Separate income tax, VAT, payroll and tax on distributions before estimating a business's tax cost. They use different bases and rules. A 0% income-tax provision does not mean that a business has no tax or filing responsibilities.
The income-tax starting point for 2026
The standard corporate income-tax rate is 15% under article 41 of Law 29/2023. Article 69(1)(dh) provides a 0% rate through 31 December 2029 for the covered individual traders, self-employed people and entities with annual gross income up to ALL 14 million. Read the current provision against the taxpayer's circumstances, rather than deciding from an approximate euro conversion.
The gross-income threshold and taxable profit are different concepts. Classification, the relevant year, special regimes and adjustments still need review. The legal amount is in lek; exchange-rate movements should not redefine the threshold in your business plan. Read the consolidated law.
Illustrative calculation: if a company is subject to the standard 15% rate and its taxable profit is ALL 2 million, the tax calculation is ALL 300,000. This assumes the taxable base has already been established; it does not determine whether the standard rate applies to your company.
VAT is a separate review
The general VAT registration threshold is ALL 10 million in annual turnover, with specific rules and exceptions. The standard VAT rate is 20%, but it is not the correct treatment for every invoice. A business can fall within the 0% income-tax provision and still have VAT responsibilities.
Do not assume that all VAT on purchases is deductible or that every foreign-customer invoice is a zero-rated export. Read VAT registration and invoice arithmetic for the separate checks.
Dividends and other withholding categories
The domestic rate for dividends is 8% under the income-tax law. It should not be grouped into a blanket “15% for foreign shareholders” statement. Other payment categories may carry different withholding treatment; treaty eligibility and documentation must be checked where relevant.
A transfer to an owner is not automatically a dividend. Identify whether it is salary, a documented reimbursement, a loan transaction or an authorised profit distribution before recording it. Prepare foreign supplier payments before deciding on withholding.
Turn the rules into a monthly routine
Keep revenue and expense documents, reconcile bank receipts, track gross income against the relevant thresholds and review payroll changes. Ask your accountant for the deadlines that apply to your registered responsibilities. A general article cannot produce a complete filing calendar from turnover alone.
Prepare your monthly handover
Choose the situation that fits this month. This is an organising checklist, not a filing calendar. Changing the category clears the checks.
Start with the records of sales, purchases and money movements.
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This only tracks your checklist, not approval or legal compliance.
Read all categories
Business without employees
Start with the records of sales, purchases and money movements.
- Sales invoices and corrections
- Purchase invoices and business-purpose notes
- Full statements for each business bank account
- Cash records and payment confirmations
- List of unpaid invoices and unexplained transactions
Business with employees
Add payroll changes before the payroll is prepared.
- Sales invoices and corrections
- Purchase invoices and business-purpose notes
- Full statements for each business bank account
- Cash records and payment confirmations
- List of unpaid invoices and unexplained transactions
- New hires, departures and contract changes
- Attendance, leave, bonuses and approved payroll changes
Business buying from abroad
Collect the cross-border evidence as well. Tax treatment needs a separate review.
- Sales invoices and corrections
- Purchase invoices and business-purpose notes
- Full statements for each business bank account
- Cash records and payment confirmations
- List of unpaid invoices and unexplained transactions
- Supplier contracts, invoices and country details
- Customs documents for goods, where applicable
- Tax-residency and treaty documents, if needed
Your choices stay on this page and reset on reload. They are not sent to Pivot or the tax authority.
Official source: Albanian tax authorityQuestions to clarify before making a decision
Does 0% income tax mean I do not need accounting?
No. Records, declarations and other applicable obligations remain separate from the rate of income tax.
Is the threshold based on the money left in my bank account?
No. Do not substitute the account balance for gross income or taxable profit. Unpaid invoices, financing and expenses can make those figures very different.
Can I apply a treaty rate just because the supplier is abroad?
No. Review the payment, treaty and required documents. A foreign invoice alone does not establish relief.
Can this page calculate my total tax bill?
No. It explains the questions to resolve. Contact Pivot for accounting and tax support with your activity, legal form, revenue and transaction types.
Official sources
Sources consulted on 27 October 2026. Examples are illustrative; your treatment depends on the period, status and supporting records.
