Tax Directorate where his employee is registered: for example, working in a company which is under the administrative jurisdiction should submit the income declaration to the Regional Tax Directorate of Tirana).

The annual income declaration forms can be accessed at the by following the link below:

http://efiling.tatime.gov.al/cats_public/UserManagement/Registration

The annual income declaration may be submitted in electronically way.

Do you need assistance?

AECO with the long experience in the financial market is pleased to assist everyone who needs to prepare and declare annual income for the year 2014.
How much does it cost?

Preparation and electronic submission of the declaration costs only EUR 55.

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