By law no. 33/2017 dated 30 March 2017, the Albanian Parliament finally approved the long-discussed tax and customs amnesty law. The law has been published in the Official Journal and enters into force in 5 May 2017.
A summary of the main reliefs granted to taxpayers in Albania under the law is the following:
Tax amnesty is conditional and unconditional.
Unconditional tax amnesty will apply to all the following tax liabilities incurred for the taxpayer prior to 31 December 2010:
- all tax liabilities except for the social security and health contributions;
- all local tax liabilities defined in the law no.9632 dated 30.10.2006 “On local tax system”;
- all administrative penalties and default interest concerning the unpaid social securities and health insurance contribution.
Conditional tax amnesty will apply in relation to all administrative tax penalties and default late payment interests for principal tax liabilities listed below, which are outstanding on the date that the amnesty law enters into force, upon the condition that, within 31 December 2017, the tax payer has paid the full principal obligation of the tax or tariff or contribution:
- tax liabilities incurred for the period January 2011- December 2014;
- social security and health contributions incurred for the period January 2011 – December 2014;
- local tax and tariffs incurred for the period January 2011 – December 2014.
The rule will apply also in case the principal tax liability is paid by the taxpayer prior to the amnesty law entering force.
In addition to the above, taxpayers will benefit from the amnesty inter alia also with respect to the following liabilities:
- tax liabilities of persons that have already been deregistered from the National Business Center on the date that the amnesty law enters into force but that yet appear with outstanding obligations against the tax authorities;
- administrative penalties generated from the tax system for late declaration, including the late declaration of employees;
- administrative penalties concerning late submission of financial statements and decision of destination of profit, until 31 December 2016;
- administrative penalties for failure to submit the statutory tax declarations, provided that the declaration is submitted within 30 June 2017;
- outstanding tax liabilities whether recorded by the taxpayer or which are in the process of tax inspection, created because of failure to issue within the same tax period the document supporting the VAT exemption form the certain supply or failure of the AKBN to issue such declaration, provided that the application for such exemption certificate is submitted with AKBN until 31 December 2014;
- penalties and default interest related to the unpaid social security and health insurance contributions for the category of the self-employed in the agriculture sector generated between 1 January 2011 – 31 December 2016, provided that the contribution is paid within 31.12.2017.
Customs Liabilities Amnesty
Similarly, the custom liabilities amnesty is conditional and unconditional.
Unconditional customs liabilities amnesty shall apply to all:
- unpaid customs liabilities based on administrative decisions of the custom authorities until 31 December 2010;
- unpaid customs liabilities for tobacco products import carried out by persons, identified based on administrative decisions of the custom authorities until 31 December 2016;
- unpaid VAT on import of machinery and equipment with deferred payment regime applicable until 31 December 2016.
Conditional customs liabilities amnesty shall apply to all:
- Unpaid customs liabilities consisting of penalties, default interest and compensatory interest, identified based on administrative decisions of the customs authorities for the period 1 January 2011- 31 December 2016 provided that, within 31 December 2017 the principal obligation of the customs liability is paid in full;
Unpaid customs liabilities concerning penalties and default interest for breach of the temporary custom regime on the import of vehicles, identified based on the administrative decisions of the customs authorities between 31 December 2011 and 31 December 2016 provided that, the principal tax obligation is paid in full.