ABD

 

  Joint Stock Company
(sh.a.)
Limited liability company
(sh.p.k.)
Foundations
(OJF)
Trusts
Company law Law on Entrepreneurs and Companies
Official Journal 60/08
Law on Entrepreneurs and Companies
Official Journal 60/08
Law on Non-profit organization
Official Journal 28/01
*note1
Company purpose Unrestricted
(any activity allowed by the law).
Unrestricted
(any activity allowed by the law).
Restricted
(achievement of a specific, socially beneficial purpose).
 
Founders Unlimited
Can be a sole person or legal entity
Unlimited
Can be a sole person or legal entity
Unlimited
Can be a sole person or legal entity
 
Capital requirements - The initial capital of a Joint Stock Company with private offer shall not be less than 
ALL 2,000,000
(approx.€ 16,393)
- The initial capital of a Joint Stock Company with public offer shall not be less than
ALL 10,000,000
(approx.€ 81,967)
The initial capital shall not be less than ALL 100.00 It is not been specified in the law the value of the funds for carrying out the activity as a Foundation.
(*note 2)
 
Liability Limited only to unpaid amount of the shares issued Limited only to unpaid part of stipulated contributions No liability
(*note 3)
 
Costs of incorporation Approximately
€ 75
Approximately
€ 75
Approximately
€ 106
 
Incorporation Articles of Association
&
Articles of Memoranda
Articles of Association
&
Articles of Memoranda
Articles of Association
&
Articles of Memoranda
(*note 4)
 
Company name Prior search of the nomination as a legal entity Prior search of the nomination as a legal entity Prior search of the nomination as a legal entity  
Formalities Moderate Moderate Moderate  
Credit / funds No No No  
Accounting obligation Yes Yes Yes  
Management Board of Director or Managing Directors & Supervisory Board Managing Directors Board of Director, President or the Executive Council  
Nationality Unrestricted Unrestricted Unrestricted  
Image Very good Very good Very good  
Taxation Profit tax
Withholding tax at source
Value added tax
(*note 5)
Profit tax
Withholding tax at source
Value added tax
Exemption from tax liability  

- - - - - - - - - - - - -


  Income tax Corporate tax Profit tax VAT
Tax rate 10% - 10% 20%

 

 

*note 1
Albanian legislation does not distinguish Trust as legal entity. Similar forms of a Charitable Trust are foundation and associations.

*note 2
At the Articles of Memoranda should be indicated the nature, the source and the value of the necessary wealth for the achievement of the foundation purpose with the respective documentation.

*note 3
Members of the decision-making and executive organs, as well as employees of the non-profit organization, are not responsible for its obligations towards third parties, except for cases when, in the exercise of duty, wilfully or by serious negligence, they have caused damage to third parties.

*note 4
Articles of Association & Articles of Memoranda are not required for the incorporation of the foundation by means of a testamentary act.

*note 5

Profit Tax

All taxpayers registered in tax organs, whose annual turnover exceeds the VAT registration threshold are subject to the tax on profit. The Resident taxpayers are subject to taxation only for incomes generated in the territory of the Republic of Albania. A legal person is considered resident in Albania if:

  1. it has a permanent residence (central offices) in the Republic of Albania.
  2. it has an efficient center of business management in the Republic of Albania.

 

The Value Added Tax is payable:

  1. for all taxable supplies of goods and services realized against the payment by a taxable person, as part of his economic activity in the territory of the Republic of Albania.
  2. for all imports of goods in the territory of the Republic of Albania

The minimum limit of registration is ALL 8.000.000 (per calendar year). The following operations are excluded from payment of VAT:

  • financial services supply
  • gold, bank-notes or currencies supplies to the Bank of Albania
  • Postage-stamp supply used for mail service or similar stamps
  • Supply provided by a non-profit organization against a reduced payment

 

Withholding Tax at source

 

All the residents in the Republic of Albania, central and local government, non-profit organizations and any other entity, recognized by the legislation into force, are constrained to withhold the tax at source at 10% from the gross amount of the following payments, to the non taxation subjects, generated by a source in the Republic of Albania:

  • Interests
  • Share of profit
  • Fee for technical, management and financial services
  • Fee for Rent
  • Dividend
  • Payment for author’s and intellectual property right

 

 

Personal Income Tax

 

All individuals, residents in Albania are subject to taxes for all incomes produced wherever in the world, while the non-residents are subject to taxes only for incomes produced within the border of the Albanian territory. Salaries are taxed according to the tariffs provided below:



Taxable Income
(monthly)
  Tax Rate (%)
Over (ALL) Up to (ALL)  
0 10 000 0
10 001 + 30 000 + 10 % over 10 000
30 001 + and more 10 %

 

Besides these taxes, there are the health contributions (rate 3,4 % of the gross salary) and social contributions (employer 20 % of the gross salary & employee 9,5 % of the gross salary).