Individual income statement

“Since we postponed the Law for the Fiscal Amnesty, we also postponed the deadline for the individual income statement. I want to clarify that the right for submitting this statement has already started on January 1st, but since we postponed the law for the Fiscal Amnesty, the April 30th deadline will be postponed to September, in order to enable all Albanian individuals to legalize their capital and then submit the declaration”, declared the Deputy Minister of Finances, Alfred Rushaj.

Besides the submission deadline, the government has also made other significant amends to the law. The government has increased the annual income limit on which the individuals will submit the declaration, which was initially foreseen for 200.000 ALL per year.

“From now on, only the individuals with higher incomes than 2 million ALL per year and those who receive revenues from more than one source will be obliged to declare their revenues. The individuals who have only one source of revenues will not be included in this category. Naturally, every individual has the right to declare the revenues, so that they can benefit from the deductible expenses”, Rushaj declared.

The law also provides that all individuals who have annual incomes up to 1 million ALL will be reimbursed for three deductible costs.

“The law recognizes three deductible costs. The most important and that will be sensitive for the individuals with lower revenues are the health care costs. Secondly, the costs to the interests of the individual loans used for child education, and thirdly, the voluntary pensions costs”, Rushaj emphasized.

The declarations that will be submitted by the individuals will serve as an information source for the taxes and for the war against tax evasion. But what happens to a citizen who might have deposited revenues generated before 2011, and which cannot be justified with the income statement? The government says that they have taken provisions for them too.

“The Regional Tax Directories will have the competency for relating the declared revenues to the costs. Every individual that has not legalized the capital as the Law for the Fiscal Amnesty requires, that has declared minimal income and that has costs that go several times beyond what has been declared, will be subject to a tax inspection”, Rushaj declared.

This is the first time that the Albanians will be obliged to declare their revenues.

Individual income statement form

Starting from October 2012, every individual who has received higher annual incomes than 2 million ALL during 2011, from more than one source, is legally bound to submit an income statement to the tax office, which serves to the tax paying system.

The Ministry of Finances has prepared a standard form that will be printed at the post and tax offices. After the citizens will fill this form, they will decide if they will submit it electronically, through the post office or directly to the tax offices.

All individuals who have annual incomes up to 1 million ALL are entitled to withdraw all taxes that they have paid for health care costs, tax to interest of loans for education, and tax to interest of loans for pension voluntary contribution.

The health care reimbursement limit is 8500 ALL per year for an individual, and 32.000 ALL for families. There is no limit for the tax to the interest of education loans, and also for the contributions paid in voluntary pension schemes.

What will the benefit procedure be?

For the health care costs, the citizens will present the bills for of the medicines that they have bought in pharmacies, or the medical visits made during the year. In these bills, the pharmacists and the doctors will write down the identity card number of the citizen with the respective payment, and the citizen will then submit it to the tax office.

As for the other two deductible costs, the individuals will have to present the bank payment statements for the school loans, and the agreement signed with the insurance company where the contributions have been voluntarily paid.

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