Insights On Corporate Tax Issues 2016

OVERVIEW OF CORPORATE TAX WORK OVER LAST YEAR

Types of corporate tax work

Albania was awarded candidate status by the EU in June 2014 and is now in the process of implementing reforms with a view to membership, under the assistance of EU as part of the Instrument for Pre-accession Assistance (IPA II) for the period 2014–2020.

In this context, Albania has undertaken and already partially implemented significant tax changes in the last one to two years, by replacing existing laws and introducing new ones aligned to EU legislation and best practice.

A new Law on VAT is effective as of 1 January 2015, which has been significantly harmonised with the corresponding EU Directive 2006/112/EC and has brought significant changes to the main VAT principles and rules in Albania.