Albania: Albanian parliament amends Law on Tax Procedures

International Tax Review is part of Legal Benchmarking Limited, 1-2 Paris Garden, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Albania: Albanian parliament amends Law on Tax Procedures

ndreka.jpg

Dorina Asllani Ndreka

In November 2016, the Albanian parliament approved a large number of changes in one of the main laws regulating the activity of the tax authorities in the country, the Law on Tax Procedures.

The amendments affect several aspects of the tax authorities' procedures and mainly focus on, among other issues, transparency, increasing electronic communication between taxpayers and tax authorities, improving fiscal consequences for passive taxpayers, deregistration procedures, facilitating instalment payments already provided for by the law, self-correction of the tax declarations and the appeal process.

The amending law entered into force on December 1 2016.

As far as transparency is concerned, to guarantee a transparent and impartial tax administration, the changes oblige the general tax director to make public any decision taken within five days of its issuing. This is to be applicable to decisions that taxpayers request about the official position of the tax administration regarding the interpretation and implementation of the law in the specific circumstances of the taxpayer. The taxpayer data, however, are to be kept confidential.

Another step towards transparency is also the obligation of the general tax directorate to publish (on a six-month basis) informative bulletins that will include final decisions of the Administrative Court of Appeal, Supreme Court and Constitutional Court, regarding tax issues, in order to inform the taxpayers and to unify the practices.

An additional important change that the law has introduced is the establishment of detailed and specific rules about the instalment tax payments procedure. In case the taxpayer faces financial difficulties, which prevent him from meeting his tax obligations on time, he is allowed to conclude an agreement for the payment through instalments. The taxpayer must demonstrate his financial inability to pay the tax obligation in full, and show that despite the financial issues, the company he represents will be able to comply with its legal obligations in the future.

The instalment payment agreement is done in writing, within 10 calendar days from the request submission. This agreement can be concluded only in cases where the taxpayer agrees to settle immediately at least 20% of the tax obligations, for which the agreement is concluded. The tax authorities can stipulate instalment agreements on tax obligations regarding tax assessments performed under Article 68 of the Tax Procedure Law, or self-declared tax obligations, with the exception of tax obligations that are withheld by the taxpayer, including social and health insurance contributions. In case the tax authorities have initiated the compulsory collection of the tax obligations, the mortgage or any other legal enforcement on the assets of the taxpayer shall not be removed. However, the taxpayer that has concluded an instalment agreement has the right to request the withdrawal of the order to seize bank accounts. The initiation by the tax authorities of the mandatory auctions of the taxpayers' assets, in order to achieve the legal enforcement of the tax obligations, impedes the conclusion of the instalment agreement.

The instalment payments option is not a new provision, but the new law gives specific details, making it more applicable in practice. If this method is applied on a large scale, it will help taxpayers that are in difficult financial situations and will increase the likelihood of tax collection.

Dorina Asllani Ndreka (tirana@eurofast.eu)

Eurofast

Tel: +355 (0) 42 248 548

Website: www.eurofast.eu

more across site & shared bottom lb ros

More from across our site

Veteran Elizabeth Arrendale will lead the new advisory practice, which will support clients with M&A tax structuring, post-deal integration, and more
MAP cases keep increasing, and cases closed aren’t keeping pace with the number started, the OECD’s Sriram Govind also told an ITR summit
Nobody likes paperwork or paying money, but the assertion that legal accreditation doesn’t offer value to firms and clients alike is false
Ryan hopes the buyout will help it expand into Asia and the Middle East; in other news, three German finance ministers have called for a suspension of pillar two
SKAT, which was represented by Pinsent Masons, had accused Sanjay Shah and other defendants of fraudulent dividend tax refund claims
TP managers must be able to explain technical issues in simple terms, ITR’s European Transfer Pricing Forum heard
Prudential had challenged HMRC over VAT group relief; in other news, Donald Trump unveiled timber and wood tariffs, and the European Commission published a ViDA implementation strategy
Australia’s CbCR rules have ‘widespread support’ and do not put American companies at a competitive disadvantage, the FACT Coalition said
Baker McKenzie advised two of the member firms involved, while several advisers provided transaction counsel to US-based Grant Thornton Advisors
Foreign remittance requirements put additional administrative burden on Indian law firms and strain their relationship with foreign associate firms, according to practitioners
Gift this article