Albania’s Ministry of Finance has announced Instruction No. 11 of 23 July 2024, published in the Official Gazette No. 133/2024.
The new instructions came into force on 2 August 2024.
The guidance introduces revised compliance procedures for applying income tax treaties, superseding the previous instructions, which have been in place for over 20 years. The instructions streamline the procedures for applying double taxation treaties (DTT) and submitting the necessary supporting documentation. The new instruction confirms that DTT provisions are part of domestic law and take precedence over domestic tax legislation, as stated in the Albanian Constitution.
In addition, it requires taxpayers to follow DTT provisions for transactions under these treaties and aligns Albania’s tax practices with international agreements, including the Multilateral Convention on Base Erosion and Profit Shifting (BEPS).
Taxpayers must submit detailed documentation electronically using the DTT application forms. The General Directorate of Taxes will oversee these submissions and assess risk based on the consistency and timeliness of the documentation filing.
Failing to upload data and documentation by the deadline incurs a monthly penalty of ALL 10,000 for up to 24 months. After 24 months, the taxpayer loses the right to implement and benefit from the DTT provisions.
