Foreign employees working on hydrocarbon operations. Tax procedures

Transcription

1 Tax Alrt Albania Issu 6 Dcmbr 2013 Contacts: Paul Tobin Partnr paul.tobin@bg.pwc.com Lorta Pçi Dirctor lorta.pci@al.pwc.com Blvd. Dshmort Kombit, Twin Towrs, Towr 1, 10 th floor, Tirana, Albania Incom Tax As of 1 January 2014, th following draft amndmnts to Law No datd 28 Dcmbr 1998, On Incom Tax, ar xpctd to com into forc. Th Corporat Incom Tax rat will chang from 10% to 15%. Prsonal Incom Tax will chang from a flat tax rat to a marginal tax rat, whr incrmntal incrass in incom ar taxd at progrssivly highr rats (tax brackts), as providd in th tabl blow: Taxabl amount (All/month) Prvious tax rat (%) Nw tax rat (%) 0 30,000 0% 0% 30, ,000 10% of th total 13% of th gross amount amount ovr ALL 30,000 > 130,001 10% of th total ALL 13,000 plus amount 23% of th amount ovr ALL 130,000. Banks can now dduct for Corporat Incom Tax purposs only loan impairmnts (provisions) calculatd as pr th Intrnational Financial Rporting Standards (IFRS), thrfor, will not tak into considration anymor th lowr of provisions calculatd as pr th IFRS and provisions calculatd as pr th Bank of Albania. Valu Addd Tax A draft law amnding som provisions of Law No datd 27 April 1995, On Valu Addd Tax (VAT), is xpctd to bcom ffctiv as of 1 January Th supply of goods and srvics by th contractors and subcontractors of hydrocarbon oprations, which ar affirmd as such by th National Agncy of Natural Rsourcs, in rlation to th rsarch and dvlopmnt phas of hydrocarbon oprations, is no

2 longr xmpt from VAT. Th import of such good and srvics is no longr xmpt from VAT as wll. Th audit and approval of taxpayr s VAT crdit balanc by th tax authoritis is xtndd from 30 calndar days to 60 calndar days from th submission dat of th VAT rimbursmnt rqust by th taxpayr. Nvrthlss, th draft law is silnt on th xact dat of VAT rimbursmnt aftr th VAT crdit balanc is approvd. PwC has suggstd amnding this accordingly. As of 1 April 2014, th supply of mdicins and halth srvics by public and/or privat halth institutions ar xmptd from VAT. Forign mploys working on hydrocarbon oprations As of January 2014, incom gnratd from forign mploys working on th production phas of hydrocarbon oprations will b subjct to Prsonal Incom Taxs in Albania, whras thos forign mploys working on th rsarch and dvlopmnt phas of hydrocarbons oprations will continu to b xmpt. Tax procdurs Law No datd 19 May 2008, On Tax Procdurs in th Rpublic of Albania, is xpctd to b amndd with th following provisions starting from 1 January Th limit on cash transactions will chang from ALL 300,000 to ALL 150,000. Th dadlin for appaling th prliminary rsults of a tax audit will b xtndd from 5 calndar day to 15 calndar days. Taxpayrs will now hav a choic of ithr paying th whol amount of additional tax obligations (xcluding pnaltis) assssd during th tax audit or mak a bank guarant bfor initiating th tax appal procdurs. Additional tax liabilitis rsulting from th slf-corrction of tax rturns by th taxpayr will no longr b subjct to pnaltis, but only lat intrst paymnts, providd that th corrction is mad by th taxpayr within 12 months from th dat of dclaration. Th nw draft law clarifis that in cas th rcipt dat of tax liabilitis notifications from th tax authoritis cannot b dtrmind, th notification will b considrd as rcivd by th taxpayr within 10 days from th mailing dat. Th Tax Appal Dirctorat will tak th ncssary masurs to publish it dcisions at th tax authoritis wbsit.

3 Th collction of simplifid incom tax on small businsss will b on th jurisdiction of Gnral Tax Dirctorat, instad of th jurisdiction of local municipalitis. Within 30 days from th initiation of th d-rgistration procdurs at th National Rgistration Cntr, th tax authoritis should chck taxpayrs situation by th mans of a risk analysis. Prviously th risk analysis was not part of th tax authority s procdurs. Excis Law As of 1 April 2014, th import of ptrolum by-products which ar usd for prsonal purposs by th companis focusd on rsarch and dvlopmnt of larg oil and gas rsrvs in Albania, is no longr xmpt from xcis tax. As of 1 January 2014, xcis rats of som products, spcially ic bvrags and cigartts, as providd undr Law No. 61/2012 datd 24 May 2012, On xcis tax, will b amndd. Th suggstd amndmnts of xcis rat ar attachd in Annx 1 of this Tax Alrt. In addition, th draft law dtrmins pnaltis in cas of tax vasions rlatd to illgal production of tobacco and its by-products, nonpaymnts of tobacco xcis, non-paymnt of coff xcis, tc. National taxs As of January 2014, Law No datd 28 July 2008, On National Taxs, is xpctd to b amndd as wll with th following provisions: Th circulation tax on disl and gasolin is xpctd to chang from 5 ALL/Litr to 17 ALL/Litr. Th Rgional Tax Dirctorats will b rsponsibl for th calculation and th collction of national taxs as providd in Law On National Taxs. Local Taxs Th following amndmnts to Law No datd 30 Octobr 2006, On Local Taxs, ar xpctd to bcom ffctiv on 1 January Th simplifid incom tax on small businsss (i.. businsss gnrating an annual turnovr of lss than ALL 8 million pr yar) will b covrd from Law On Local Taxs instad of Law On Incom Tax. Th simplifid incom tax on small businss will chang as follows:

4 Annual turnovr (ALL) Was Bcoms 0 2,000,000 Fixd amount dpnding 25,000 ALL/yar on th taxpayr s activity 2,000,001 8,000,000 10% 7.5 % Amndmnts on tax building provid that a physical prson (i.. individual) owning a scond building, xcpt from th on usd as a rsidnc, will pay on that scond building a tax that is twic th normal tax building applid in th cadastral ara of th scond building. Th tax building for ach cadastral ara has changd and dtails ar providd in Annx 2 of this Tax Alrt.

5 Annx 1 Catgory Was Bcoms Unbakd coff 30 ALL/kg 0 ALL/kg Bakd coff 140 ALL/kg 60 ALL/kg Br Win, Champagn, Frmntd and Sparkling bvrag Intrmdiat ic bvrags Spirituous Bvrags Cigartts containing tobacco Othr rfind tobacco and tobacco substituts Not mor than 70,000 hctolitrs (HL), 1,000 ALL/HL for 6% and 1,200 ALL/HL for mor than 6% 70,001 to 200,000 HL, 1,200 ALL/HL for not mor than 6% and 14,400 ALL/HL for mor than 6% 200,001 to 300,000 HL, 1,500 ALL/HL for not mor than 6% and 1,800 ALL/HL for mor than 6% Mor than 300,000 HL, 3,000 ALL/HL for not mor than 6% and 3,600 ALL/HL for mor than 6% Lss than 200,000 HL, 310 ALL/HL for grad Mor than 200,000 HL, 710 ALL/HL for grad 2,000 ALL/HL 5,200 ALL/HL 2,000 ALL/HL for bvrags containing mor than 15% grad but not mor than 22% Lss than 20,000 HL pr yar, 50,000 ALL/HL anhydrous Mor than 20,000 HL pr yar, 65,000 ALL/HL anhydrous 3,500 ALL/ 1,000 pics 1,500 ALL/kg 5,200 ALL/HL E472 (gras) not providd 40 ALL/kg Lss than 20,000 HL pr yar, 65,000 ALL/HL anhydrous Mor than 20,000 HL pr yar, 84,500 ALL/HL anhydrous 4,500 ALL/1,000 pics on 1 January ,000 ALL/1,000 pics on 1 January ,500 ALL/1,000 pics on 1 January ,000 ALL/1,000 pics on 1 January ,000 ALL/kg as at 1 January ,700 ALL/kg as at 1 January ,400 ALL/kg as at 1 January ,100 ALL/kg as at 1 January 2017

6 Annx 2 Th minimum catgoris of buildings Zon 1 Tirana Durrs (Was) Municipalitis B c o m s Zon 2 Vlor, Fir, Saranda, Pogradc, Korc, Elbasan, Brat, Lushnj, Gjirokastr, Shkodr, Kavaj, Lzh (Was) B c o m s Zon 3 All th rst (Was) B c o m s ALL / m 2 pr annum I. Rsidntial buildings Built bfor ' Built aftr ' II. Othr buildings a) For commrc and srvics b) Othrs III. Buildings ownd or in us, in trritoris dfind as tourist villags This Tax Nwsflash is producd by PwC Albania s Tax and Lgal Dpartmnt Lgal Disclaimr: Th matrial containd in this publication is providd for gnral information purposs only and dos not contain a comprhnsiv analysis of ach itm dscribd. Bfor taking (or not taking) any action, radrs should sk profssional advic spcific to thir situation. No liability is accptd for acts or omissions takn in rlianc upon th contnts of this publication PricwatrhousCooprs Audit sh.p.k. All rights rsrvd.