Tirana /November 16, 2015
The Prime Minister Edi Rama announced on Monday in a press conference that the government has decided to cut taxes for small businesses whose annual turnover is less than ALL 5.000.000. This is one of the new measures that will enter in force on January 1st of 2016, with the entering in force of the new fiscal package.
According to Rama, “Businesses that register an annual turnover of no more than ALL 5.000.000 will not have to pay any tax.” During the press declaration, the Prime Minister also declared that tax inspections will be eliminated during the first semiannual of the next year since businesses will be controlled through the electronic system linked to fiscal cases they use.
Small businesses comprise about 85% of businesses in Albania and since the government started an intensive reform against informality on September 1st of this year, small businesses’ representatives have claimed that taxes are causing bankruptcy of their businesses. As for medium businesses with an annual turnover of ALL ALL 5.000.000- ALL 8.000.000, the government will apply a corporate tax of 5%, reducing it by 2.5%, while the income tax remains 15%.
News source/photo credits: ATA