Shqipëria Posted on 2025-10-16 13:46:00

The number of taxpayers in Albania increases - Withholding tax, 7,491 more registered in August alone

From Elisabeta Dosku

The number of taxpayers in Albania increases - Withholding tax, 7,491 more

The number of registered taxpayers in the country has experienced a significant increase during August 2025, compared to the same period last year. According to official data from the Tax Administration, 7,491 more taxpayers were registered for withholding tax than in August 2024.

This growing trend is seen as an indicator of the expansion of the taxpayer base and the increasing formalization of the Albanian economy, which is also a result of the daily anti-informality actions being undertaken by the tax administration.

But on the other hand, this growth is related to the improvement of digital services, the simplification of business registration procedures, and the greater awareness of entrepreneurs about their fiscal obligations.

But what is "withholding tax"?

Withholding tax is a form of tax collection where the payment of the tax liability is made at the time of the transaction, by the payer of the income himself. This means that the entity making the payment (such as the employer, financial institution or other business) automatically deducts the tax before making the payment to the beneficiary. This method is widely used for income from wages, rents, services or profits from interests and dividends. The withholding tax is at the rate of 15% of the gross amount of payments from wages, rents or other income arising from a source in the Republic of Albania and 8% of the gross amount for dividends and profit sharing.

According to experts, the withholding tax system helps reduce tax evasion and increase transparency in revenue collection, as it eliminates delays or evasions in tax declarations.

Meanwhile, the Tax Administration has warned that it will continue its objective of increasing field controls to avoid tax evasion, but also to support taxpayers in fulfilling their obligations in a fair and easy manner.

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