A major win for freelancers in Albania! The Council of Ministers recently approved a normative act enabling the refund of prepaid profit tax installments for self-employed professionals. This decision follows a legal battle led by the Institute of Approved Accountants and the Institute of Authorized Accounting Experts, culminating in a ruling by the Constitutional Court.
What Does This Mean for Freelancers?
The amendments to the "Law on Income Tax," introduced in
March 2023, affected approximately 80 freelance professions. These
amendments subjected freelancers earning up to 10,000,000 lek
annually to a 15% profit tax rate. The tax took effect in January
2024, automatically generating installments in the online tax
system. However, significant dissatisfaction among freelancers led
to a partial annulment of the law by the Constitutional Court in
June 2024.
In November 2024, the government issued a normative act canceling obligations for unpaid installments and approving refunds for those who had already paid. This decision impacts over 6,500 freelancers and involves a financial effect of approximately 500 million ALL.
How Will Refunds Work?
The refund process is expected to conclude shortly. Freelancers are
advised to ensure their account details in the online tax
declaration system are accurate, active, and in LEK to avoid delays
in reimbursement.
Eurofast's Take: Simplifying the Refund Process
Navigating tax refunds can be complex and time-consuming, but Eurofast Tirana is here to help. With extensive experience in tax compliance and advisory services, our team provides personalized support to ensure a seamless refund process.
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.
