The current law dates back to 1998 and during these years there have been changes in the field of international taxation, while Albania has adhered to comprehensive initiatives aimed at countering harmful tax practices (BEPS, MLI), etc.

Also, numerous interventions made in recent years have distorted tax neutrality.
The proposed new law targets all taxpayers and wage earners. The categories that will be exempt from tax will be defined in transitional provisions.

The novelty of the draft law is that it categorizes the income tax into the tax on natural entities, including the individual, the commercial individual and the self-employed individual with the personal income tax; tax on legal entities with corporate income tax.

In the new draft law, personal income which is realized by a natural entity (individual, commercial individual and self-employed individual) and which is subject to personal income tax is divided into: employment income; business income; investment income.

In the proposed draft law, employment income is taxed under a progressive taxation scheme of 13% and 23%.
The tax rate for the annual tax base 0-2,040,000 will be 13% and over 2,040,000 will be 23%.
Meanwhile, tax deductions are applied on the tax base of employment income.

For income from business up to 10 million ALL per year it is provided as an option a simple tax scheme, declaring expenses in a lump sum, without having the obligation to maintain accounting.
/j.p/r.e/sm/