Tirana / November 23, 2015
According to the Prime Minister Edi Rama, the decision to reduce to 0 the tax on profits for small businesses with an annual turnover no more than $50,000 will boost the employment in the upcoming months. Rama explained the effect of the decrease of taxes in a graph by comparing the taxes and the profit of small businesses in the past two years.
The graph explains that a small business with an annual turnover of ALL 2 million used to pay an amount of ALL 4800 as a tax on profit in 2013, while during this year this business has paid ALL 2500 as tax on profits. With the new decision taken by the government to reduce the tax on profits, this business will have to pay no tax on profits starting from January 1st, 2016.
However, the reduction of tax on profits to 0 has been opposed by other the Social Movement for Integration party, the governing ally of the Socialist Party (headed by Prime Minister Edi Rama).
News source/photo credits: ATA