Anew version of the existing law on Tax Procedures was recently published by the Ministry of Finance in Albania. According to the latest changes, every business that operates with cash transactions is obliged to deposit in its bank account the entire amount that exceeds the maximum allowed level of the cash balance in the cash register. This action is mandatory to be performed every day, based on the result of the previous working day.
In cases where the taxpayer's bank accounts have been blocked due to non-payment of tax obligations, the entity is obliged to deposit, every day, on its bank account all the petty cash amount collected in the cash register during the past working day, and not only the amount of cash that exceeds the limit allowed.
The maximum allowed amount of cash in the cash register, determined according to this law, is detailed as follows:
- for taxpayers with annual turnover, during the previous tax year, up to 2 million ALL, the maximum allowed amount of petty cash is 150,000 ALL
- for taxpayers with annual turnover, during the previous tax year, from 2 million to 10 million ALL, the maximum allowed amount of petty cash is 500,000 ALL
- for taxpayers with an annual turnover, during the previous tax year, of more than 10 million ALL, the maximum allowed amount of petty is the highest amount between 500,000 ALL or 5% of the annual turnover.
In cases where a taxpayer starts the activity during the calendar year, the maximum allowed limit of petty cash is calculated according to the aforementioned conditions, based on the predicted annual turnover.
The restrictions of this law, however, exclude banks and other non-banking financial institutions.
All commercial entities, before issuing invoices, are obliged to report the initial petty cash balance on the fiscalization software, at the beginning of each working day.
These measures are considered a step ahead regarding the minimization of the uncontrolled circulation of money in the Albanian economy.
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.