TIRANA, Aug 27 /ATA/ A new draft law on administrative cooperation in taxation and the exchange of tax information aims to strengthen Albania’s collaboration with EU tax administrations and establish more efficient mechanisms for identifying cross-border economic activities.
The draft law, released for public consultation, aligns Albania’s framework with Council Directive 2011/16/EU, known as DAC 1, most recently amended by Council Directive (EU) 2025/872.
Tax information exchange is at the core of the draft law, covering automatic sharing of data on residents of other EU countries.
The information to be exchanged may include income from employment, remuneration for participation on boards of directors, certain insurance payouts, pensions, ownership and income from immovable property, fees, and dividends not linked to a custodial account.
Draft law requires annual automatic exchange of tax data, within six months of the close of the relevant fiscal year.
The new regime will take effect from the date of Albania’s accession to the EU. Another element of the initiative concerns strengthening tax identification. For tax periods beginning on January 1, 2030, communication of the Tax Identification Number (TIN), issued by the state of residence, will be required, where possible, for certain categories of income.
The draft law assigns the Directorate responsibility for ensuring the accuracy and validity of TINs shared with EU tax authorities.
The draft law also provides for information exchange upon request and spontaneously. In the case of a request from the tax administration of a member state, information of foreseeable relevance for tax administration must, in principle, be supplied within three months, while in certain circumstances the deadline may extend to six months.
Cooperation will also extend to cases where the Albanian tax administration holds information that may be relevant to another state, particularly when there is a risk of tax revenue loss or the use of cross‑border structures to evade fiscal obligations. The legislative initiative further provides for the possibility of simultaneous controls and joint audits between the Albanian administration and the tax authorities of EU member states.
As part of these procedures, authorized officials from another member state may participate in administrative investigations in Albania, including through electronic communication. When an audit is conducted on Albanian territory, foreign officials will operate only in the presence and under the direction of the General Directorate of Taxes.
The initiative is designed to build a more cohesive system of tax collaboration, enabling authorities to follow financial and economic information across multiple jurisdictions.
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