The Albanian Parliament has made the following amendments to Law no. 8438 “On Income Taxes”, in force from 11th April 2012.
Albanian resident individuals who generate global annual income of at least 2 million ALL and non-Albanian resident individuals who generate annual income of at least 2 million ALL in Albania are required to prepare and file the personal income tax return.
In addition, Albanian resident individuals who generate annual income up to 1,050,000 ALL and wish to benefit from the deductable expenses have the option to submit their personal income tax return. Deductible expenses are considered the following:
- Voluntary contributions to pension fund schemes, as well as life and health insurance premiums
- Interest on bank loans utilized for the education of dependent family members
- Health care expenses for medical treatment which is not covered by the health insurance
Resident individuals who have generated income from another country which has signed an Double Tax Avoidance Agreement with Albania can credit the tax paid in the foreign country up to the amount provided in the Agreement.
The personal income tax return should be filed not later than 30th April of the subsequent year. Exceptionally, for fiscal year 2011 the deadline for the filing and payment of the personal income tax is 30 September 2012.