Draft budget 2020/ No tax raise foreseen, profit tax in automotive sector decreased

TIRANA, Nov 8 /ATA/ For 2020 the govt. does not foresee to increase taxes.
According to the 2020 draft budget, the priority will be to implement and measure the effects of fiscal policies adopted in the last 2-3 years in order to consolidate the tax system.

In the coming year there will be changes to procedures, such as those pertaining to Fiscalization law, which is expected to impact the transparency and control of transactions, generating tax liabilities.
Real-time receipt of business-to-consumer transactions and subsequent business-to-business transactions through the use of electronic invoices aims to increase domestic VAT parameters from 8.8% of GDP to 9.1% of it within a span of 2-3 years.

Through the changes to fiscal legislation, the aim is to provide fiscal incentives for developing sectors of our economy, such as the automotive sector, to attract foreign investments in this sector, as well as other social incentives in in education and sport.

The aim is to incentivize the sector of automotive industry reducing the rate of profit tax to 5 % on legal persons exercising economic activity in this industry.

Also promotion of sport, in order to increase its positive impact on society. For this reason, fiscal incentives are proposed for exempting from personal income tax the rewards given to athletes, or sports teams, part of sports federations recognized by the relevant legislation. Also, for legal entities that make annual taxable profit of over 100 million ALL, the amounts sponsored in the field of sports, known as deductible expenses, for the purpose of calculating the profit tax, are deducted up to three times the amount of sponsorship.