Wages, how much are Albanians taxed? HOW do we rank compared to countries in the region?

2024-05-30 09:02:12Biznes SHKRUAR NGA REDAKSIA VOX

Wages, how much are Albanians taxed? HOW do we rank compared to countries in the

The increase in wages has also influenced the increase in the tax burden. The tax on the salary of employees in Albania starts from 0% for salaries up to 50,000 ALL per month and is 8% for salaries of 50,000-60,000 ALL per month.

Meanwhile, 13% is for salaries from 60,000 to 200,000 ALL per month and 23% above 200,000 ALL per month. One of the changes expected to be discussed is the level of the taxable salary, which will increase by 23% to the amount of 250,000 ALL per month.

But how is the salary tax of the countries of the region according to the ALTAX report?

To divide it into two groups, in flat and progressive tax rates, the countries of the region are divided as follows.

Referring to data from the Altax center, North Macedonia, Bosnia-Herzegovina and Serbia apply a flat tax rate and the tax on wages in these three countries is a fixed rate of 10%.

In Serbia, this rate is after deducting the limit of non-taxable salaries of 25,000 Serbian denars. The taxable base is the gross salary, including fringe benefits, such as company-provided accommodation and use of a company car.

But in Kosovo and Montenegro, a progressive tax rate is applied. Thus, the tax on employee salaries in Kosovo is 0% for salaries up to 960 euros (EUR)/year, 4% for salaries from 960 to 3000 euros/year, 8% for salaries from 3000 euros to 5400 euros/year as well as 10% for salaries over 5400 euros/year.

Also, Montenegro applies a progressive tax, and the tax is 0% for wages up to 700 Euro/month, 9% for wages 701 – 1,000 Euro/month and 15% for wages 1,001 Euro/month and above.


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