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Recent Amendments to the Instruction on Tax Procedures

2 July 2013

On 3 June 2013, the Minister of Finance approved Instruction No. 17 on Certain Amendments and Additions to Instruction No. 24 dated 2 September 2008 on Tax Procedures. The main changes consist of the following:

Registration of Fiscal Representative

Instruction No. 17 provides for a registration procedure of the Fiscal Representative. The registration procedure should be carried out with the tax authorities by submitting the following list of documents:

  • Registration application form
  • Resolution of the competent body of the foreign entity appointing the Fiscal Representative signed by its legal representative
  • Notarized copy of the contract for the fiscal representation entered between the foreign entity and the person appointed as Fiscal Representative
  • Document certifying the registration of the foreign entity in its residence country, issued within 3 months from the date of application for registration of the Fiscal Representative.

Within 2 working days of the submission of the above documents, the tax authorities should issue the registration certificate of the Fiscal Representative.

Deregistration of Fiscal Representative

In addition, Instruction No. 17 lays down new guidelines on the deregistration of the Fiscal Representative.

The Fiscal Representative, having fulfilled the obligations as provided in the agreement for fiscal representation and paid the tax obligations due in Albania, should notify the tax authorities of the termination of the fiscal representation of the foreign entity. According to the new rules, the notification must be filed with the tax authorities at least 15 days before the Fiscal Representative ceases to act as such.

After the application for deregistration is filed by the Fiscal Representative, within 10 days the tax authorities should verify the tax position of the Fiscal Representative and may undertake a tax audit. As per the changes of the Instruction on Tax Procedures, the tax authorities should deregister the Fiscal Representative within 30 working days.

Identification of individuals exercising economic activities without being registered

The new Instruction sets out a detailed list of procedures to be followed by the tax authorities in case of identifying non-registered persons carrying out business activities in Albania. Such procedures start with seizure of goods and may be extended up to the suspension of the activity for a 6-month period if the registration is not done.

Tax deregistration procedures in case of division/merger of entities

Instruction No. 17 provides for new procedures to be fulfilled in case of divisions/mergers of entities which would result in the deregistration without liquidation of one or more entities. The tax authorities, after being notified by the National Registration Center, may perform a tax audit of the taxpaying entities involved in the division or merger agreement. This Instruction describes detailed procedures to be followed by the tax authorities for the final settlement of the outstanding tax liabilities or compensation of any taxes paid in excess.

Penalties in case of non-use of fiscal devices

The Instruction has updated the penalties applicable to the taxpayers who fail to issue a fiscal coupon for the goods sold and services provided and to those entities authorized for distributing and trading fiscal devices. Such penalties were previously specified by the Law on Tax Procedures.

Entry into force

Instruction No. 17 dated 3 June 2013 is published in the Official Gazette No. 99 dated 14 June 2013 and became effective after its publication date.

 

For Information

Arkadiusz Mierzejewski
Partner, Tax
Tel: +355 (4) 2274 524
Fax: +355 (4) 2235 534
arekmierzejewski@kpmg.com

Alba Paparisto
Senior Manager, Tax
Tel: +355 (4) 2274 524
Fax: +355 (4) 2235 534
apaparisto@kpmg.com

In this issue

Registration of Fiscal Representative

Deregistration of Fiscal Representative

Identification of individuals exercising economic activities without being registered

Tax deregistration procedures in case of division/merger of entities

Penalties in case of non-use of fiscal devices

Entry into force

For Information
   
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