Page 8 - CEE Tax Guide 2025

Albania

Forvis Mazars sh.p.k.
Rr. Emin Duraku,Pall.
“Binjaket”, Nr.5, Tirana Albania
Phone: +355 (0) 42 278 015
www.forvismazars.com/al

Corporate taxes and other direct taxes December 2026 will be exempt from CIT for the first
10 years of their operation.
The standard Corporate Income Tax is assessed
on a current-year basis at the rate of 15%: Fiscal losses may be carried forward for up to five
Reduced Corporate Income Tax Rate are applicable consecutive years. The law does not provide for
for the specific industries; consolidated tax returns. Each company forming
part of a group must file a separate tax return.
• 5% for the entities operate in software and
IT development until December 31, 2025; The gross amounts of interest, royalties, dividends,
• 5% for the automotive industry until and shares of partnerships’ profits paid to non-
December 31, 2029; resident companies are subject to a withholding
• 5% for entities which perform their tax of 15%, unless a Double Taxation Treaty (DTT)
activities in accordance with the Law provides for a lower rate. Albania has established
on Entities of Agriculture Collaboration until agreements with 43 countries. 41 of these have been
December 31, 2029; ratified and are currently in force.
• 5% for agritourism industry until December 2029; The customs duty rates range between 0% and
15%, depending on the type of goods and the
Any entity which operates a 4- or 5-star hotel and country of the origin. Local taxes consist of different
that acquires the status of special investor until categories of taxes.

VAT and other indirect taxes
Transfer pricing in Albania
Arm’s length principle Since 1998 Any person (entity or individual) that makes
supplies in the course of that person’s independent
Documentation liability Since 2014 economic activity is required to pay VAT. For
APA Since 2014 domestic supplies and for services subject to the
reverse-charge mechanism, the Albanian taxable
Country-by-Country Since 2019
liability person will always be liable to account for the
Master file-local file Since 2014
(OECD BEPS 13) VAT options in Albania Applicable / limits
applicable Distance selling No

Penalty Call-off stock No
lack of documentation ~ Delayed submission VAT group registration No
of documentation –
EUR 100 / for each Cash accounting – yearly No
month of delay. amount in EUR (approx.)
tax shortage 0.06% on a daily basis Import VAT deferment No
(not more than 365 days) Local reverse charge Services from non-resident
+ late payment interest. entities that are taxable
in their own country.
Related parties 50% > Holding or controlling
50% or more of shares, Option for taxation
or directly or indirectly.
letting of real estate
Safe harbors No –
supply of used real estate No
Level of attention paid 8/10
by Tax Authority VAT registration EUR 100,000/year
threshold
Central and Eastern European tax guide 2025 Forvis Mazars 8