Tax topic
Dividends and withholding tax
Distributing profit to shareholders, tax on dividends, withholding at source on certain payments, filing and documentation, and resident and non-resident recipients.
Key issues
- Distributing profit to shareholders
- Tax on dividends
- Withholding tax
- Filing and documentation
- Resident and non-resident recipients
Frequently asked questions
Short answers to the questions businesses ask us most often on this topic. Treatment can differ for each business. For your case, write to us.
When the annual financial statements have been approved and show distributable profit, and the shareholders or general meeting decide on the distribution in line with company law and the statute.
An administrator's salary is employment income: it carries contributions and payroll tax, and it is a deductible expense for the company. A dividend is paid from profit after corporate tax, taxed by withholding and carries no contributions.
The approved financial statements, the shareholder's or general meeting's decision to distribute profit, the payment documents and the withholding tax declaration.
For the payments the law lists, such as dividends, interest, royalties and rent, and for certain payments to non-residents. The payer withholds the tax, declares it and pays it over on time.
If Albania has a double tax treaty with the recipient's country, ask for a tax residence certificate and check the rate the treaty allows, and whether the recipient is the beneficial owner of the income.
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