How are expenses for free professions calculated? What do Taxes declare?

2024-04-25 09:27:24Biznes SHKRUAR NGA REDAKSIA VOX

The Tax Administration clarifies that the calculation of the preliminary installments of Income Tax for the year 2024, for professional services, is made on the % of the self-declared profit during the year 2023.

Referring to the announcement of the General Directorate of Taxes, since 2024 is the first year of implementation of the new law, the installments are based on the declaration of profit for the year 2023, the declaration for which is carried out according to the provisions of the old law on "Tax on income".

"We emphasize 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 profit for the year 2024, which is carried out by March 31, 2025 This does not mean that in the calculation of the preliminary installments for the year 2024, the expenses incurred by the taxpayers were not recognized, as long as the calculation is based on the self-declared profit of the year 2023 and the profit is calculated as a result of the actual realized income and expenses. it says in the tax return.

According to the tax administration, there is no technical possibility for the preliminary installments of the year 2024 to be calculated on the profit of 2024. So, as the Law determines, the preliminary installments will be calculated on the profit of the previous year.

The General Directorate of Taxes advises any taxpayer who claims that the preliminary installment of 2024 is too high or in case of misdeclaration on their part, to apply for a revision of the installments to the relevant Regional Tax Directorate, which will examine with priority any request for this purpose, for fair taxation according to the law.