Companies who fail to declare their incomes at the tax administration, will be penalized

Foreign companies’ branches in Albania will be subject to a tax audit for every money transaction made between company branches in Albania and their parent company in another state. Their control has not been easy to be done by the tax administration, since price transferring is one of the most sophisticated legislations in the world.

The lack of information and knowledge or the needed experience by the Albanian authorities has been a barrier in making a detailed tax audit for international company branches in country and successfully implementing this legislation.

The Albanian government has approved the needed legislation which foresees that international companies who fail to declare their incomes at the tax administration will be penalized. The latest changes in the legislation provide a transparent declaration of incomes from these companies, since all companies who make money transaction between them, will be subject to tax audit.

News source: Scan TV
Photo credits: Simon Cunningham (Flickr)