Albanian Government announced on 19 March 2020 the plan of measures responding to the situation created from COVID-19 in Albania. The following publications summarizes the main actions in connection to the declaration and payment of taxes, new method of communication with the Albanian tax authorities as well as in implemented order related to the payment of loans by entities and individuals.
2019 CIT declaration and payment
Legal entities and other taxpayers registered for Corporate Income Tax (CIT) purposes would be entitled to submit the Annual Financial Statements of 2019 by 31 July 2020.
Based on the plan of measures, no postponement is introduced for the submission of the annual CIT return for the year ended 2019. Thus, the submission of the annual CIT return for 2019 is still due by 31 March 2020.
The settlement of the annual CIT liability for the year ended 2019 is required no later than:
2020 CIT advance payments
No relief is announced for the payment of the CIT installments for 2020 for the CIT taxpayers having an annual turnover which exceeds ALL 14 million. On the other hand, the CIT advance payments for 2020 for registered taxpayers having an annual turnover of less than ALL 14 million should be paid no later than 31 December 2020.
Other corporate direct and indirect taxes
The deadlines for declaration and payment of value added tax, withholding tax, payroll taxes and contributions and local taxes remain unchanged.
Penalties and interest for late payment
No relief is introduced with regard to the interest and penalties which may be accrued by taxpayers due to late payment of the above listed monthly or annual tax liabilities and contributions as a result of the situation created by COVID-19 in Albania.
Annual Personal Income Tax Return of Individuals
With respect to individuals, no relief or postponement is announced for the annual individual tax declaration and payment of the personal income tax of individuals which remain due by 30 April 2020.
Communication with Albanian Tax Authorities
Since 16 March 2020, the Albanian tax authorities have announced a notification that they will limit the services provided for the taxpayers to avoid spreading of the coronavirus (COVID-19) and encourage the taxpayers to use e-Albania for obtaining tax documents or communicate via e-mails/telephone numbers with the tax officials.
Relieves for borrowings of entities and individuals
Another measure was taken on 17 March 2020 by the Albanian Government and Bank of Albania by issuing a Joint Order allowing the postponement until 31 May 2020 of payment of loan installments. This measure impacts borrowings of entities and individuals facing difficulties during the situation created from the spread of COVID-19. To benefit from this relief measure the entities and individuals should communicate in advance with the lending financial institutions the inability to pay the loan installments due to the spread of COVID-19 situation.
Entry into force
The changes in the Law No.8438 dated 28.12.1998 on “Income Tax”, as amended, are published in the Official Gazette no. 52 dated 26 March 2020.
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