In the framework of the 2023 fiscal package, the Ministry of
Finance has announced several draft laws that will enter into force
during the coming year, affecting some of the most important taxes
in Albania, such as, Income Tax, VAT and Excise. There are also
changes in some of the penalties for different categories of tax
violation.
Specifically, regarding the draft law on Income Tax, the
following changes will be implemented:
For individuals, the tax-free salary limit will increase from
ALL 40,000 to ALL 50,000, which will reduce the tax income in state
budget, but in the meantime, it will increase the net income of
employees by the same amount, which means more money circulation in
family budgets, and more consumption in the economy. Over 70,000
employees whose salary pertains to this interval will be affected
by the aforementioned changes.
