Tax Freedom Day in 2024 in the Western Balkans and regions of Albania

The Tax Freedom Day for the Western Balkans (WB6) for 2024 is its 114th day[1]. In 2024, this day falls earlier in Kosovo, Albania and North Macedonia. In Bosnia-Herzegovina, Montenegro and Serbia, the day of fiscal freedom is more than 1 month later than in the other three countries.

Even in 2024, this day has come without significant changes for the countries of the Western Balkans. The only change that has occurred between the two years is found in Kosovo, which in 2024 celebrates Tax freedom on the same day as in Albania.

In Albania, Tax freedom day 2024 is on the same day as in 2023.

Tax Freedom Day represents the taxpayers of a country facing their burden from the fiscal administration to collect tax obligations for the budget.

This day is the indicative date to know, on which day of the year the burden on the state budget has been fulfilled or to show the taxpayers how many days they have to work in order to pay their part of the tax obligations on account of the budget.

After this day, the remaining income remains logically in the pocket of the business or individual, to pay individual, family or business expenses.

From the calculation of the days consumed in each country to pay the taxes that constitute the tax burden, according to the data declared by each of the fiscal revenue administrations and confirmed by the Ministry of Finance for each of the countries of the Western Balkans, it results that depending of the level of tax burden to GDP, Tax Freedom Day in 2024 in the Western Balkans comes on April 24, 2024.

Tax Freedom begins its journey through the region by first knocking on Kosovo and Albania on the same day, April 3. Ten days later this day is celebrated in North Macedonia on April 13, 6 days later than 2023.

The month of April no longer has any date to be celebrated as Tax Freedom day for each country, but symbolically April 24 is the day of fiscal freedom in the entire region.

Tax Freedom Day follows the trip in the month of May, in Montenegro on May 11 and on the same day in Bosnia and Herzegovina. On May 14, the Tax freedom journey ends in Serbia.

This year, Albania, Kosovo, BiH, Montenegro and North Macedonia are presented with increased tax burdens, coming closer between the countries within the two regional groups.

Before this date, the entire WB6 region is still burdened with obligations to be paid for the tax burden that belongs to it according to legislation and activity.

Starting from the date when Tax Freedom is celebrated, everyone understands how heavy the burden of the budget is on the citizens of the country.

On the other hand, Tax Freedom is the index that shows how many free days businesses and individuals have throughout the year to work for themselves and their families.

Why does Tax Freedom Day change every year?

The calculation of Tax freedom is composed of three factors:

The burden of taxes and personal income taxes,

The burden of taxes, duties and fees on business income, as well as

Total tax burden as a percentage of GDP.

To bring this day to the attention of all taxpayers as soon as possible, ALTAX presents the Tax Freedom Calendar every year in the last 12 years. The reason why the day changes is closely related to the revenues that are collected by the fiscal administration and the agencies that collect social contributions for the state budget.

The more revenue collected in a year, the later Tax Freedom Day is celebrated for the following year. Albania had this day later in 2024, after they managed to collect more income than the year before in relation to GDP. In other WB6, this day has also changed in 2024, due to the collection of revenues not in the same ratio to GDP as in 2023.

These revenues may not necessarily be the same between years, but they may be in the same proportion when viewed as a level achieved in relation to GDP.

Tax Freedom Day in 2024 in Albania

Tax freedom day is indicative as far as it is related to the burden of taxes and duties, as well as in a reference way it shows all Albanians how much they had to work for the budget of their state and shows them that this period lasted until the end of the quarter first of 2023 and only a few days from the beginning of the second quarter.

Tax Freedom Day was celebrated by taxpayers on the fourth day of April 2024.

Tax Freedom for 2024 is on the 93rd day of the year, which falls on April 3.

After this period, the profits from work and capital belong to the individual and the business, since it is already considered that the budget has succeeded in beyond 3 months to introduce a part of the profits generated by work or capital into the budget from taxpayers, leaving space for three more quarters of the year for them to work for themselves.

The day that the whole of Albania celebrates does not coincide with the day of fiscal freedom of each region, since the tax burden for Albania is calculated as the average of all the tax burdens of the country’s regions.

According to the tax burden of each region, as well as the calculation according to the calendar of the year, it results that Tax Freedom will come to the 12 Albanian regions at the beginning of the middle of the first 3 months to the beginning of the third 3 months 2024. Tax Freedom Calculation it is based on the ratio of the tax burden of each region to the regional GDP.

The region of Tirana is the most burdened with tax burden and celebrates this day much later than all other regions. Tax Freedom Day for Tirana taxpayers falls on July 12, 2024.

For other regions, Tax Freedom Day in 2024 comes first to the Fier region. In 2024 Fier taxpayers will have to work only 37 days to be freed from the tax burden. Tax Freedom Day 2024 was celebrated on February 6, 2024. But the taxpayers of Dibra also celebrated this day 14 days later, on February 20, 2024

Taxpayers of the region of Shkodra, Elbasan, Korça and Durrës waited for the month of March 2024 to celebrate tax freedom. In 2024, Tax Freedom Day was respectively celebrated on March 3, 5, 6 and 12, 2024.

The taxpayers of the region of Berat, Gjirokastra, Vlora and Lezha wanted you to work during April to be freed from the tax burden. In this month, respectively according to the order above, they celebrated the day of Tax freedom on April 5, 7, 10 and 26, 2024.

In the months of May and June there are no days of Tax freedom.

On July 12, 2024, the taxpayers of Tirana will also celebrate Tax Freedom Day by working 194 days of the year to achieve that after that they can work for themselves without further tax burden.

The month of July is a month when Albanian taxpayers are already all freed from the tax burden.

After this date, all taxpayers can calculate that they can use the remaining income for their purposes and needs for consumption, savings, or investments.

This ease of symbolizing fiscal release helps encourage greater consumption for households, as well as increase savings and use them for investment by businesses. But, in reality beyond the symbolism of the date, planning is done based on programs that are based on business or individual performance.

[1] The year 2024 is a leap year and as such brings the fiscal freedom celebrations one day closer.