Obligated entities to submit the Individual Annual Income Statement
The General Directorate of Taxes has recently brought to attention a very important obligation for individuals in the Republic of Albania who have relatively high incomes. They must submit an individual statement of annual income. The persons who have the obligation to submit this statement are:
- Individuals resident in the Republic of Albania who during 2020 have realized income, from all sources, inside and outside Albania, in the amount of 2,000,000 (two million) ALL and more.
- Non-resident individuals, who realize taxable income, with source in the Republic of Albania, in the amount of 2,000,000 (two million) ALL and more.
- Recently, this obligation is also held by resident or non-resident individuals, who have been employed by more than 1 (one) employer (double-employed persons) despite the fact that their total income during this calendar year is below 2,000,000 ( two million) ALL.
The incomes to be declared
Taxable income, which must be declared by individuals, subject to declaration, are:
- Gross salary income or bonuses from employment relationships
- Gross dividend income
- Gross rental income
- Capital gain from the sale of immovable property owned by the declarant
- Gross income from bank interest
- Capital gain generated by investments in securities or real estate
- Gross winnings from lotteries or other games of chance.
- Gross income from intellectual property, licenses, exclusive rights and other assets, which consist only of rights and have no physical form.
- Capital gain from donation.
- Gross income realized outside the territory of the Republic of Albania.
- Other gross income not mentioned above
The deadline for submitting the Individual Annual Income Statement is April 30, 2021. Payment of the difference between the Accrued Value and the Value Paid during the year, must be paid by the respective payment order, within this date.
All individuals who do not meet this obligation within the deadline will have the following penalties:
5000 Leke – Individe
10000 Leke – Business