Next year, the non-taxable salary limit will be 50 ALL from the current 40 ALL.
This means that people who have a gross salary of 50 ALL per month will pay 0 tax. This limit is currently 40 ALL.
The Ministry of Finance estimates that the increase in the salary tax limit from 40 ALL to 50 ALL will reduce the income in the budget by about 1 billion ALL per year, but in the meantime it will increase the income of wage earners up to 50 ALL. per month.
This measure benefits over 70 thousand employees who are in the salary group from 40 to 50 thousand ALL per month.
As part of the changes to the income tax law, next year will be introduced into the personal income taxation scheme of service providers as free professions. This measure is estimated to contribute to the state budget with 2 billion ALL per year.
The Minister of Finance Delina Ibrahimi has referred to the deputies of the Economy Committee that there are over 14 professions registered with the status of a natural person, which will be subject to taxation, thus influencing the discouragement of the phenomenon of passing from the list -payment with employee status and progressive tax burden of 13% and 23%.
She explained that the changes also eliminate the practice of transferring profit within the country from legal entities subject to the 15% profit tax to self-employed natural persons with a 0% tax rate, through the billing of services.
The tax for small businesses that carry out activities in the field of trade, production, transport, handicrafts, etc., organized as physical commercial persons, but also ShPC, and that achieve a turnover of up to 14 million ALL will be 0% until the end of 2029 , said Ibrahimi.
The increase of the non-taxable salary limit to 40 ALL from 30 ALL was applied in the middle of this year.
Increasing the non-taxable wage limit helps increase real wage declaration, as informality is still high in this regard.
The increase in declarations, on the other hand, would help the government collect more income from insurance contributions./B. Hoxha
NOTE: This material is the intellectual property of Monitor
