More than 11 000 businesses across the country benefit from a profit tax rate cut to 5 percent only, down from a previous 15 percent tax rate following the increase of the annual turnover threshold from 8 million to 14 million lek starting from January 1. Ziad Brika, the owner of a small woodwork processing plant he opened three years ago in Paskuqan, Tirana, is one of the business owners to benefit from the government’s fiscal incentives. Prime Minister Edi Rama visited his business venues that has grown significantly within a short time and hopes to grow further following the threefold decrease of the profit tax rate.
“I launched this business in 2016. Since my early childhood, I had a strong desire to deal with woodworking and it was a relative of mine who used to work in Greece and who urged me to learn this craft. With my family’s help, I started this quite successful business. Our business has kept growing each year as the annual turnover is a clear indicator. Back in 2016, the annual turnover was two million lek and it grew to five million lek in the two following years. The current turnover is around 9 million lek. With the tax profit reduction to 5 percent from a previous rate of 15 percent I will save around 4.5 million,” Ziadi said.
In his remarks, Prime Minister Edi Rama underlined that Albania is the only country in the region with around 91 percent of the business having to pay a five percent profit tax and this fiscal incentive will stimulate not only domestic investments, but it will also promote employment growth and higher salaries.
“There are more than 11 000 businesses that benefit a threefold decrease of the profit tax rate and they account for around 91% of the businesses operating in Albania and that will have to pay a five percent profit tax rate only, the lowest tax rate applied in the region. This government measure is designed to stimulate employment and investment growth, promote investment in technology and machineries to speed up manufacturing and stimulate salaries hike in the private sector,” PM Rama said.
