Small and medium-sized companies that are registered in Albania, and that do not have an annual turnover higher than 36.400 euros, are not subject to tax collection as of yesterday.
The reform of the tax system represents new measures to encourage the SME sector, while the government of this country says that in this way Albania is getting closer to Western European countries and their tax model.
As Digjitale writes, Albanian Prime Minister Edi Rama announced at a press conference that this country is abolishing taxation for small and medium-sized enterprises whose annual turnover does not exceed 50.000.000 lek (about 36.400 euros), providing the economy with an even greater incentive for growth.
There is also a new tax collection model for those businesses whose operations in the fiscal year achieve a turnover of up to approximately EUR 60.000.
"All businesses with an annual turnover of up to 36.000 euros are exempt from the tax collection system. All other businesses with a turnover between 36.000 and 58.200 euros will be subject to taxation, but at the new rates - from 7,5 percent of profit tax to 5 percent " said Rama.
The Albanian prime minister's move was characterized by many as a wind at the back of technology startups and small businesses that are just getting started, while the abolition of taxes and new tax breaks could further help this country when it comes to strengthening the startup ecosystem and attracting new investments.
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