Albania has introduced new tax penalty changes

The Albanian government has published Law No. 83 of 2022, which contains amendments to the Law on Tax Procedures. The law entered into force on January 1, 2023. The new tax penalties are one of the changes made by this law. Taxpayers who fail to keep accurate books, records, and documentation as required by law face a fine of ALL $ 10,000 as natural persons and ALL $ 50,000 as legal persons.

Next, taxpayers who keep, use, or transport goods not accompanied by tax documents are penalized as follows:

• Taxpayers who are registered for personal income tax from business or self-employment but are not registered for VAT, as well as other taxpayers, face a fine of ALL $25,000;
• Taxpayers who are registered for personal income tax from business or self-employment, as well as VAT, face a fine of ALL $50,000, but no less than the amount of the missing VAT.
• Taxpayers who are registered for corporate profit tax face a fine of ALL $750,000, but not less than the value of the missing VAT, and
• Individuals who engage in unregistered commercial economic activity face a fine of ALL $50,000.

In addition, taxpayers who fail to issue invoices for the second time in a year face a fine of ALL 50,000 for natural persons, ALL 100,000 for VAT-registered natural persons, and ALL 500,000 for corporate taxpayers.

Finally, a taxpayer who obstructs a tax audit or investigation by the tax administration faces a fine of ALL $100,000 for commercial or self-employed natural persons and ALL $1,000,000 for legal entities and high-asset individuals.