Tax Incentives Encouraged Growth in ICT & Agrotourism Sectors

TIRANA, October 4

Tax incentives encouraged Albanian and international entrepreneurs to start new businesses in the ICT sector. Meanwhile, Agrotourism, which is a priority sector for the sustainable development of the rural economy witnessed growth too. These trends were confirmed by Minister of Economy and Finance Anila Denaj during the Investment Council meeting On Investment Potentials and Priority Sectors on Friday.

Minister Denaj said that the government adopted tax incentives that facilitated the development of the Information and Communication Technology Sector. The decision adopted by the Albanian Council of Ministers in December 2018 defined that eight categories of software development companies are subject to a 5% income tax.

Tax Incentives for IT Sector, Income Tax Rate at 5% for 8 Categories of Tech Companies

Further on, the data provided by the Institute of Statistics (INSTAT) confirmed that 742 small companies operating in the ICT sector were established in 2018 in Albania.

Meanwhile, the Albanian legislation defines tax-exempts in the agriculture sector to encourage tech investments in machinery and equipment. They include VAT exempts on agriculture equipment and machinery, processing machinery, and agrotourism. The incentive had an impact on the import of machinery and spare parts as well as on the growth of Albanian agro-processing exports.

Moreover, the Minister said that future goals include a 4% GDP for the next three years, a lower unemployment rate, currently at a record low of 11.5 percent, and fiscal coordination.

Source: Monitor

Photo Credit: Albania Investment Council