Salary 100 thousand gross lek per month? From next year, the individual income statement must be completed

2024-10-03 09:57:36Biznes SHKRUAR NGA REDAKSIA VOX

Salary 100 thousand gross lek per month? From next year, the individual income

Whoever receives more than 1 million gross per month, starting next year, will have to fill in the Individual Annual Income Statement. Simply put, if the net monthly salary transferred to the bank or received in hand is over ALL 80,000, the DIVA form must be completed at the tax administration. Currently, employees with an annual income of over 2 million ALL have this obligation.

"Expanding the basis of declaration of personal income, reducing the exclusion threshold from 2 million ALL per year to 1.2 million ALL per year, is a positive measure for encouraging voluntary compliance and declaring income", A2 quotes the Ministry of Finance.

Also, from next year, the individual will be forced to submit the DIVA statement to the tax administration even in cases where the annual income is more than ALL 50,000 and any other income that is not subject to the final withholding tax. So, the declaration will be made for income other than work.

"Tax on income from employment and mandatory social and health insurance contributions constitute an important source of tax revenue in Albania, which has a significant impact on economic activity and the efficiency of the labor market. In the medium term, the current labor taxation system needs intervention in order to reduce the complications caused by some tax bases".

In the event that the Individual Annual Income Statement is not completed, the individual will be charged with fines which increase if they continue to be unpaid. According to the official data of the Tax Administration for last year DIVA was completed by 73 thousand 790 individuals, of which 24 thousand 224 with income over 2 million ALL and 49 thousand 566 both employed.


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