GDT Income Tax Brackets in Albania for 2024

Albania has emerged as a promising investment hub in Southeast Europe, buoyed by a vibrant private sector and several government-led reforms. The country has consistently surpassed its 10-year foreign direct investment (FDI) average and continues to attract significant investments in several sectors including mining, electricity, and real estate.

The tax system in Albania is administered by the official tax body, the General Directorate of Taxes. There is a range of taxes levied, including personal income tax, corporate income tax, value-added tax, withholding tax, excise tax as well as local and national taxes.

The Law on Income Tax provides guidance and support in the form of income tax tables for individuals and businesses. Taxpayers must familiarize themselves with these tax tables and the corresponding income tax brackets and income tax rates, for effective tax planning and to remain compliant with Albanian tax laws.

Here you will learn more about:

• headline tax rates
• personal income tax (PIT) rates
• corporate income tax (CIT) rates
• capital gains tax (CGT) rates
• withholding tax rates for residents and non-residents
• value-added tax (VAT) rates

Headline Tax Rates in Albania

Personal Income Tax (PIT) Brackets for Individuals in Albania for 2024

In Albania, resident individuals are subject to personal income tax for all sources of income. However, non-resident individuals only pay tax for Albania-sourced income. Additionally, there are mandatory social security and health insurance contributions applicable to employers, employees and the self-employed.

Personal Income Tax Due Dates

Corporate Income Tax (CIT) Rates in Albania for 2024

The standard CIT rate in Albania is 15%.

However, an entity with a turnover of ALL$8,000,000 or under during a fiscal year is subject to the simplified profit tax for small business, that is a tax rate of 0.

Corporate Income Tax Due Dates

Capital Gains Tax (CGT) in Albania

Capital gains tax is levied at a rate of 15% in Albania.

Withholding Tax Rates for Residents and Non-Residents in Albania

In general, withholding tax (WHT) is levied on residents and non-residents in Albania. WHT rates may differ depending on the source of income concerned. For example, 15% tax is levied on payments for technical, management, installation or supervisory work. However, the varying rates applicable for dividends, interest and royalties are tabulated below.

Albania has signed 46 double taxation treaties (DTTs) to date and each treaty may result in different WHT rates applicable. A taxpayer may benefit from the provisions of these DTTs.

Value-Added Tax Rates in Albania

Value-Added Tax (vat) Rates in Albania are summarized below with non-exhaustive examples of their application.