The profit tax for companies with profit rates from 20 to 30 percent will be at 20 percent, while companies with a profit rate of more than 30 percent will be taxed at 30 percent
TIRANA, April 25 – Government says it is drafting a new law that will raise profit taxes for big companies up to 30 percent, changing the 10 percent flat tax system it has applied since 2008 into a progressive profit tax. Finance Ministry sources say the 10 percent profit tax will remain in force only for companies with a profit rate of up to 20 percent. The profit tax for companies with profit rates from 20 to 30 percent will be 20 percent, while companies with a profit rate of more than 30 percent will be taxed at 30 percent.
The measure comes few months after Prime Minister Sali Berisha warned his government would move to raise taxes for mobile phone companies and banks charging unjustifiable high fees and tariffs on Albanian consumers.
“The profit tax for each SMS will be 7 to 8 times higher than currently,” said Berisha, adding that phone calls would also undergo higher taxes. “We cannot accept that electronic transactions which are free of charge all over Europe, have a high price here. This happens at a time when for the sake of developing this market we almost force the citizens to use electronic transactions,” said Berisha, adding that the duty of the government was to move using the system that makes possible a more honest distribution of income. “This government will adopt a policy of zero tolerance towards oligarchs and oligarchy,” warned the PM.
A study by the Finance Ministry shows that 15 companies out of 100 big companies operating in Albania apply profit rates of more than 20 percent. Data show 6 of the surveyed companies had profit rates from 20 to 30 percent while 9 others applied profit rates of more than 30 percent.
Experts have described the measure to increase taxes at this moment when businesses are still recovering from the crisis as a wrong decision making Albania less attractive for potential investors.
