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Albania COVID-19: Financial subsidy for the salaries of certain categories of employees and taxpayers

Albania COVID-19: Financial subsidy

On 27 March 2020 Albanian Government approved the Decision No. 254 laying down the procedures and the categories of taxpayers and employees entitled to benefit from the financial subsidy in connection to the outbreak of COVID-19 in Albania. This decision will be effective starting from 1 April 2020 and would be implemented for a period no longer than 3 months from the date of its entry into force.

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Financial subsidy levels and beneficiaries

Financial subsidy would be available to the following categories of individuals:

  • Employees working for legal entities or sole entrepreneurs registered for CIT or as small businesses and having realized an annual turnover not exceeding ALL 14 million during 2019. Employees included under this category would be supported by payment of the minimum salary of ALL 26,000 per month. Double employed individuals shall benefit only one payment regardless of being simultaneously in two payroll lists.
  • Self-employed individuals realizing an annual turnover not exceeding ALL 14 million and their family members working against no payment in the same business would be entitled to benefit the minimum salary of ALL 26,000 per each person.

How to apply?

The application should be completed in the Albanian portal for governmental electronic services www. e-Albania.al by the taxpayer registered as a legal entity or sole entrepreneur on behalf of the employees. Self-employed individuals are required to apply for themselves and for their family members working against no payment in the same business activity.

The application should include details on the tax identification number of the applicant and personal data (identification of the person, personal number, bank name and bank account details) of the beneficiaries being employees/self-employed individuals/unpaid family members. 

When the financial subsidy is to be paid?

The Albanian tax authorities will verify the data entered by each applicant to confirm whether the criteria stipulated in the decision are met regarding the activity continuation, declaration of employees, payroll taxes and contributions, as well as the revenue realized during 2019.

The verification of the tax authorities should be completed within the first 10 days of the following month. On-site visit investigations may be performed to confirm whether the applicants (legal entities or self-employed individuals) have suspended the business activity due to the situation created from COVID-19 in Albania and the instructions of the Ministry of Health and Social Protection.

The Decision does not indicate the deadline for the tax authorities to instruct the payment to individuals entitled to benefit the financial aid. However, it may be concluded that upon performing the required verifications the tax authorities should instruct the General Directorate of Treasury to transfer the respective amounts to the beneficiaries.

Entry into force

The Decision No.254 dated 27 March 2020 is published in the Official Gazette no. 53 dated 28 March 2020 and its provisions become effective from 1 April 2020.

© 2020 KPMG Albania Shpk, an Albanian limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

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