Only 1 in 8 businesses in Albania pay profit tax, official data shows

Nov 10, 2024 - Only 1 in 8 businesses in Albania paid profit tax in 2023, official data from the Ministry of Finance shows. A total of 15,939 businesses with turnovers above 14 million lek contributed 516 million euros in profit taxes, out of an estimated 130,000 businesses operating in the country.

Businesses with turnovers under 14 million lek are exempt from profit tax until 2029, leaving 12.3% of businesses subject to the tax.

The total profit for large businesses in Albania last year reached 3.485 billion euros. The services sector, buoyed by a tourism boom that brought 10.1 million visitors, generated 1.1 billion euros in profit from 4,363 businesses, averaging 252,000 euros per company.

Manufacturing companies, which are 2,508 in total, earned a combined 936 million euros, with an average profit of 373,000 euros per business. Trade and construction followed, while transport companies generated 140 million euros in profit from 597 businesses.

Tax revenues from profit are expected to reach 597 million euros in 2024, with 433 million euros already collected by September.