TIRANA, Dec. 15 – According to recent data published by the Bank of Albania in the Balance of Payments, the repatriated profits of foreign companies operating in Albania amounted to 380 million euros, increasing by 30 percent compared to the same period during the previous year. Based on previous data reported by the BoA, this is the highest level of repatriated profits recorded, exceeding that during the two-year period of 2008-2010 when level was high due to the large profits of mobile phone companies.
The Bank of Albania reported that repatriations were mainly in the form of dividends and reinvested earnings, totaling 115 million euros during the third quarter, as a result of the increase in the profit of foreign companies operating in the country. Simultaneously, interest payments reached 25 million euros.
However, in addition to the increase in profits of foreign companies, another reason that prompted the increase in repatriations, has to do with the fiscal relief measures undertaken by the government, under which businesses were taxed at 8 percent on their retained earnings from 2018 and earlier, including capital reserves and profits, provided that the tax on retained earnings from 2017 and earlier was paid by September 30, 2019. According to official data from the Tax authorities, dividend income during the January September period in 2019 amounted to 90 million euros, tripling since 2018
The company with the highest repatriated profits was Telekom Albania. In April this year, Telekom Albania, the second mobile operator in the country, decided to distribute 400 million euros in dividends to shareholders of Cosmote Mobile Telecommunication. The company’s retained profits are accumulated in the form of reserves from 2001 to 2010 and will now be distributed in the form of dividends to shareholders.
The National Commercial Bank (BKT) was the second foreign entity with the highest profit repatriations, having distributed 193 million lek in dividends, followed by Tirana International Airport with 158 million and Raiffeisen with 67 million euros.
