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Amendments on Income Tax Law

The Parliament has adopted on April 1, 2012, the Law 20/2012 `On some additions and amendments to the Law No. 8438, dated 28.12.1998 `On income tax`, as amended`.
Main amendments consist in setting an annual bottom income margin for purposes of mandatory declaration. Individuals will be required to complete and submit the personal annual statement of income to the tax authorities, if the annual amount of the gross income derived from them exceeds the amount of 2,000,000 (two million) Lek.
On the other hand the taxpayers who are not obliged to complete and submit personal annual statement of income, and have an annual income of not more than 1,050,000 (one million and fifty thousand) Lek (indexable each year) and wish to benefit from the deductible expenses scheme, may choose to be subject of the declaration procedure.
Regarding this category, are deductible expenses for the purpose of calculating the taxable income, the voluntary contributions to voluntary pension funds and voluntary contributions for ensuring life and health of the individual, paid by the individual, the amount of the loan interest rate received for tuition fees, for them or for their children and persons in custody and the part of medical cost treatment not covered by the compulsory health insurance for them or for their children and persons in custody.
First time obligation for filling and submitting the personal financial statement by individuals provided for in this Law, along with relevant tax payment if there is any, for the fiscal year 2011, should be made not later than September 30, 2012.

Posted on 20 Jul 2012 by admin.e

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