Albania: Tax/Customs Update

Last Updated: 17 March 2017
Article by Kalo & Associates

1. Amendment to Excise Law

A new amendment no.126/2016 "On some changes and additions to the Law no.61/2012 "On excise in the Republic of Albania", as amended", is effective as of January 1st, 2017. Some of the main changes brought by this latest amendment include the followings:

  • Biofuels used in the transport sector become subject to excise reimbursement for the value of the excise duty paid corresponding to the quantity of the "BIO" product, up to 5%. The reimbursement shall be performed until 2020.
  • Energy products such as petroleum gases and other gaseous hydrocarbons (with NC 27 11) will be subject to excise duty only if such products will be used as fuels for vehicles in road transport.
  • The increase of the excise for tobacco products was cancelled for 2017. As of January 1st, 2018, the excise tax will be increased to ALL 5,750 for 1,000 cigarettes. Further, the excise tax is aimed to be increased annually to ALL 6000 for 1,000 cigarettes in 2019, ALL 6,250 for 1,000 cigarettes in 2020 and ALL 6,500 for 1,000 cigarettes in 2021. The excise tax rate for cigarillos and cigars is increased to ALL 4,400/kg as of January 1st 2017. The tax rate for other manufactured tobacco and tobacco substitutes remains unchanged amounting to ALL 4,400/kg; whereas, a reduced excise tax rate of ALL 2,500/kg shall apply for manufactured tobacco from leafs grown in Albania.
  • Important changes are made to the Chapter XII of the Excise Law concerning applicable penalties.

2. Amendment to National Taxes Law

A new amendment no.127/2016 "On some changes and additions to Law no. 9975, dated 28.7.2008 "On national taxes", as amended", is effective as of January 1st, 2017.

Some of the main changes include the followings:

  • The value of the vehicles considered as luxury vehicles is changed from ALL 7 000 000 to a value equal to or exceeding ALL 5 000 000;
  • Circulation and carbon taxes shall apply on diesel and petrol which is included in the composition of biofuels;
  • Diesel and petrol that is produced in Albania but is subject to exportation is circulation and carbon taxes exempt;
  • The royalty tax rate for the composition of the metallic minerals in the mineral byproducts is being reduced from 2/3 to 1/2 of the royalty tax rate as defined specifically by this Law.

3. Amendment to Income Tax Law

A new amendment no.129/2016 "On some additions to Law no. 8438, dated 28.12.1998 "On income tax", as amended", was published on January 6, 2017, in the Albanian Official Gazette and it is effective 15 days following the date of official publication.

The most important changes include the followings:

  • In case of loans, borrowing or financing from related parties, the expense of extra net interest rate that exceeds 30% of the taxable income before interest and tax, depreciation and amortization (EBITDA) will not be recognized as deductible expenses in the relevant tax period. Each interest expense which is nondeductible may be carried forward in the consecutive tax period, except when the taxpayer's ownership or voting rights has changed by more than 50 %. The above does not apply to banks, credit financial institutions, insurance and financial leasing companies.

    This change will become effective as of 1st of January 2018.
  • The expenses of banks regarding annual and extraordinary contributions made pursuant to the Law on recovery and extraordinary intervention in the banks in the Republic of Albania, are considered as deductible expenses for purposes of the taxable income.

4. Change of some customs tariffs

A new amendment to Law no.128/2016 "On some changes to Law no.9981, dated 8.9.2008, "On approval of customs tariffs rates", as amended", was approved.

According to this amendment, starting as of January 1st, 2017, the customs tariffs are reduced to 0% for some specific raw materials used in the inward processing industry (please see the relevant Nomenclature Code).

5. Changes to the banking legislation:

A new Law no.131/2016 "On some changes to the Law no. 9962, dated 18.12.2006 "On banks in the Republic of Albania" as amended" was published in the Albanian Official Gazette on January 11, 2017 and will become effective 6 months following the date of official publication.

The new amendments of the Law on Banks are not expected to affect substantially the entities of this Law, as the main aim was the alignment with the new Law on 133/2016 "On recovery and extraordinary intervention in the banks in the Republic of Albania", by abrogating some legal instruments which will be introduced in the later Law.

In addition to the above, the amended Law brings some changes to the ranking of settlement of liabilities. Accordingly, in the case of liquidation of the bank or of branch of the foreign bank, claimed liabilities, secured with any collateral, securing charge or financial collateral, are repaid according to the conditions as provided for this purpose, whereas the liabilities for the other accepted claims shall be repaid by preference over all other liabilities, in accordance with the following ranking of claimed liabilities:

  • necessary and reasonable expenses incurred by the liquidator, Bank of Albania (the Authority for Extraordinary Intervention) and Deposit Insurance Agency for purposes of the implementation of the instruments and competencies of extraordinary intervention;
  • creditors of the new loans granted to the bank or branch of the foreign bank after the extraordinary intervention and appointment of liquidator;
  • secured deposits which have not been compensated by the Deposit Insurance Agency;
  • the part of the secured deposit of individuals, entrepreneurs and commercial companies, which surpasses the maximum coverage ratio from the insurance deposit scheme;
  • unsecured liabilities with any collateral, securing charge or financial collateral;
  • subordinated liabilities, which contain contractual clauses for purposes of determining such liabilities in the relevant ranking;
  • unsecured capital instruments be any means of collateral, securing charge or financial collateral, which are not shares;
  • liabilities against shareholders which derive from the ownership over shares.

6. New Law on recovery and extraordinary intervention in the banks in Albania

A new Law no. 133/2016 "On recovery and extraordinary intervention in the banks in the Republic of Albania" was published in the Albanian Official Gazette on January 11, 2017 and will become effective 6 months following the date of official publication. The Law no.133/2016 is partially aligned with the Directive 2014/59/EU dated May 15, 2014 (Banking Recovery and Resolution Directive-BRRD).

This new law aims to set a clear legal basis, determine the criteria, procedures, indicators and especially the role of the institutions involved in the recovery and extraordinary intervention in banks, where the later face serious financial crisis. Accordingly, it makes available to the Bank of Albania as the Authority for Extraordinary Intervention a set of legal instruments to intervene in a stage that is sufficiently early where a bank is in the verge of collapse in order to ensure the continuity of financial and economic functions critical to the bank, thus, minimizing the effect that the collapse of a certain bank has over the financial system and economy of the country as a whole.

In relation to the broad range of powers granted to the Authority for Extraordinary Intervention i.e. the Bank of Albania, the later has the right to dismiss and replace the administrators of the bank and its governing bodies, the right to appoint a special administrator, the right to transfer shares, assets and liabilities of the bank to third parties without the approval of the shareholders or creditors, and the right to cancel the existing shares and the issue of the new shares for purposes of replacing the existing shareholders.

Within this Law, the extraordinary intervention is a procedure that starts on the basis of certain expressly defined criteria, such as being the following:

  1. The bank does not fulfill or there is a risk that very soon in time will not fulfil its obligations;
  2. There is no reasonable perspective that another measure taken by the bank, the banking group or the shareholders of the bank or a supervisory measure or early intervention measure, taken by the Supervisory Authority pursuant to Law No. 9662, dated 18.12.2006 "On banks in the Republic of Albania", as amended, or under this law, can restate the bank within a reasonable period, in good financial conditions and within the supervisory indicators;
  3. the bank extraordinary intervention is necessary for the public interest. In addition, the main objectives aimed by means of the extraordinary intervention measures are the followings:

    1. Ensure the continuity of critical functions of the bank;
    2. Avoid any serious negative consequence to the stability of the financial system by preventing the spread of risks and maintaining market discipline;
    3. Protect public funds by minimizing the extraordinary public financial support;
    4. Protect depositors insured by the Deposit Insurance Agency;
    5. Protect the funds and other assets of clients.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at and we will use commercially reasonable efforts to determine and correct the problem promptly.