Annual Personal Income Tax Return in Albania: Who Files and When

Many people in Albania aren’t sure whether they need to file an annual personal income tax return, because their employer withholds tax every month. In several cases, though, the annual return is mandatory and missing it means a fine. This guide explains who files, by when, and what you need.

Who must file?

Under Article 67 of Income Tax Law No. 29/2023, an individual files an annual return when they:

• have annual income above ALL 1,200,000 from all sources;
• work for more than one employer, whatever the amount;
• have more than ALL 50,000 of other income on which no final tax was withheld at source (for example some rental or foreign income);
• are a natural person carrying on an economic activity (sole trader, self-employed, freelancer). They always file a return for business income, whatever the amount.

Deadline: 31 March

The return is due no later than 31 March of the following year. For 2026 income, the deadline is 31 March 2027.

How employment income is taxed

The annual taxable base from employment is taxed at these rates (Article 24):

Annual taxable base	Rate
ALL 0 – 2,040,000	13%
Above ALL 2,040,000	23%

Before the rates apply, an amount is deducted from the taxable base under Article 22:

• ALL 600,000 if annual income is up to ALL 600,000;
• ALL 420,000 if it is above ALL 600,000 and up to ALL 720,000;
• ALL 360,000 if it is above ALL 720,000;
• ALL 48,000 for each dependent child under 18;
• up to ALL 100,000 of children’s education costs, for individuals with annual employment or business income below ALL 1,200,000.

The 2027 fiscal package proposes a new payroll tax table. Read what changes with the 2027 fiscal package.

Business and investment income

• Sole traders and self-employed individuals with gross income up to ALL 14 million a year pay 0% until 31 December 2029. Above that limit, profit is taxed at 15% up to ALL 14 million and 23% above it.
• Those with turnover up to ALL 10 million can choose a special regime with deemed expenses (e.g. 30% for the self-employed, 50% for services).
• Dividends are taxed at 8%; other investment income at 15%.

Documents you’ll need

• Salary and tax-withheld statements from each employer
• Contracts and payments for rental income
• Records of foreign income and tax paid abroad, to claim foreign tax credit
• Proof of dependent children and education invoices, if you claim those deductions
• For a business: income and expense records or financial statements

How to file

The return is filed electronically on the General Directorate of Taxes’ portal. The system shows the salaries and withheld tax reported by your employers. Check them carefully, add your other income and deductions, then submit. If tax is due, the system generates a payment order.

What if you miss the deadline?

• A fine of ALL 3,000 for individuals who don’t file on time (Article 113 of Tax Procedures Law No. 9920/2008).
• Late-payment interest on any tax not paid on time.

FAQ

I have one employer and earn under ALL 1,200,000 a year. Do I file?
No, as long as you have no other income above ALL 50,000 that wasn’t taxed at source and you don’t run a business activity.

I changed jobs during the year. Does that count as “more than one employer”?
Yes. If you were paid by two or more employers during the year, the return is mandatory.

Can I get a refund?
Sometimes, for example when you claim the child or education deductions. The return shows the difference.

We’ll help you file

Abacus prepares annual personal income tax returns for employees, freelancers and sole traders. Contact us and file stress-free before 31 March.

This article is for general information and is not a substitute for professional advice. Sources: Income Tax Law No. 29/2023 (Articles 14, 22, 24, 61, 67, 69); Tax Procedures Law No. 9920/2008 (Article 113).