TIRANA, March 24 – Stability of fiscal policies due to their frequent changes remains a key concern for the foreign business community in Albania, says the Foreign Investors Association of Albania.
Launching a Slovak-funded project on improving the business climate in Albania, Marinela Jazoj, the head of the FIAA, said the frequent changes in key taxes was turning into a serious barrier for foreign investors in Albania and affecting their investments.
“When foreign investors decide to come to Albania, they have already drafted their business plans and are faced with frequent tax changes which creates confusion with business plans and directly affects their decisions to invest or permanently stay in Albania,” said the FIAA executive.
She also expressed the foreign investors’ concern over VAT refunds.
“There are issues which have been resolved but things have yet to improve. VAT refunds have not been completed yet and a better fiscal reform is very important in the business point of view,” she said.
Slovak Aid, the Official Development Assistance of the Slovak Republic, will be assisting Albania improve its business climate under an 18 month project bringing Slovak know-how to reduce barriers to doing business in Albania.
Back in 2014, Albania lifted its 10 percent flat tax on personal and corporate income, shifting into progressive taxation by increasing the corporate income tax for medium-sized and big enterprises to 15 percent. More recently, the withholding tax on interest rates, rent, dividends and capital gains has been increased from 10 percent to 15 percent.
