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BUSINESS ENVIRONMENT | albanı
Albania: Business Environment
In this page: Accounting Rules | Tax Rates | Intellectual Property | Legal Framework | Standards | Business Practices
Accounting Rules
- Tax Year
- The fiscal year in Albania is the calendar year.
- Accounting Standards
- Since 1 January 2006, a new law on accounting and financial statements has been adopted. Albania
- now uses the international financial standards (IAS and IFRS).
- Accounting Reports
- Accounting reports must be in Albanian and figures must be in Leks (ALL). The report must include
- the balance of payments, the assets and liabilities of the company, and an annex describing general
- accounting recommendations. For more information see Investment in Albania 2009.
- Publication Requirements
- National Accounting Standards (NAS) and International Financial Reporting Standards (IFRS) apply for
- certain companies, effective January 1st, 2008. Financial Statements must be submitted annually. For
- more information see the National Center for Business Registration.
- Professional Accountancy Bodies
- IEKA , Instituti i Ekspertëve Kontabël të Autorizuar të Shqipërisë (Albanian Institute of chartered
- accountants and auditors).
- IKM , Instituti i Kontabilisteve te Miratuar
- Certification and Auditing
- The audit of the annual financial statements by chartered individual auditors or auditing companies is
- mandatory for:
- - Companies that apply the IFRS, irrespective of their legal form;
- - Joint stock companies that apply the National Accounting Standards for financial reporting;
- - Limited liability companies that apply the NAS at certain conditions.
- For more information see Investment in Albania. You can also contact chartered individual
- auditors: Tonnuci and Partners, Wolftheiss, KPMG,Deloitte, Ernst & Young, Boga & Associates.
- Accounting News
- UNDP: Albanian accounting system
Tax Rates
Consumption Taxes
- Nature of the Tax
- TVSH (VAT)
- Tax Rate
- 20%
- Reduced Tax Rate
- Exports and international services are not subject to VAT.
- Providing goods and services linked to financial activities and financial transactions are exempt from
- VAT. Medicines and medical equipment are also exempt.
- Companies are subject to VAT when their annual turnover is more than 5 million ALL (EUR 40,000).
- Goods imported and intended for re-export benefit from a temporary import regime and are exempt
- from VAT. A company subject to VAT can request a refund of its VAT credit in the following conditions:
- - The Company must have accumulated VAT credit over at least six consecutive months;
- - The total amount to be refunded must be over 400,000 ALL (EUR 3,200).
- Other Consumption Taxes
- Excise duties are also levied on tobacco (60%), alcoholic drinks (50%), mineral waters (5%) and fuels
- (50%).
Learn more about Service Providers in Albania on Globaltrade.net, the Directory for International Trade
Service Providers
Corporate Taxes
- Company Tax
- 10%
- Small businesses having a turnover between ALL 2 and 8 million pay a simplified profits tax. If the
- annual turnover is below ALL 2 million, it will be characterized as an individual income tax.
- Tax Rate For Foreign Companies
- The Albanian tax regime differentiates between residents and non-residents. Residents are taxed on
- all their income. Non-residents are only taxed on their Albanian income.
- Capital Gains Taxation
- The tax rate on company profits is 10%.
- Main Allowable Deductions and Tax Credits
- Small companies are not subject to VAT. Double taxation is avoided through tax treaties. Occasional
- tax relief is granted for selected projects (investments channeled to public services, infrastructure
- projects, tourism, oil industries); depreciation and depletion. For more information see the IFC
- page on taxes in Albania.
- Other Corporate Taxes
- There is a 10% tax on dividends, shares, interest, payment of copyright and royalties, insurance,
- financial, management and technical services and the payment of contract workers; real property tax,
- 10% transfer tax.
Country Comparison For Corporate Taxation
| Albania | Eastern Europe & Central Asia | United States | Germany | |
| Number of Payments of Taxes per Year | 44.0 | 28.0 | 11.0 | 9.0 |
| Time Taken For Administrative Formalities (Hours) | 357.0 | 260.0 | 175.0 | 207.0 |
| Total Share of Taxes (% of Profit) | 38.7 | 40.5 | 46.7 | 46.8 |
Source: Doing Business - Last Available Data
Individual Taxes
Tax Rate
| Income tax | 10% |
| From ALL 0 to 10,000 | 0% |
| Over ALL 10,001 | 10% |
- Allowable Deductions and Tax Credits
- The minimum monthly taxable income is ALL 10,000. Deductions are granted for medical expenses,
- insurance and pension annuities and student scholarship.
- Special Expatriate Tax Regime
- Law # 8313 of 26 March 1998 on taxation of natural persons applies to Albanian and foreign natural
- persons, whether they are resident or not. Resident natural persons are subject to tax on all income
- earned both in Albania and abroad. Non-resident persons are subject to income tax, only on income
- earned on Albanian soil, unless a bilateral fiscal convention with the foreign national's country
- provides otherwise
- Countries With Whom a Double Taxation Treaty Have Been Signed
- See the list of the conventions signed.
- Withholding Taxes
- Dividends: 10%; interests: 10%; royalties: 10%.
Sources of Fiscal Information
- Tax Authorities
- General taxation directorate
- Other Domestic Resources
- National registration center
- Albanian customs
- Albanian tax system (World Bank website)
- Federation of International Trade Associations
Intellectual Property
- National Organizations
- The ALPTO is the Albanian Institute for patents and trademarks. The ALPTO depends on the Ministry
- of the Economy, Trade and Energy. Copyright is managed by the Ministry of Culture and Youth.
- Regional Organizations
- Albania has an agreement with the European Union on patents.
- International Membership
- Member of the WIPO (World Intellectual Property Organization)
- Signatory to the Paris Convention For the Protection of Intellectual Property
- Membership to the TRIPS agreement - Trade-Related Aspects of Intellectual Property Rights (TRIPS)
National Regulation and International Agreements
| Type of property and law | Validity | International Agreements Signed |
| Patent Law N°7819 of 27 April 1994 | 20 years | Patent Cooperation Treaty (PCT) |
| Trademark Law n°7819 | 10 years, renewable once. | Trademark Law Treaty Protocol Relating to the Madrid Agreement Concerning the International Registration of Marks |
| Design Law n°7819 | 5 years, renewable every 5 years for a total duration of 15 years. | |
| Copyright Law n°7564 | 70 years after the death of the author. | Berne convention For the Protection of Literary and Artistic Works Convention for the Protection of Producers of Phonograms Against Unauthorized Duplication of Their Phonograms Rome ConventionFor the Protection of Performers, Producers of Phonograms and Broadcasting Organizations WIPO Copyright Treaty WIPO Performances and Phonograms Treaty |
| Industrial Models Law n°7819 | 10 years |
Legal Framework
- Independence of Justice
- The constitution provides for an independent judiciary. However, the judiciary, along with law
- enforcement agencies, remains inefficient and prone to political influence.
- Equal Treatment of Nationals and Foreigners
- The judiciary cannot guarantee an impartial trial for foreign nationals.
- The Language of Justice
- The judicial language is Albanian.
- Recourse to an Interpreter
- An interpreter can be arranged.
- Sources of the Law and Legal Similarities
- The main source of the law is the constitution adopted by popular referendum in November 1998.
- Albania's legal system is similar to that of other European countries. The Supreme Court is the
- highest appeal authority in the country. Albania has not accepted the obligatory jurisdiction of
- the ICJ.
- Checking National Laws Online
- Library of Congress
- World News Report
- National Standards Organizations
- DPS, General Directorate of Standardization
- Integration in the International Standards Network
- The General Directorate of Standardization (DPS) is a member of:
- ISO: the International Organization for Standardization
- IEC: the International Electrotechnical Commission
The DPS is affiliated to: - CEN: the European Committee for Standardization
- CENELEC: the European Committee for Electrotechnical Standardization
- Classification of Standards
- The DPS: the General Directorate for Standardization is an institution associated with the Ministry of
- the Economy, Trade and Energy. Except in the telecommunications sector, the DPS is the official
- organization for standardization. The standards listed by this institution are: EN, ISO, IEC, ECE,
- CODEX and JET.
- Online Consultation of Standards
- Consult the list of the standards.
- Certification Organizations
- DPS General Directorate for Standardization
Business Practices
- General Information
- Best country reports
- 2009 Guide to doing business in Albania
- Opening Hours and Days
- Most Albanian stores are open from Monday to Friday, from 8 am to 5 pm and occasionally open on
- Saturday morning.
- Administrations are usually open from Monday to Thursday, from 8 am to 5 pm, and on Friday from 8
- am to 2 pm. There is no law defining the opening times of stores, and many will therefore stay open
- all weekend.
Public Holidays
| New Year | 1 January |
| New Year | 2 January |
| Nevruz festival (Spring festival) | 22 March |
| Catholic Easter | 12 April |
| Orthodox Easter | 19 April |
| Labor Day | 1 May |
| Lesser Bajram (end of Ramadan) | 21 September |
| Beatification of Mother Teresa | 19 October |
| Greater Bajram | 27 November |
| Independence Day | 28 November |
| National Liberation Day | 30 November |
| Christmas Day | 25 December |
- Holiday Compensation
- Generally, when a public holiday falls on a week end, either the Friday or the Monday is taken in
- compensation.
Periods When Companies Usually Close
| Christmas period | Between 24 December and 3 January |
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