Personal Income Tax
The tax on personal income is calculated on the incomes of individuals.
- The resident individuals are subject to the tax on personal income during the tax period, for all sources of incomes.
- The non-resident individuals are subject to the tax on personal income during the tax period, for sources of incomes, arising in the territory of the Republic of Albania.
The taxable incomes:
- Salaries and other remunerations related to current labor relationships;
- Incomes derived from the profits of a partner or shareholder in the company;
- Revenues from bank interests or bonds;
- Incomes derived from copyright and intellectual property;
- Incomes from loans and leases;
- Proceeds from the transfer of the right of ownership of immovable property;
- The amount of income from games of chance and casinos;
- Incomes derived from the difference between the sales price and the purchase price of the shares or stocks that a shareholder or partner owns and sells to another person;
- Revenues in the form of cash to the increase of capital deriving from sources outside of the company, which are not taxed earlier, while they have been subject to tax and that are not accompanied by official documents proving the origin of these funds. The procedures are determined with the Guideline of the Minister of Finance;
- Other incomes, not identified on the presented forms.
The income from employment relationship is taxed under the following table:
Tax rate on salaries:
|0 – 30,000||0|
|30,001-130,000||13% of the amount over 30,000 ALL|
|130,001||13,000 ALL + 23% of the amount over 130,000 ALL|
Any employer, who pays the employee a salary or remuneration, withholds the tax on the personal income and transfers the tax withheld in favor of the tax authorities, not later than the 20th of the next month of the payment.