Albania Unique in Region for Individual Taxation
Albanian Daily News
Published January 25, 2017

Albania ranks at the first place regional level for the taxation of individuals, especially those with higher wages. The progressive rate of 23% for salaries over 130.000 ALL (EUR 930) is unique in the whole region. While the Albanian employees with higher wages in contrary of those in Kosovo or Macedonia are more likely not to declare their income, preferring to remain undisclosed. 

These are the results of the last survey ‘Employees in the shadows, Hidden Economy and Undeclared Work in Macedonia, Albania and Kosovo’, conducted by CRPM in Macedonia, Institute for Democracy and Mediation (IDM) in Albania and in Kosovo D4D.

According to this survey the progressive tax system implemented in Albania, without positive measures to promote high-wage workers to declare work and pay their taxes, increases the incentives for tax evasion,” said the study.

Most of the people were asked for if they agree with the statement: ‘I would prefer an undeclared employee with a salary higher than declared with a lower salary’ and they said yes.





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