On 07.11.2011 the Albanian Ministry of Finance introduced some changes to Instruction no. 5, on Income Tax, regarding the calculation and payment of Income tax prepayments.
If a taxpayer can prove to the tax authorities, at any time during the year, that the current year income tax will be significantly lower than the previous year income tax then the tax authorities will accept a reduction in the income tax prepayments of the taxpayer.
In case that upon the submission of the year-end income tax form the tax liability exceeds the by more than 10% the prepayments made during the year, the taxpayer will pay an interest of 5% of the difference between the actual income tax obligation and the amount of prepayments made during the year.
