The corporate tax exemption is all-or-nothing: cross the turnover threshold and the full liability applies, not just the excess. How that shapes turnover planning and invoice timing.
- Independent VAT and CIT thresholds
- Salary-dividend structuring
- How does the 0% corporate tax exemption actually work?
Albania applies a standard 15% corporate income tax rate, among the lowest in Europe, but the more consequential feature for small and growing businesses is the temporary 0% exemption under Law No. 29/2023: companies and self-employed individuals with annual gross turnover up to ALL 14 million (approximately €120,700) pay no profit tax at all, an incentive guaranteed through 31 December 2029.
What a company pays in Albania. Every figure below is published on the Albania country page.
| Albania | |
|---|---|
| Corporate tax rate | 15% standard · 0% for turnover up to ALL 14M (~€120,700) through 31 December 2029 |
| VAT standard rate | 20% |
| VAT reduced rates | 6% (accommodation, books, and defined categories) |
| Accounting standard | IFRS (listed/large entities) or National Accounting Standards for smaller entities |
| Currency | ALL (Albanian lek) |
What makes it complex in Albania
- Independent VAT and CIT thresholds — — mandatory VAT registration applies above ALL 10 million turnover, regardless of CIT-exempt status, creating a band where a business is VAT-registered but CIT-exempt simultaneously.
- Salary-dividend structuring — for owner-directors, balancing deductible salary (subject to PIT and contributions) against the flat 8% dividend tax on distributed profit.
How does the 0% corporate tax exemption actually work?
Companies and self-employed individuals with annual gross turnover up to ALL 14 million pay no corporate income tax at all, guaranteed through 31 December 2029 under Law No. 29/2023. This is a hard threshold: crossing it by any amount applies the standard 15% rate to the entire year's net profit, not just the portion above the threshold.
Can a business be VAT-registered but still exempt from corporate tax?
Yes. VAT registration becomes mandatory once rolling 12-month turnover exceeds ALL 10 million, while the CIT exemption applies up to ALL 14 million — meaning businesses with turnover between these two thresholds are simultaneously VAT-registered and CIT-exempt, since the two thresholds operate independently.
Independent VAT and CIT thresholds is one of the points HTLC Network handles for clients operating in Albania, within a single engagement that covers every other country they operate in — executed locally, governed centrally.
In Albania the scope is: Statutory accounts under IFRS, VAT returns, and corporate tax filings aligned with Albanian standards, including continuous turnover monitoring against the CIT exemption threshold.
See Accounting & Tax Compliance in Albania for the full scope, or the Albania country page for the statutory framework across every service.
Figures as published on the HTLC Network country pages, reviewed September 2026 and collected from public sources. They are not a substitute for advice on a specific case and should be verified before being relied on.