The money transfer between companies and the tax issues in Albania

1. Transfer of money from Mother Company to Daughter Company

The money will be transferred through bank accounts of companies, as every usual transactions/payment made before with specific explanation.

Money it is advisable to be transferred maybe in several parts, because of the big sum of money for the available capacities of Albanian banks.

Anyhow there’s not any legal consequence for the companies by the financial or tax legislation, even the money will be transferred in one lump sum.

1. The destination and declaration of the money by Daughter Company

For the case when the mother company has borrowed money to daughter company, the sum of money firstly should be transferred only for the repayment of loan to another company. Money from Mother Company could be declared as investment for the raise of capital of Daughter Company.

There’s not any tax consequence for the daughter company. The only issues are about the legal papers that will be used for registration to National Center of Business when the capital will be decided to be raised and the declaration of transfer to the Money Laundering office based on the online forms[1] that should be done for every transaction.

Below are the legal steps for the raise of capital and decrease of capital (when the money will be paid to another company). The decisions of Assembly should be made before the transfers are carried out.

2.1. The legal steps if the capital will be raised.

First step for the increase of capital should be based on a Decision from Assemble of owner/partners of company. Next step is to submit the Decision to the National Center of Registration in order to be registered at Commerce Register as a raise of capital.

2.2. The legal steps are the capital will be decreased

The First step for the decrease of capital should be based on a Decision from Assemble of owner. Next step is to submit the Decision for the decrease of capital to the National Center of Registration in order to be registered at Commerce Register.

The tax income law in Albania considers as tax subject only the decrease of that part of capital that is raised based on net profits of company, and not the contributions of owners in money or assets.

For more advices for this topic you ask directly through altax.al 

[1] https://www.fint.gov.al/onlineapp