Taxation of free professions, the tax administration clarifies the update of the economic code for businesses

Taxation of free professions, the tax administration clarifies the update of the
The General Directorate of Taxes has clarified that businesses that do not offer professional services according to the determinations of the decision with the analytical list, but in the meantime appear registered as a professional service, must update the economic activity code online.

From businesses, finding the economic code in accordance with the list approved by the Council of Ministers is easily verified in e-Filing in the section where taxes are declared. While changes are made online through e-Albania.

"With the new law "On income tax" from January 2024, some professions whose activity has an annual turnover of up to 14 million ALL will be taxed. who are these professions: doctors, lawyers, IT engineers, lawyers, dentists, etc. that provide professional services. Regardless of the legal form, all categories are included. My business has been registered for years. How can I understand that I have to pay tax? Verify the economic code, which must be adapted to the activity you carry out.

Where do I find this code?

Simply in your e-filing account, where taxes are declared. Verify the code in the list published on the tax page and change it if it is incorrect.

How is the change made?

Find the economic code that matches your activity and update it in online services and e-Albania. Application for change of natural person. Application for changes in the registration data for limited liability companies (LLCs)", it is explained in the video distributed by the General Directorate of Taxes.

The economic code for self-employed businesses according to the services provided is found in the analytical list of the government's decision published in the Official Gazette on December 2023.

The list for free professions is divided into 26 types of activities, and contains 262 professions.

According to the decision, in cases where taxpayers are not clear about the categorization of the economic activity they exercise, or about the rate of income tax related to their activity, the General Directorate of Taxes, based on the Nomenclature of Activities, determines the division and the activity in which the relevant taxpayer participates

According to the division into activities, the new taxation will include types of activity, such as: Film, video and television program production, voice recording and music production activities; Information technology services; Information service activities; Financial services activities, except insurance and pension financing; Insurance, reinsurance and financing of pension funds, excluding compulsory social insurance; Ancillary financial intermediation activities other than pension insurance and financing; Real estate activities; Legal and accounting activities; Architectural and engineering activities; Activities of technical controls and analyses; Publicity and market research; Other professional, scientific and technical activities; Veterinary activities; Leasing activities; Employment activities; Travel agency, tour operator and other reservation service activities; Office administration, administrative support and other support activities; Public administration and protection; Compulsory social security; Education; Health activities; Activities of medical and social care centers; Social care activities without accommodation; Creative activities; Arts and recreational activities; Fun and recreational sports activities; Other service activities.

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