This poses new challenges, both within their home country’s boundaries and also abroad: be it in the Balkans, the CEE region or on a more global scale. For multinationals this has led to an increase in the size and scope of their global workforce as well as to a need for the latter’s effective management. For local companies, it has become a challenge to improve efficiency of local activities and cost effectiveness in order to protect their market share from global entrants.

These factors have led to the destruction of the common misconception that personal income tax is only about preparation of tax returns and calculation of monthly tax liabilities on salary payments. Meeting compliance obligations is of course the primary target of companies but a more effective and efficient method may be sought by:

• Outsourcing this function (payroll and tax return preparation) to an experienced outside provider who has the capacity to ensure full and timely compliance with the local legislation, while allowing 
  the possibility for the company to achieve efficiency and effectiveness and/or optimizing costs; or 
• Revisiting the current remuneration/benefit structure in order to target optimization. 

Where international assignments are in place, a more comprehensive approach is sought to ensure that the inbound or outboundexpatriate is fully aware of their situation in the country even before their  assignment has started by organizing pre-departure and post-arrival meetings, giving access to technology tools providing the easy and user-friendly way for
information collection purposes, taking care of correspondence with the authorities. Thus, expatriates have the confidence that their obligations are timely and accurately met, while companies ensure employee compliance with the legislation and, at the same time, build an image of a caring and supportive employer.

Globalization, on the other hand, has also raised important issues with potentially complicated local implications for both companies and their employees such as secondments and bilateral social security cross-border cases. 

How can KPMG be of assistance to you or your business?  

We have the knowledge, the people, experience and technology to assist in all personal income tax and social security matters you may face either locally or internationally. Our world-wide network of member firms is a significant advantage to ensuring that you or your business are able to observe the international perspective/effects from your activities.

As part of our service portfolio we offer to assist you with the following:

• Developing appropriate structures for both local and expatriate/employee remuneration packages in terms of tax an insurance payments 
• Analysis and enhancement of existing remuneration systems  
• Management of Albanian payroll compliance for local employees and expatriates  
• Provision of investment advice leading to tax burden reduction  
• Assistance with the preparation of personal income tax returns and issuance of the respective certificates confirming the taxes paid 
• Assistance in determining the Albanian personal income tax and insurance status of expatriates  
• Payroll review of an entity’s compliance with the personal income tax and social security/health insurance legislation  
• Assistance with the drafting of appeals to tax authorities in relation to tax and contributions assessment notifications 
• Timely declaration of the employees/assignees with the relevant tax and labor authorities
• Reviewing of mobility policies for entities planning on expanding abroad and needing a manual to explain a company‘s expatriate policies and benefit packages depending on the type of assignment  
• Drafting/reviewing secondment agreements  
• Training courses for key personnel for the purpose of clarifying the changes in the local and international personal income tax and social security legislation
• Assisting in preparation of the set of documents and follow up procedures for obtaining the Albanian tax residence certificate 

What would your benefit be? 

At KPMG, we pride ourselves not only on the in-depth knowledge of our firm's tax professionals, but also on the ability of our people to think beyond and be proactive. Thus, when you choose us as your service provider, we believe we can assist towards achieving the following benefits for you and/or your business:  

• Cost savings in many key issues related to Global Mobility Services
• Assistance with many of the administrative issues related to assignments
• A wide range of services – personal income tax and social security planning from a local and international perspective  
• Creation of opportunities rather than problems. The efficient management of global compliance
• Use of technology to achieve greater efficiency in assignment planning