Fiscal Changes effective from 1 January 2021

Fiscal Changes effective from 1 January 2021

Briefly enumerated changes are presented by
ZLA Consulting as follows:
On the VAT registration threshold

Decision no. 576 which amends the Decision no.953 “On
the implementing provisions of law no 92/2014 on VAT”
Increase of the VAT registration threshold to 10
million ALL
● The minimum threshold for VAT registration
which actually is 2 million ALL, starting from
January 1, 2021, shall be 10 million ALL
● Taxpayers reporting annual turnover from 5 to
10 million ALL may choose to apply the
normal VAT scheme.
● For taxpayers providing professional services,
that are actually registered for VAT regardless of
the annual turnover, the VAT threshold starting
from January 1, 2021, shall be 10 million ALL.

  • For agricultural producers, currently subject of the special
    regime of the compensation scheme, the VAT threshold
    that is actually 5 million ALL starting from January 1,
    2021, shall be 10 million ALL.

On the Income Tax law
Law no.106/2020 is approved, which amends law no.8438
“On Income Tax”
Starting from January 1, 2021, for taxpayers subject to income
tax, the income tax rate shall be:

  • 0% income tax rate for taxpayers reporting turnover
    up to 14 million ALL;
    ● 15% income tax rate for taxpayers reporting turnover
    above 14 million ALL.

This law predicts no changes for small entities which are
subject to “On Local Tax” law, which apply the simplified
ncome tax rate at 0% and reporta a turnover up to 8 million ALL.

On the Personal Income Tax law

Law nr.107/2020, on an addition to Law nr.107/2020, amends
the law no.8438 “On Income Tax”

This law exempts from Personal Income Tax:

  • Salaries and remunerations of any type, for athletes, that
    have regular contracts, recognized by the respective
    sports federations. realized from January 1, 2021 until
    December 31, 2022

On the Invoice and Turnover Monitoring System
Law no.108/2020 published, amends law no.87/2019
“On the invoice and the circulation monitoring system”
as follows:
● For non-cash transactions between the taxpayers and
public institutions, the effect of the law starts on January
1, 2021;
● For non-cash transactions between taxpayers, the effect
of the law starts on July 1, 2021.
● For cash transactions between taxpayers, regardless of
the annual turnover reported, the effect of the law starts
on September 1, 2021

For setting the minimum wage at the country level

Minimum wage changes

Decision no. 1025, dated 16.12.2020 “On determining the minimum wage at the national level” published on 21.12.2020 repeals Decision no. 809, dated 26.12.2018 “On determining the minimum wage at the national level”

  • The basic minimum monthly wage for employees, nationwide, which is mandatory to be applied by any person, legal or natural, local or foreign, to be 30,000 (thirty thousand) ALL.
  • The basic minimum monthly wage is given for 174 working hours per month, performed during normal working hours.
  • The basic minimum hourly wage should be 172.4 (one hundred seventy two points four) ALL
  • Permanent allowances are given on the basic salary.

Tax News_changes effective from January 1, 2021..[:]

 

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