0% tax on profits for small businesses; Prime Minister explains

Tirana, November 17, 2015

After the announcement made in a press conference on November 16^th that businesses with an annual turnover no more than ALL 5,000,000 the Prime Minister Edi Rama declared that “the historic decrease of taxes for small businesses is a direct result of the reform against the informality and its positive results within a few months.”

On November 16^th, Prime Minister Rama held an open meeting with representatives of small businesses and announced the decision of the government to reduce the tax on profits to 0 for small businesses and the reduction of this tax by 33% for businesses with an annual turnover from ALL 5 million to ALL 8 million.

According to Rama, “currently we have 83,300 registered small businesses, self employed individuals or families which will benefit from this significant reduction of taxes and they will have to pay only the health and pensions insurance”, while there are 15,900 businesses with an annual turnover from ALL 50 million to ALL 80 million whose tax on profit is reduced to 5%.

Rama added that the only legal obligation small businesses have is to keep the tax vouchers for every purchase and to give tax voucher to every buyer, which he considered also as a moral obligation and as a big support to the reform against the informality.

News source/photo credits: ATA