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Deloitte Tax Day – Corporate Income Tax Declaration and potential changes in the fiscal legislation during 2013


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Tirane 11 march 2013- Deloitte Albania, held its first Deloitte Tax Day in Albania named: “Corporate Income Tax Declaration and potential changes in the fiscal legislation during 2013”, bringing together more than 45 financial leaders from different sectors and industries. 

The guest speaker in this event was Mrs. Mimoza Kalia, Vice General Director of General Tax Directorate of Albania and one of the most technical individuals within the Tax Administration in Albania. 

During the first part of the seminar, Mr. Olindo Shehu, Tax Director of Deloitte Albania &Kosova covered at a very high level the changes that occurred in the tax legislation during 2012.

"The current government is considering the energy & hydric sector as one of the key strategic sectors for the Albanian economy. A considerable amount of licensees are currently being issued to foreign and domestic investors for the construction and management of hydropower plants in Albania. As such the government has undertaken many actions to incentivize this sector including a few changes in the 2012 legislation. During 2012, the Ministry of Finance approved a couple of changes in the VAT law, specifically “Exemptions from VAT of imported and local acquisition of cement and iron which would then be used in the construction of hydropower plants in Albania”. This has entered in force as of late 2012, however, still today the law is not put in place yet due the related Decision of Council of Ministers which has not been issued yet. Such Decision would provide all the details how the law should be applied in practice and without such guidance the application of the above changes in the VAT law are also pending to be applied in practice" – mentioned Mr. Olindo Shehu 

In addition, during the first part of the event, Mr. Olindo Shehu talked also about common issues related to corporate income tax (CIT) declaration that a number of our clients face in practice. 

"The current Corporate Income Tax Declaration has a non-flexible format and its content is not always applicable for every industry. For example, the Banking Industry, as one of the most important players in the economy of Albania, view such format as problematic and definitely not applicable for such industries- says Mr. Olindo Shehu. Forums and discussion with the interested parties have to be the next step in order to influence and suggest the necessary changes that may assist in creating a Corporate Income Tax Declaration that would be more suitable to the business and the various industries operating in Albania"- says Mr. Olindo Shehu.  

Year 2013: New Technology in the Fiscal System 

"The government is looking for new methods of innovation and approaches to minimize the large chain of tax procedures in overall"- say Mrs. Mimoza Kalia. “The new E-banking system recently been tested in some second- tier banks and ready to go live by mid-year 2013 is one of those innovations that will provide significant easiness to most of our taxpayers. In addition to that a second online system going live by mid-April, named M-tax will enable companies to have access and be informed regularly about their tax status through having access to internet or into their mobile phones. These two systems will contribute in a more favorable and effective business environment"- concludes Mrs. Mimoza Kalia. 

Challenges faced with Tax Inspections during 2012

During 2012, a number of our taxpayers in Albania went through tax inspections which produced a number of unpleasant surprises for many of us. A few of them that Deloitte believe additional attention shall be given were: 

  • Appointment of a Fiscal Representative for services provided by non-residents and related to an immovable property within the territory of Albania 
  • Provision expenses in the Financial Industry 
  • Re-evaluations done by the tax inspectors in cases of tax losses realized by taxpayers

“Although some of these interpretations may be totally against logic or interpretations provided in other countries, this is how they are currently being applied in Albania. Either the business community in Albania gets together on the basis of industry, common issue faced by the authorities, etc., or starts lobbying with the government or it start applying the legislation as the tax authorities are currently indicating through the positions that they have taken in the most recent tax inspections” – says Olindo Shehu 

"The fiscal legislation in Albania is progressing on certain aspects however there is still a lot of work to be done from both government and the business community. We as partner of the business community continue to be involved in raising issues and finding solutions that impact you, us and our clients, through regular meetings and forums and everyone’s contribution is valuable"- concludes Mr.Olindo Shehu 

The event continued with questions and answers and was closed with the promise that such events will happen on a continuous basis with the aim of assisting the taxpayer in Albania and find solutions that will contribute toward a better business taxation environment. 


***About Deloitte 

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee and its network of member firms, each of which is a legally separate and independent entity. Please see for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms. Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. With a globally connected network of member firms in more than 150 countries, Deloitte brings world-class capabilities and high-quality service to clients, delivering the insights they need to address their most complex business challenges. Deloitte's approximately 195,000 professionals are committed to becoming the standard of excellence. 

© 2013 Deloitte Albania

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