- Zero rates to be imposed on personal income tax on monthly wages of 40,000 lek
- Personal income tax on salaries up to 50,000 lek halved,
- Personal income tax on monthly salaries of 150.000 to 200.000 lek lowered.
Business taxes / region comparison
Citizens in the countries of the region pay higher rates of social insurance contributions compared to Albania.
Specifically:
Zero VAT rate is applied on around 95,000 businesses in Albania, whereas a 20% VAT rate is paid in Serbia and 18% in North Macedonia.
- Zero profit tax rates are imposed on small businesses in Albania, 10% in North Macedonia, and 15% in Serbia.
- The social insurance contributions rate in Albania is 2.9%, 42.5 % in North Macedonia and 47.5 % in Serbia.
- The inflation rate, which has its impact on the monthly wages, is 3.9% in Albania, 7.6% in North Macedonia and 8.8% in Serbia.
- Taking the personal income tax rates into account, the minimum wage of 32,000 lek would result 28,000 lek after the tax deduction in Albania, 24,000 lek in North Macedonia and 22,000 in Serbia. This clearly shows that the post-tax income for Albanian citizens is higher than for their peers in other countries in the region.
