On the day when the Parliament is expected to review the new fiscal package, the American Chamber, the organization that represents the interests of the American and Albanian investor community, has issued a strong statement against the draft law "On the Fiscal Peace Agreement".
According to the Chamber's professional assessment, a series of issues with far-reaching legal, economic and fiscal governance impacts are identified, related to factors such as high risk of undermining fair competition; Real possibility of legalizing capital of dubious origin and money laundering; Reduction in the quality of tax administration; Serious economic and fiscal consequences for the state budget and encouragement of schemes to shift businesses towards lower rates.
The Chamber also says that the draft has legal problems and violates fundamental principles of taxation, as well as a lack of transparency and insufficient public consultation.
Earlier, the International Monetary Fund also spoke out against this initiative. The head of the International Monetary Fund mission complained WebThe EC recently stated that "we are concerned that some of the elements of the proposal could undermine Albania's recent progress in tax administration and create some risks to compliance and fiscal fairness."
Draft for "fiscal peace"
The draft law "On the Fiscal Peace Agreement" stipulates that businesses with gross income over 14 million lek that will voluntarily enter into an agreement with the tax administration to prepay profit tax for 1 year with the right to renew 2 more times will be calculated on an increased taxable base consisting of the taxable profit of the previous year plus an 18% increase. If the actual profit at the end of the year exceeds the limit (calculating the profit of the previous year plus an additional margin of 18%), 5% will be paid on this addition.
In addition to prepaying the tax in exchange for not having to pay a tax audit for 1 year, large businesses that will enter into a Fiscal Peace Agreement with the tax administration will also have the opportunity to re-declare the financial statements of the last 5 years, in exchange for a 5% tax.
