New legislation has been approved “On some additions and amendments to Law No. 9975 “On National Taxes”, as amended”. The new legislation introduces a series of changes, as detailed below:
Local tax on small business
Amendments to the law no. 9632, dated 30.10.2006 “On local tax system”, as amended (in force as of 1 January 2016)
Local tax on small business is paid in four equal rates. The first rate has to be paid within the 20-th of April, the second one not later than the 20-th July, the third one not later than 20-th of October and the fourth one not later than 20-th December of the next year.
The corporate income tax brackets have been changed as follows:
|Annual turnover||Until 2015||2016|
|ALL 0-2 million||ALL 25,000||ALL 0|
|ALL 2-5 million||7.5%* of the taxable profit||ALL 0|
|ALL 5-8 million||7.5%* of the taxable profit||5% of the taxable profit|
|> ALL 8 million||15% of the taxable profit||15% of the taxable profit|
*But not less than ALL 25,000
Social insurance are calculated on the gross salary:
|Contribution Rate||Social Security||Health Insurance|
|Paid by employer||15%||1.7%|
|Paid by employer||9.5%||1.7%|
|Paid by self-employed persons||23%||3.4%|
Luxury cars will be considered any vehicles with four + one seats and either:
a) cylinder equal to or greater than 3,000 cm3; or
b) value / price greater than or equal to ALL 7,000,000.
A new initial registration and annual tax will be introduced for these vehicles, independent of the annual tax obligation for used vehicles.
The following tax rates will apply for luxury cars:
a) Initial registration tax of 70,000 ALL;
b) Recurring annual tax of 21,000 ALL.
The tax on insurance premiums, with the exception of insurance premiums for life, travel health and green card products, has been increased from 3% to 10% of the premium’s value.
Tax on Minerals
The tax on minerals has also changed for a number of items. Instead of a fixed percentage, the taxation mechanism has become weight- or volume-indexed, based on tonnes or m3 for several items including coal, granite, construction tiles, etc.
The legislation came into force on 1 January 2016.
Source : www.aida.gov.al