Small businesses in Albania will not pay profit tax in 2020 because of Coronavirus measures

 

 All small and medium businesses in Albania with an annual turnover of up to ALL 14 million will not pay the profit tax in 2020 (which is 5%). These prepayments are made for each quarter based on the profit of the previous year.

Given the fact that many small and medium-sized enterprises were shut down by a decision of the Ministry of Health to prevent the spread of COVID-19, their turnover has been significantly reduced, which is why the Council of Ministers has taken this decision.

Screenshot of part of the law of the small business in Albania

It has also been made easier by postponing the prepayments for next year to businesses in the tourism sector, of active processing with ordering material and call center.

The "prepayments" of this law, the profit tax installments for the tax periods April-December 2020, for taxpayers who carry out economic activities in the field of tourism and active processing with ordering material and call center will not be prepaid. Payments of these installments are postponed to April-December 2021", it is stated in the Normative Act of the Council of Ministers.

Meanwhile, taxpayers who carry out economic activities in the field of banking, telecommunications, trade in pharmaceuticals, food products and fruits and vegetables do not benefit from the exemption, as their activity has continued normally even during the Anti COVID- 19 and will pay the prepayment in October. So most large businesses will pay their installment in October this year..