Tax topic
International business and double taxation
Tax residence, foreign businesses in Albania, cross-border income, payments to non-residents, withholding tax, double tax treaties and documentation.
Key issues
- Tax residence
- Foreign businesses in Albania
- Cross-border income
- Payments to non-residents and withholding tax
- Double tax treaties
- Documentation
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.
It should assess whether its activity creates a permanent establishment in Albania, what registration it needs (branch or subsidiary), how VAT applies, and which withholding tax applies to payments it receives or makes.
Tax residence determines which country taxes a person on their worldwide income. For companies it depends on where they are established or effectively managed; for individuals on their domicile and length of stay, under the criteria in the law.
Yes, it can happen when one country taxes by residence and the other by the source of the income. Double tax treaties and credit for tax paid abroad prevent or reduce this burden.
An agreement between two countries that sets which country may tax each type of income and at what maximum rate, so the same income is not taxed twice.
Whether the payment is subject to withholding tax, whether a double tax treaty applies and a residence certificate is available, how VAT applies to the service (often reverse charge), and whether the documentation supports the expense.
Related articles
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