For more than a decade, Albania has developed a permanent and deeply harmful tradition: the use of tax amnesties and pardons as pre-election “favors,” transforming them from extraordinary political instruments into clientelist tools for short-term gain.Before we begin our analysis,...
Albania's recent push to digitize its tax system through the fiscalization process marks a high-profile attempt to combat informality and modernize public finance. Framed as a cornerstone of the country’s EU alignment efforts, this reform promises greater transparency and tax...
Albania’s efforts to combat informality have been a focus of successive governments, with campaigns in 2015, 2018, and 2021 aimed at curbing informal businesses, wage evasion, and tax avoidance. These previous campaigns mainly included: Tax Registration Campaigns (2015)The 2015 campaign focused...
The Albanian government has launched various efforts to address informality, particularly through digitalization measures such as the Fiscalization process. This strategy, launched in 2022, aims to reduce informal economic activities by requiring businesses to issue electronic invoices for all transactions....
There are a number of important issues related to wage tax policies that deserve careful attention. Any decision affecting payroll tax should have in-depth transparency and inclusiveness from the initial policy-making processes, based on in-depth studies of consequences and effects....
Value added tax (VAT) in Albania, according to tax statistics in 2023, includes 34,767 taxpayers within the scheme, of which 9,450 are taxpayers registered as small businesses. The number of taxpayers with VAT guaranteed the main large source of revenue of...
Strengthening tax compliance and domestic revenue mobilization has been a priority of Albanian fiscal policy for at least over a decade. Although the vision has been adapted for an increase in the compliance model in function of a healthy environment for...
In an initial reaction that naturally arises from taxpayers, fines concern those taxpayers who do not pay taxes or who do not declare income and expenses together with employees and their salaries at the real level. A growing discussion has started...
