All material subject to strictly enforced copyright laws. © 2022 ITR is part of the Euromoney Institutional Investor PLC group.

Albania: Albania changes Law on Hydrocarbons

intl-updates-small.jpg
ndreka.jpg

Dorina Asllani Ndreka

By adopting Law No. 6/2017, the Albanian Parliament amended the 1993 Law on Hydrocarbons (Exploration and Production). These latest changes are intended to make the law more easily applicable and to bring it closer to the acquis of the EU. The amendments also focus on safeguarding these important public assets.

Law No. 6/2017, dated February 2 2017, includes several definitions that were not originally included in the 1993 law and its previous amendments. Some of the most interesting ones include the definition of the license agreement, which is the authorisation provided by the ministry responsible for exploration, development and the production of hydrocarbons in the contract area. This license includes the possibility to transfer the rights wholly or partially to a local or foreign legal person, or to an international financial institution. However, if it deems it necessary for matters of national security, the ministry may reject the transfer of the hydrocarbon agreement quotas.

It is worth noting that a hydrocarbon agreement may include specific clauses about the stability of the tax regime. A similar provision existed in the previous version of the law, but the new one provides the following conditions:

  • These clauses cannot exceed a term of 12 years from the date of the production's commencement;

  • The regime of stability excludes the laws and regulations related to national security, labour relations, protection of the nature and the environment, protection of human health and international treaties; and

  • The tax regime's stability provision does not affect the calculation and payment of applicable taxes by contractors under the tax legislation in force.

The stable tax regime, which is provided for under the new Law on Hydrocarbons, is defined to be the current one, including the tax rates, applicable forms, terms of payments and all other tax aspects as laid out in the current tax legislation in force.

The new law is effective from March 7 2017, but it will only be applied to new hydrocarbon agreements and will exclude those already signed and those that had started the process of negotiation before that date.

Dorina Asllani Ndreka (tirana@eurofast.eu)

Eurofast

Tel: +355 (0) 42 248 548

Website: www.eurofast.eu

more across site & bottom lb ros

More from across our site

This week Brazil’s former President Luiz Inacio Lula da Silva came out in support of uniting Brazil’s consumption taxes into one VAT regime, while the US Senate approved a corporate minimum tax rate.
The Dutch TP decree marks a turn in the Netherlands as the country aligns its tax policies with OECD standards over claims it is a tax haven.
Gorka Echevarria talks to reporter Siqalane Taho about how inflation, e-invoicing and technology are affecting the laser printing firm in a post-COVID world.
Tax directors have called on companies to better secure their data as they generate ever-increasing amounts of information due to greater government scrutiny.
Incoming amendments to the treaty could increase costs on non-resident Indian service providers.
Experts say the proposed minimum tax does not align with the OECD’s pillar two regime and risks other countries pulling out.
The Malawian government has targeted US gemstone miner Columbia Gem House, while Amgen has successfully consolidated two separate tax disputes with the Internal Revenue Service.
ITR's latest quarterly PDF is now live, leading on the rise of tax technology.
ITR is delighted to reveal all the shortlisted firms, teams, and practitioners for the 2022 Americas Tax Awards – winners to be announced on September 22
‘Care’ is the operative word as HMRC seeks to clamp down on transfer pricing breaches next year.
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree