Free professionals, initiative to "dismiss" the tax-profit. What paths are the legal arguments following?

2024-04-25 13:45:15Biznes SHKRUAR NGA REDAKSIA VOX

Over 29,000 subjects categorized as free professions are forced to pay profit tax this year. The new law on income tax which entered into force in January 2024 has brought dissatisfaction and many reactions among the ranks of freelancers. This is because the calculations of the profit tax installments have been made based on the balances of 2023, a year in which many of these entities, not being subject to the law on profit tax and without a balance sheet obligation, have not declared expenses, and as such, forced to pay higher installment bills.

Free professionals are grouped in several forms to find a solution to this new taxation, which will significantly burden these subjects, especially the self-employed who have a low annual turnover, who do not even manage to generate a normal monthly salary.

Thus, several lawsuits have been submitted to the Constitutional Court by interest groups and by the Parliamentary group of the Democratic Party for the overthrow of the law on the tax of independent professionals and its suspension until a decision is made by the court.

On the other hand, another group of professionals has taken the initiative to prepare a complaint to the Administrative Court of Appeal, where all those affected by this tax are becoming part of it. Protests are also being organized.

Some of the proposals made by the businesses are the implementation of the law that does not belong to the assumed expenses to the extent of 30% and the stop of the advance payment of the tax profit for at least two consecutive years until the business has a real tax balance, given that in 2023 they have not been generated the actual balances of an activity, due to the non-declaration of expenses.

A day ago, the tax administration clarified to businesses that the a priori recognition of expenses in the amount of 30% for taxpayers, who exercise activity as "Professional Service", which is optional, is applied according to the new Law only in the declaration of the profit of 2024, i which is carried out by March 31, 2025. According to taxes, this does not mean that in the calculation of the preliminary installments for 2024, the expenses incurred by the taxpayers were not recognized, as long as the calculation is based on the self-declared profit of 2023 and the profit is calculated as a result of actual income and expenses realized.

Taxation points out that there is no technical possibility that the 2024 advance installments will be counted against the 2024 profit.