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Ekonomia

The Ministry of Finance clarifies the draft law for the facilitation of procedures for the elimination of double taxation and the prevention of fiscal evasion

The Ministry of Finance clarifies the draft law for the facilitation of

The Ministry of Finance has published for public consultation the new draft directive "On the implementation of agreements for the avoidance of double taxation and the prevention of fiscal evasion".

The document brings several innovations that are mainly related to harmonization with the internal legislation on direct taxes and specifically the new law "On income tax" approved in March 2023, updating our country's agreement model with the latest OECD models and OBK, as well as the harmonization with the foreseen procedures and obligations arising from international conventions and agreements to which Albania has become a party.

The new instruction provides for the facilitation of the procedures that must be followed by taxpayers for the implementation of agreements for the elimination of Double Taxation, which is intended to be realized through the replacement of the "Application Procedure" that is currently implemented and is expected to be approved by the DPT, with the "Procedure of Notification of the Tax Administration", without waiting for the prior approval of the Tax Administration.

For the control effect, the taxpayers' applications within the framework of the implementation of the agreements will be subject to the following risk assessment procedure and will be controlled by the audit structures of the Regional Directorates.

Simplification of the documentation and forms that the taxpayer must submit to the Tax Administration is foreseen, in order to argue the implementation of the provisions of the Agreements.

Replacing the procedure of manual submission of documentation with their electronic upload, in order to reduce the costs and time of the taxpayer.

After being submitted to the public consultation procedure, the new draft directive is expected to enter into force, upon approval by order of the Minister of Finance.