TOP Analysis, Prognoses and News about Greek - Albanian Relations and the Region.
Monday, December 2, 2013
Albania, New income tax law 02/12/2013
Every monthly salary above 90.000 ALL will have fewer taxes that now.
Those who are paid more than that, will pay more than before. This
includes not only monthly salaries, but also rents and other activities.
The Ministry of Finances published the progressive tax scheme that will
be applied in 2014.
The Ministry of Finances has
decided for the income tax progressive scheme, which will apparently be
with four levels. People with monthly income under 30.000 will pay no
tax, same as it is now. Monthly salaries between ALL 30.000 to 100.000
will pay 15%; 10.000 to 150.000 20%, and over 150.000 is 25%.
monthly salaries than ALL 90.000 profit from the tax decrease. There’s
no change for taxes at 90.000, while those over this will pay more
taxes. Salaries over 150.000 will pay even more. Salaries of 250.000
monthly will pay 20.000 more every month.
During the electoral
campaign, the now ruling party promised to reduce taxes for 96% of
citizens. According to the Ministry of Finances, in 2012 there were
35.000 individuals pay more than 90.000, and they are 8% of the
This tax system includes not only salaries, but all
other incomes, such as rents or other activities. The number of affected
people is bigger than this.
On the other hand, the new tax
system damages individuals and businesses who pay taxes regularly and
who have declared everything, and favors tax evaders, employers who
declare smaller salaries than what they actually pay to their employees,
a phenomenon that is widely spread in the Albanian job market. Experts
say that exactly due to this effect, the progressive tax pressures
individuals even more to tax evasion.