Annual Personal Income Tax Declaration

Deklarimi I Të Ardhurave Personale

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Who is subject to the make the annual personal income tax declaration?

Every person resident in the Republic of Albania, who during 2019 have realized income in the Republic of Albania and abroad, in the amount of over 2,000,000 (two million) ALL per year, is obliged to submit the annual personal income tax declaration (DIVA). – Declaration Model (Form / D1)

The annual personal income tax declaration is also obligatory for non-resident individuals, who realize taxable income, with source in the Republic of Albania, in the amount of over 2,000,000 (two million) ALL. – Declaration Model (Form / D1)

What income must be declared?

  • Gross income from wages or bonuses from employment relationships
  • Gross dividend income
  • Gross rental income
  • Capital gain from the sale of immovable property owned by the declarant
  • Gross income from bank interest
  • Capital gain generated from investments in securities or real estate
  • Gross winnings from lotteries or gambling
  • Gross income from intellectual property, licenses, exclusive rights and other assets, which consist only of rights and have no physical form
  • Capital gain from donation
  • Gross income realized outside the territory of the Republic of Albania
  • Other gross income not mentioned above

 

How is the declaration made?

The presentation of the annual personal income tax declaration is done electronically through the e-filling system, the electronic tax system. For the first time, the declaration will be automatically generated pre-filled in some sections, which in any case will be modifiable, so that the declarant has the opportunity to verify and change the data.

How are the subjects identified?

  • Through the personal identification number, in the ID card for Albanian citizens.
  • For non-residents, by the personal identification number, in the identity card.

What are the deducible costs?

  • The amount of bank interest on loans taken for education for oneself or for children and persons in custody.
  • Expenses for medical treatment for themselves, or for children and persons in custody, for the part not covered by the health care system.

What is the declaration deadline?

The annual personal income tax declaration must be submitted to the central tax administration, no later than April 30, of the year following the tax period for which the declaration is made. Due to the state of natural disaster declared as a result of Covid -19, the annual income statement for 2019 must be submitted within 31 July 2020.

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