National Taxes

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.

Tax Brackets

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

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

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. 

Insurance Premiums

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. 

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