Albanian Govt Mulls Over Tax Incentives for Automotive Industry

Albanian Govt Mulls Over Tax Incentives for Automotive Industry

TIRANA, November 13

Albanian authorities plan to increase the country’s ability to attract foreign investment in the automotive sector through tax incentives. Hence, juridical individuals exercising an economic activity in the automotive industry will be subject to a five percent tax on profit.

The relation for the draft law on some changes to the law on Income Tax that is part of the Fiscal Package 2020 defines that the Albanian automotive industry is new and in its first stages. (Find draft-law relation below)Therefore, it’s difficult to compete with the capacities and potential of the regional automotive sector.
Moreover, the report points out that countries like North Macedonia and Serbia have a well-established automotive industry and now they focus on strengthening their expertise and technical know-how.

“In such conditions, fiscal incentives for the automotive industry aims not only at increasing Albania’s competitiveness in the region but also at attracting more investments in this sector,” the report points out.
Moreover, it says that tax cuts would help to create favorable conditions to further improve the business environment for the Albanian automotive sector.

Automotive tax incentives

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Source: parlament.al


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