Local taxes in Albania 2015/2016

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Open Data Albania is investigating on the types and rates of national taxes in the Republic of Albania. The law no.9632, dated 30.10.2006 as amended, provides for nine types of local taxes: Simplified income tax for small business; Tax on immovable property, which includes tax on buildings and tax on agricultural land and territory; Local  hotel bed occupancy fee; Local infrastructure impact tax due to new building; Tax on the transfer of immovable properties ownership rights; Annual national vehicle registration fee; Local public area occupancy fee; Tax on billboard advertising and Temporary taxes.

Simplified income tax for small business. Every entity, which conducts a business, through which a turnover of less or equal to All 8 million is realized during the fiscal year is subject to payment of simplified income tax for small business. Until 31 December 2015, entities with an annual turnover from ALL 0 up to 2 million paid a fixed tax amounting to ALL 25,000 per year, while entities with an annual turnover of ALL 2 to 8 million paid an income tax at the rate of 7.5%. However, starting from 1 January 2016, entities with an annual turnover from ALL 0 to 5 million will pay a tax of  zero ALL, while entities with a turnover from ALL 5 to 8 million will pay an income tax rate of  5%.

Simplified tax rate on small business, 2015/2016



Source: Law no.9632, dated 30.10.2006 as amended
Comments and analysis: Open Data Albania


Tax on Immovable property.
Subject to tax on immovable property are all natural or legal persons, domestic or foreign, owners of real estate buildings, agricultural land and territory (no public area) in RA. Tax on land immovable property is introduced with changes in the fiscal package and its implementation will start on 1 January 2016. On the other hand, starting from January 1, taxes on tourist village?s buildings will be removed. Indicative tax rates have not changed since the passing of law 181/2013, which provided for a doubling of the building tax for businesses.

Tax base minimal categories and taxes indicative rates for each minimal category of the tax base on the building, agricultural land and the territory are provided for by the law, but the Council of the Municipality, or Communal decides on the tax rate that will be applied for every minimal category of tax base, within limits of plus or minus 30 percent of the tax indicative rate for each respective category. Whereas the limits for the Small Business taxpayers are plus 10 / minus 30 percent. These taxes liability is calculated by multiplying the surface of the building / land with the appropriate tax rate.

Indicative rates of on the tax on buildings, 2015/2016



Source: Law no.9632, dated 30.10.2006 as amended    
Comments and analysis: Open Data Albania   


Tax on agricultures land 2015/2016



Note: Clasiffication by agriculture land category is conducted by Ministry of Agriculture anf Food structures.

Source: Law no.9632, dated 30.10.2006 as amended    
Comments and analysis: Open Data Albania   


Indicating rates of land tax (not public area), 2016



Source: Law no.9632, dated 30.10.2006 as amended    
Comments and analysis: Open Data Albania 
  

Hotel bed occupancy fee; 

Hotel means any activity that provides paid accommodation and included nominations as hotels, motels, tourist establishments, pensions, guest houses, family tourism and any other object used for this purpose. Hotel bed occupancy fee base is the price per one night.  The tax rate is up to 5 percent of the accommodation price, but starting from 1 January 2016 this tax will be 140 ALL per one night of stay.
Local infrastructure impact tax due to new building. This tax is applied for the new investments that are required to be carried out. The basis of this tax is the value of the investment in ALL. The tax rate is expressed as a percentage of the investment value and run at 1 to 3 percent of this value, while in case of Municipality of Tirana it is 2 to 4 percent of the value. As for infrastructure projects such as construction of national roads, ports, airports, tunnels, dams, construction of energy infrastructure, including machinery and equipment used for these projects, the infrastructure impact tax due to new building is 0.1 percent of the investment value. As for buildings under the process of legalization, the infrastructure impact tax due to new building is 0.5 per cent of the investment value.

Tax on the transfer of immovable properties ownership rights 

It is established for buildings and all immovable properties at the moment the ownership rights transfer. Tax liability is calculated by multiplying the tax rate with its base. The tax basis on the transfer of building ownership rights is the area of construction, the ownership of which was transferred. Categories of buildings for the taxable base effects are provided in the table. As for on the transfer of immovable properties ownership rights, the tax base is comprised by the value of their sales. The tax rate is determined as a percentage and the indicator level of the tax is 2 percent. This tax is collected from the real estate registry office, which, being an agent of the tax collection benefits 3 percent of the collected amount. 



Source: Law no.9632, dated 30.10.2006 as amended   
Komente dhe Analiza: Open Data Albania   


Annual vehicle registration fee
the tax base is the type of road transport vehicle. The tax rate is expressed at a certain quota by the type of the vehicle. Categories and rates by vehicles are provided as follows.

Annual vehicles registration tax, 2015/2016



Source: Law no.9632, dated 30.10.2006 as amended   
Komente dhe Analiza: Open Data Albania


Public area occupancy fee; This tax is calculated on the areas occupied for business purposes. Public area occupancy fee is calculated as the monthly obligation of taxpayers and has as a basis the public area occupied in square meters. Tax rates are set out in law for local taxes, but the council of the municipality, or commune may define different tax rates at the limits of plus 10 / minus 30 per cent, according to the level of business activity development in various areas of inhabited centers.

Indicating rate of public areas occupancy tax, 2015/2016

                                                            Municipalities



Source: Law no.9632, dated 30.10.2006 as amended  
Komente dhe Analiza: Open Data Albania


Tax on billboard advertising this tax is applied on all types of billboards that are placed from business and it varies according to the types.  Their rate is provided following.

Board tax, 2015/2016



Source: Law no.9632, dated 30.10.2006 as amended  
Komente dhe Analiza: Open Data Albania


Local temporary tax
Municipal or communal council, when it deems necessary, applies temporary taxes in the general interest of the community in the territory within its jurisdiction. Tirana Municipality deals only with the green tax.



Excel datasets : XML, N3 datasets :
    Contributer: MSc. Ina Baja
    Translated by: ODA
    Edited by: ODA