778 million euros in fines and late payment interest are hidden from taxes - Unpaid debts of businesses, Profit Tax takes the largest share
The tax administration has an obligation of 194.4 billion lek to collect from businesses in the country.
Referring to official data from the General Directorate of Taxes, it turns out that the principal of accumulated tax liabilities constitutes about 60% of the total amount of tax liabilities, while the remaining 40% of these liabilities consists of penalties at 36% and late payment interest at 4%. In other words, fines and late payment interest amount to 77.8 billion lek and 116.6 billion lek is the principal.
According to the law on the forgiveness and cancellation of tax liabilities, which has started to be applied from May 15, 2026, the entire amount of fines and late interest of 77.8 billion lek is expected to be forgiven for businesses, where liabilities over 10 years old will be automatically canceled, while the rest will be forgiven on the condition that 50-75% of the principal is paid within June or December 2026.
In the stock of unpaid liabilities divided by type of tax, Profit Tax occupies the largest share in the debt stock with 35.5% in the amount of 68.97 billion lek, followed by VAT with 32.9% in the amount of 63.9 billion lek. Social and Health Insurance with 13.5% in the amount of 26.23 billion lek, Others with 12.5% in the amount of 24.4 billion lek, Withholding Tax with 3.6% in the amount of 7 billion lek, Personal Income Tax with 1.5% in the amount of about 2.9 billion lek and DIVA with 0.5% in the amount of 919 million lek.
Compared to the end of 2024, during this year, unpaid liabilities of businesses regarding Profit Tax have increased by 21.8 billion lek, VAT has increased by 6.7 billion lek, Social and Health Insurance by 1.9 billion lek, while other items such as Withholding Tax, Personal Income Tax and DIVA have a smaller increase.
Referring to the age of outstanding liabilities, it is noted that the youngest liability was collected using the risk profile analysis (the youngest liability and the highest value) as well as by following the self-declarations for each month by the “Monitoring and Analysis Sector” in the Collection Regions, in order to increase the performance in the collection of tax liabilities. The key indicator for assessing the performance of the Directorate for the Collection of Unpaid Tax Liabilities is the ratio of tax liabilities collected during the year to liabilities added in the same year. For the year 2025, this indicator was achieved at the level of 52%.
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