This article provides a detailed overview of the corporate tax regime in Albania, focusing exclusively on the official tax rules and rates as they apply to companies in 2025. All data presented is sourced directly from the most recent official releases from Albanian authorities.
Overview of Corporate Taxation in Albania
In Albania, corporate tax is levied on the worldwide income of resident companies and the Albanian-sourced income of non-resident companies. The system is straightforward with a flat tax rate, making it relatively transparent compared to bracketed systems found elsewhere.
Albania Corporate Tax Overview (2025)
| Tax Type | Assessment Basis | Flat Rate (%) | Currency (ALL) |
|---|---|---|---|
| Corporate Income Tax | Corporate Entities | 15% | ALL |
The current flat rate for corporate tax in Albania is 15% of taxable profits. There are no progressive brackets: all qualifying corporate income is assessed at this single rate. This applies to both local and international companies operating within the country.
Surtaxes and Special Regimes (2025)
Albanian tax law introduces specific surtaxes targeting particular sectors or business activities. These can impact planning and compliance obligations for enterprises engaged in affected areas. Key surtaxes as of 2025 are summarized below:
| Surtax Rate (%) | Condition | End Date (if specified) |
|---|---|---|
| 5% | Software production and development activities, registered by 31 December 2023 | 31 December 2025 |
| 5% | Agricultural co-operation; certified ‘agro tourism’ businesses | 31 December 2029 |
The 5% surtax applies only to eligible companies operating in these specified fields. For software businesses, eligibility is contingent on registration before the end of 2023, with the reduced rate available through the end of 2025. Similar provisions apply to agricultural and agro-tourism entities through 2029.
No Progressive Brackets or Holding Period Requirements
As of 2025, Albania does not implement a progressive rate structure or impose holding period conditions for corporate tax. This means:
- All taxable profits are assessed at the same flat rate;
- No minimum or maximum holding periods influence the corporate tax calculation;
- The administrative process is simplified compared to regimes that use brackets or additional holding requirements.
Summary Table: Albanian Corporate Tax Highlights (2025)
| Feature | Details |
|---|---|
| Flat Tax Rate | 15% |
| Tax Base | Corporate (taxable profits) |
| Currency | ALL (Albanian Lek) |
| Special Surtax Rates | 5% (for approved software, agriculture, and agro-tourism activities) |
| Progressive Brackets | None (flat rate) |
| Holding Periods | No minimum/maximum period |
Pro Tips for Navigating Albanian Corporate Tax in 2025
- Review Surtax Eligibility Early: If your company operates in software development, agriculture, or agro-tourism, ensure you meet all registration cut-off dates to benefit from reduced surtax rates.
- Maintain Detailed Records: The flat tax system is simple, but clear documentation of revenue sources, especially for companies seeking to qualify for surtaxes, will minimize compliance risks.
- Monitor Legislative Updates: Surtax frameworks and flat rate levels may be subject to review and adjustment. Staying informed on fiscal policy changes is essential for maintaining full compliance.
Official Sources
In summary, Albania’s approach to corporate income tax for 2025 centers on a 15% flat rate and transparent application across business sectors, with the exception of targeted surtaxes for certain prioritized activities. The absence of progressive brackets and holding period rules makes compliance relatively direct compared to more complex systems. However, companies in eligible sectors should pay close attention to registration deadlines to take full advantage of reduced surtaxes. Staying current with official government guidance remains a prudent practice for any company operating within Albania’s fiscal jurisdiction.