Mar
18
Albania - A Tax Havens country
Filed Under Tax Haven Country List
Tax Havens country Albania:
As of January 1st, 2008, Albania implemented the 10% flat tax system, one of the lowest in Europe,” Albanian Prime Minister Sali Berisha told a business community meeting in late March. Corporate taxes, currently at 20%, are to be slashed in half. Social security contributions from businesses will likewise be capped at 10%. The government of Albenia will widen the taxable base and simplify tax administration, while also making Albania an easier place to invest.
Finance Minister Ridvan Bode told the press “The flat tax helps eliminate the potential arbitrage between corporate tax, dividend taxes and the income tax,”. This changes will lead to a more streamlined fiscal system. VAT and other taxes will also be gradually reduced for investors.
Albania Standard rate of corporate tax is 20%. Company can carry forward losses for 3 years. But this does not apply when there are changes of more than 25% in ownership. The non-resident individuals are taxed on their Albanian sourced income.
Salaries and other payments* are subjected to income tax rates as given below:
1.Taxable monthly income (0-14,000 Lek) : Tax (0 + 1% of the amount over 0 Lek)
2. Taxable monthly income (14,000 - 40,000 Lek) : Tax (140 Lek + 5 % of the amount over 14,000 Lek)
3. Taxable monthly income (40,000 - 90,000 Lek) : Tax (1,440 Lek + 10 % of the amount over 40,000 Lek)
4. Taxable monthly income (90,000 - 200,000 Lek) : Tax (6,440 Lek + 15 % of the amount over 90,000 Lek)
5. Taxable monthly income (200,000 - above ) : Tax ( 22,940 Lek + 20 % of the amount over 200,000 Lek)
