Changes in the Law on Local Taxes

Changes in the Law on Local Taxes

This section of issue 2 of KPMG’s Tax News for 2019 summarises the main amendments to the Law on Local Taxes effective from 1 January 2019.


Infrastructure tax 

The category of tax on infrastructure is extended for buildings used for living purposes in mounting areas. The infrastructure tax for such buildings will be from 0% to 3% of investment value. The Municipal Councils will determine the mounting areas to which the above tax on infrastructure will apply.  

Local tariffs

Local tariffs will be applicable for cable phone grids, telecommunication or informatics service, only when the network used is composed by pipes, channels, etc., which are built and owned by local government units. The revenues generated through collection of such tariffs will be used to maintain the costs of maintenance of such a network.

Abolished appendixes

The following appendixes of the current Law on Local Taxes are abolished:

  • Appendix no. 4 Tax on annual registration of road transport vehicles
  • Appendix no. 5 Tax on small business
  • Appendix no. 6 Indicative level of tax for occupation of public spaces  

Entry into force

Law no. 95/2018 dated 3 December 2018 on Addition to Law No. 9632 dated 30 October 2006 on Local Taxes is published in the Official Gazette No. 187 dated 28 December 2018 and becomes effective from 12 January 2019.

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