Income Tax from Investment
Income from Investment
Income from investments received jointly by more than one family member is considered as income for the family member with the highest annual taxable income.
Exempted Income from Investment
Dividend
Interest
Interest expenses for all forms of debt
Other economically equivalent costs to interest and expenses made related to financing increase
Interest on bonds
Payments for profit-sharing loans
Interest on derivative instruments; hedging agreements
Interest for IFRS 16 - financial lease
Capitalized interest or amortization of capitalized interest
Guarantee fees
Fees
A total or partial payment deferral, a premium or a similar amount related to the cases listed above.
Transfer of Securities and Financial Instruments
A loss from one security can be offset against income from another security within the same year.
In the case of securities acquired through inheritance or gift, the acquisition cost for tax purposes is the taxable value of the securities at the time of receipt.
Inheritance
Resident
Gift or inheritance of assets located in Albania or abroad
Gift
Movable property
Immovable property
Money received without compensation
Non-resident
Gift or inheritance of assets located in Albania
Inheritance
Movable property
Immovable property
Money received after deducting inherited obligations
Nominal value or market value (whichever is higher)
15% without deducting any costs
Gifts and Inheritance – Tax Exemption
DIVA – Who is liable and what is declared?
Individual's income from employment
Individual's income from investment
Income > 1,200,000 ALL per year from all sources
More than one employer
More than 50,000 ALL of any other income not subject to withholding tax
Residency - Personal Income Tax
Allowed Deductions – Income from Employment
DIVA - 2024 Format
This is the DIVA (Annual Individual Income Statement) format for 2024, click to download it.
Credit of Overpaid Tax
Documentation - Personal Income Tax - DIVA
Employment or service contract
Payments showing tax withheld at source (annual summary from employer)
Any legal document proving expenses claimed for tax deduction, contract with private pension fund, personal status declaration including family certificate, documents for dependents and others under custody.
All documentation verifying data declared in the income statement. When foreign tax is credited (foreign tax return, foreign tax payment document, or other official documents proving tax payment abroad).
Reporting Obligations – Personal Income
