Albania: Changes to corporate income tax

New income tax law includes changes to the corporate income tax

New income tax law includes changes to the corporate income tax

The new income tax law—Law no. 29/2023 (dated 30 March 2023 and effective 1 January 2024)—includes changes to the corporate income tax, and in particular to how the corporate income tax applies to specific long-term contracts.

Currently, taxpayers with annual turnover in excess of ALL 8 million are subject to corporate income tax, applied at a 0% rate for taxpayers having an annual turnover from ALL 8 million to ALL14 million, and at a 15% rate on taxable profit for taxpayers with an annual turnover exceeding ALL 14 million. Under the new law, any type of legal entity established in Albania is subject to corporate income tax at a 15% rate, without regard to their annual turnover.

In addition, the new law provides that income related to long-term contracts must be recognized based on the part of the contract completed during the fiscal year concerned. The percentage of completion may be determined by referring to the proportion of the costs incurred in that year against the overall expenses estimated for the contract, or otherwise by referring to the national and international accounting standards.

Read a September 2023 report prepared by the KPMG member firm in Albania 



The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.