Albania: Changes to expenses considered non-deductible for corporate income tax purposes
Law no. 29/2023 includes changes and clarifications in relation to expenses that are considered as non-deductible
Law no. 29/2023 includes changes and clarifications
The new income tax law—Law no. 29/2023 (dated 30 March 2023 and effective 1 January 2024)—includes changes and clarifications in relation to expenses that are considered as non-deductible for corporate income tax purposes.
- Non-deductible expenses: In comparison to the existing law, the new income tax law has eliminated the thin capitalization rules and the limits for the deductibility of donations in case of official natural disasters. The rules in relation to deductibility of the value of services invoiced by non-resident entities have changed by allowing the possibility for the deducting these expenses in the following year as payment is made.
- Bad debt deductions: In comparison to the existing law, the new income tax law allows partial tax deduction of bad debts if the necessary steps have been undertaken, including but not limited to engagement of private debt collection companies.
Read an October 2023 report prepared by the KPMG member firm in Albania
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