Income Tax in Albania is in 2014 levied on a progressive income tax of three brackets.
In between 0 and 30000
In between 30000 and 130000
In excess of 130000
Earlier Albania had a flat tax of 10%, this tax was implemented in 2008. Value-Added Tax is levied at two different rates of 20% as standard rate, and 10% on medicine products.
Social security and health insurance contributions are paid on employment, civil and management income. Contributions is paid on a monthly income, from a minimum of 22,000 to a maximum amount of 95,130. The employees contribution is 9.5% while the employer pays 15%. Health Insurance is levied at 1.7% for both employee and employer. Self employed pay 23% for social security and 7% for healh insurance.
Corporate tax in Albania is levied at a flat rate of 15%. Businesses with a turnover of less than 8 million is exempt from corporate tax. A business is tax resident when the company has been incorporated in Albania or has a permanent establishment or the management and control is exercised in Albania.