The growth reflects improved economic activity and better performance of the tax administration.

Higher corporate profits is mainly linked to improved profits from private companies, driven by increased domestic consumption and expansion in key sectors such as construction, tourism, and services, contributed to the rise. Efforts to reduce tax evasion and expand formal business participation also played a role.

For the full year, corporate tax revenues are projected to reach 65.7 billion lek — up 10% from 2024.

Authorities plan to tighten controls on tax declarations through risk-based analysis and new systems aimed at curbing tax avoidance.

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According to the financial indicators of the Ministry of Finance, the state budget revenue collections from corporate tax also increased 38.7% or 5.8 billion lek more than planned during the reviewed period.

The increase in the revenues collected from corporate tax is mainly driven by higher profits generated by businesses following a surge in prices, triggered by the crisis, the anti-informality actions launched by the tax administration and the timely payment of instalments by taxpayers, following significant delays a year ago due to the pandemic.

The service and construction sector recorded the highest growth in terms of corporate income tax collections compared to the same period of the previous year.

Corporate tax is subject to legal entities and partnerships registered for VAT, legal entities, as well as other partnerships among individuals established or structured under a foreign law and that operate in the territory of the Republic of Albania.

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