We are looking for a motivated Junior Accountant who is eager to learn and develop in a professional environment, assisting in managing daily accounting tasks for our domestic and international clients.
If you enjoy structured work, are curious about taxes and accounting, and would like to be part of a team that helps businesses grow and stay compliant — this position is for you.
This Draft-Instruction published by the Ministry of Finance on 25/03/2024 with a closing date of 22/04/2024 open for comments defines the criteria and procedures for the implementation of the provisions of the Agreements for the avoidance of double taxation and the prevention of fiscal evasion.
“Double taxation” is when the same income, earned by the same person, is taxed twice: once in the country where the income is realized and once in the country where the taxpayer has his residence. Double taxation arises when both countries claim that, based on the criteria of their domestic laws (which may be different), a natural person or an entity is considered resident in both countries (dual residence) and is subject to the obligation of full tax in both states. As a result of this issue, “Double Taxation Avoidance Agreements” were created .
The Double Taxation Treaty agreement (DTT) contains criteria and rules that determine in which contracting state a natural person or entity will be considered a resident, regardless of the provisions of the internal legislation of the contracting states. Agreements for the avoidance of double taxation allow the elimination of double taxation by determining which of the countries has the right to tax some income of an entity or natural person, or by dividing this right between the two countries, but without burdening the taxpayer with double taxation. These agreements also aim to avoid fiscal evasion through the exchange of information for all natural persons or entities that exercise activity in both countries between which the Agreement was concluded.
Albanian resident tax payers must complete the documentation according to the deadlines specified in the law.
The documentation that proves the implementation of DTT is:
a.The forms according to the established model which contains complete data for the Albanian resident taxpayer, for the tax resident taxpayer in the other contracting state, the type of payment from the Albanian taxpayer (income for the resident taxpayer in the other state).
b. Service contracts with the non-resident company, in the language(s) signed by the parties.
c.Certificate of residence for the supplier (person not resident in Albania) who is resident in the other Contracting State.
d. A summary list of foreign invoices issued by the tax resident in the other country, for which MTD has been applied;
e. List of payments made by the Albanian taxpayer to the taxpayer resident in the other country, for which DTT has been applied.
Deadlines for submitting/uploading documentation in the tax system and penalties.
Pursuant to the law “On tax procedures in the Republic of Albania “, the following deadlines are set for the uploading/submission of supporting documentation by the taxpayer for the implementation of the DTT:
a) The documentation listed above must be uploaded to the electronic tax system/submitted within the calendar year following the year in which the provisions of the DTT-s are implemented. If the electronic tax system does not allow the electronic upload of the documentation, or there are technical problems, the taxpayer submits the requested documentation to the relevant regional tax directorate by official letter on paper or with an electronic carrier (CD).
b) If the taxpayer does not upload the documentation to the system/does not submit it within the deadline set at that time, a fine of 10,000 ALL will be applied to the taxpayer for each month of late submission. This fine is applied up to the following 24 months, after the end of the specified period.
c) If the taxpayer does not submit the documentation even after the 24-month deadline has passed, then the taxpayer loses the right to apply the provisions of the DTT and must pay/return the unpaid taxes or the reduced part of the tax according to the DTT , as well as fines and interests for late payment in accordance with the Law “On Tax Procedures in the Republic of Albania”.
AEcO Business Solutions has created the Tax Newsletter, covering the period from January to December 2023 with the aim of providing both local and international businesses with answers to key questions regarding tax regulations in Albania
AEcO Business Solutions is delighted to announce a significant milestone: we have joined the distinguished ETL GLOBAL group.
Headquartered in Essen, Germany, ETL GLOBAL is a highly respected professional services firm with a legacy spanning over 50 years. The firm is celebrated for its strong emphasis on small and medium-sized enterprises (SMEs) and its comprehensive, integrated approach that seamlessly combines tax, legal, audit, and accounting services. Over the years, ETL GLOBAL has grown into a formidable network, comprising over a thousand seasoned professionals, including tax and legal experts, accountants, auditors, and business consultants.
Our integration into ETL GLOBAL marks a pivotal moment for AEcO Business Solutions. This partnership provides us with access to a vast pool of international expertise and resources, significantly enhancing our capabilities and service offerings. We are enthusiastic about the collaborative opportunities ahead and confident that this alliance will drive our growth and enable us to deliver even greater value to our clients.
We are honored to be part of the ETL GLOBAL family and look forward to the synergies and advancements this partnership will bring. For more information and to stay updated with ETL GLOBAL, we encourage you to connect with them on LinkedIn.
For more information connect with ETL GLOBAL on LINKED IN .
According to decision no. 457 dated 26.07.2023,“For some changes in the Methodology of Determining the Taxable Value of Real Estate “Building”, of the Tax base for Specific Categories, the nature and Priority of Information and Data for the determination of of the Tax Base, as well as of the Criteria and Rules for the Alternative Assessment of the Tax Obligation as amended”, the average reference prices for the sale and purchase of buildings for residential purposes in Albania have been changed drastically in some of the territory areas, especially for the Municipality of Tirana.
The biggest increase of 76% compared to 2019 was experienced by “area 7/4”, which includes the roads from the “New Ring”, the “Flour Factory”, the former Aviation Field and Yzberisht. This was followed by a very high increase for the Area of Farka (73%), Petrela and Peza (60%) and further according to the following table:
The average reference prices for the sale and purchase of buildings for residential purposes are expressed in Lek/square meter according to the cities in Albania and according to the relevant areas in the Municipality of Tirana, where the most significant changes have occurred.
As a result of the increase in the sale and purchase average prices of buildings, the minimum reference prices for rental contracts of businesses also increases to the same extent, for which, the businesses will have to declare and pay a higher withholding tax for rent, for those cases where they have concluded a rental contract with a price very close to the minimum allowed by law from the previous DCM.
All entities should review the rent contracts and WHT declarations on Rent to check if they are affected by the new reference prices of buildings as per their territorial area.
AEcO Business Solutions
For more information, please feel free to contact us at [email protected] or subscribe to our website to receive the latest amendments happening in the field of tax and more.
AEcO Business Solutions has created the Tax Newsletter, covering the period from January to December 2022 with the aim of providing both local and international businesses with answers to key questions regarding tax regulations in Albania
AEcO Business Solutions has created the Tax Newsletter, covering the period from August to December 2021 with the aim of providing both local and international businesses with answers to key questions regarding tax regulations in Albania.
AEcO Business Solutions has created the Tax Newsletter, covering the period from January to July 2021 with the aim of providing both local and international businesses with answers to key questions regarding tax regulations in Albania.
