Profit (or tax) losses in 2009

During the three first months of 2009 Albanian businesses have earned 60 million US Dollars (USD) less compared to 2008, according to the local press (Korrieri, 30.06.2009). The newspaper quotes data confirmed by the Ministry of Finances (MoF), which does not believe the year to year difference to be affected by the global crisis’ impact in Albania. The MoF believes the fall to be due to changes in the fiscal system, and not to market conditions.
The calculations regarding the decrease seem to be based on fiscal information. Korrieri reports that in March 2009 revenue collected increased by 138 % over those collected in February 2009. But that that is much less than the 253 % that was collected a year ago in March 2008 compared to February 2008.
The Ministry of Finances (MoF) explains that taxes on profit are prepaid on the basis of profits realized in the former year. In March of each year are calculated and paid off or reimbursed any differences between the taxes that have been prepaid and the taxes as they should be due according to the real activity of the bygone year. But since there has been a reduction on the tax norm from 20 % to 10 %, and since the system reflects each year estimations and liabilities over a former year (current year -1 year), according to MoF, the quoted data on benefit losses should reflect a reduction in the fiscal “crops” of 2008 as compared to 2007 (and not of 2009 as compared to 2008). The Ministry of Finances (MoF) believes this effect to be due to the changes in the norm of taxation from 20 % to 10 % and not to real economic conditions.