Albania Company Annual Compliance: Everything Your Sh.p.k Must File Each Year

Under Law No. 25/2018 on Accounting and Financial Statements, every Albanian limited liability company (Sh.p.k.) carries a fixed set of annual obligations regardless of whether it traded actively, made a profit, or even issued a single invoice. The Albanian Tax Administration (Drejtoria e Përgjithshme e Tatimeve) and the National Business Registry (QKB) both impose year-end obligations that run independently of each other. Tax filings go to the tax authority via tatime.gov.al. Financial statements go to QKB. Social insurance reconciliations go to ISSH.

The compliance year for prior-year filings runs from January through March. The busiest month is March, when financial statements must be signed off and the corporate income tax return submitted. Companies that leave everything to the final week of March consistently run into accountant availability problems and rushed filings.

Monthly accounting for a small Sh.p.k. costs ALL 15,000 to 35,000 per month (EUR 129 to EUR 302) -- far less than the cost of a single late-filing penalty. An annual statutory audit, where required, runs ALL 150,000 to 500,000 (EUR 1,293 to EUR 4,310). This guide uses verified rates from PwC Albania Tax Summaries, KPMG Albania, and Eurofast Albania Tax Card 2025.

If your Sh.p.k. employs anyone, you must issue each employee an annual income certificate (vertetim i te ardhurave) by January 31. This document confirms gross wages paid and PAYE tax withheld during the prior year.

The monthly listepagesa (e-payroll) filings submitted throughout the year must also be reconciled against actual ISSH contributions paid. Employer contributions total 16.7% of gross wages -- 15% social insurance plus 1.7% health insurance. Employee contributions total 11.2% -- 9.5% social insurance plus 1.7% health insurance. From January 2026, the minimum monthly wage is ALL 50,000 (EUR 500), so minimum combined contributions per employee are ALL 13,950 per month.

January reconciliation confirms that what was reported on each monthly listepagesa matches what was actually deposited. If an employee's ISSH contributions were underpaid at any point during the year, the correction must go through the ISSH portal before the annual reconciliation closes.

Your accountant should also begin compiling the prior year's books in January: bank reconciliations, accounts receivable and payable aging, fixed asset schedules, and accruals. Starting early is the only way to meet the March 31 deadline with accurate figures.

If your Sh.p.k. is registered for VAT (TVSH), February is when the annual VAT reconciliation is prepared. This cross-checks total output VAT charged across all 12 monthly TVSH returns against annual revenue, and total input VAT claimed against expenses. Albania's mandatory VAT registration threshold is ALL 10,000,000 annual turnover (EUR 100,000). The ALL 10,000,000 threshold applies to the professions too; the old rule requiring certain professions to register regardless of turnover was abolished in 2021 (VKM 576/2020).

Monthly VAT returns (TVSH) remain due by the 14th of each following month throughout the year. The annual reconciliation does not replace these -- it confirms they were filed correctly.

Albanian company law requires the shareholders' assembly to formally approve the prior year's financial statements. This meeting is typically held in February once draft accounts are ready. The resolution formally accepts the financial statements and decides on profit distribution. If dividends will be declared, the resolution must state the amount per share.

The CIT return covers the prior calendar year and must be submitted via tatime.gov.al by March 31. The return is filed alongside the company's annual financial statements.

Albania's company tax rates for 2026 under the current Income Tax Law (effective through December 31, 2029 for transitional provisions):

• 0% rate: Companies with annual turnover up to ALL 14,000,000 (EUR 140,000) benefit from a 0% profit tax rate under the transitional small business provisions.
• 15% standard rate: Applies to taxable profits of entities with turnover exceeding ALL 14,000,000 (EUR 140,000).
• 5% sector rates: Software development (through December 31, 2025), agricultural cooperatives, agritourism, and select automotive companies (through December 31, 2029).

Advance CIT payments are required throughout the year based on the prior year's CIT liability, due by the 15th of each month (within the month itself), or alternatively by the end of each quarter (31 March, 30 June, 30 September, 31 December). The March 31 return calculates the final liability and any balance owed after all advance payments. If advance payments exceed the final liability, the company can request a refund or carry the credit forward against future advance payments.

All Sh.p.k. companies must prepare a balance sheet (bilanci) following the process in our financial statements filing guide and profit and loss statement following Albanian National Accounting Standards (NAS/SNK). They are submitted to the tax authority together with the CIT return by March 31. The separate deposit of the annual financial statements at QKB has its own, later deadline: under Law No. 25/2018 the statements must be filed with QKB within 7 months of the year-end, meaning by July 31 for a calendar-year company. Missing the QKB deposit carries a flat ALL 60,000 fine.

The statements must bear the stamp and signature of an IKM-registered approved accountant (Kontabilist i Miratuar). Companies that skip the shareholders' meeting and try to submit unsigned or unstamped financial statements will have their CIT return rejected by the tax authority portal.

A Sh.p.k. requires a mandatory independent statutory audit if it exceeds two of the following three criteria for two consecutive years:

• Total assets at year-end above ALL 50,000,000 (EUR 500,000)
• Annual turnover above ALL 100,000,000 (EUR 1,000,000)
• Average employees above 30

Companies below these thresholds can have their accounts signed off by the company's own IKM-registered approved accountant without an external audit. For companies approaching the audit threshold, coordinate with the statutory auditor early to avoid timeline conflicts before March 31. See also our guide to forming an Sh.p.k. in Albania for initial registration requirements.

Annual compliance depends on monthly filings being current. Three obligations run throughout the year:

• VAT return (TVSH) -- due 14th of each month: File and pay output VAT less input VAT for the prior month. Failure to file: ALL 10,000 (EUR 86) penalty. Late payment attracts daily interest.
• Payroll and social insurance (listepagesa) -- due the 20th of the following month: File the e-payroll declaration for each employee and pay ISSH contributions. Failure to register an employee: ALL 200,000 fine per undeclared employee for a company registered for VAT and profit tax (Law 9920 Neni 119), plus back tax and contributions. The lower ALL 50,000 figure applies only to taxpayers not registered for VAT or profit tax.
• Fiskalizimi (fiscal invoicing) -- every transaction, in real time: Every sale must generate a fiscalized invoice through the government's e-invoice system. Failure to issue a fiscal invoice is penalized on a tiered basis under Law 9920 Neni 123: a first offense is ALL 25,000, ALL 50,000, or ALL 75,000 depending on taxpayer type, with a VAT and profit-tax legal entity in the top ALL 75,000 tier; a repeat offense rises to ALL 50,000, ALL 100,000, or ALL 500,000 plus a 30-day closure of the business. This is not a quarterly or annual obligation -- it applies to every single transaction. For more detail on VAT thresholds, see our guide on VAT registration in Albania.

For all Albanian tax rates including VAT, CIT, and personal income tax in one place, see Albania tax rates 2026.

If your Sh.p.k. decides to distribute profits, the shareholders' assembly passes a resolution declaring the dividend amount. Albanian withholding tax of 8% applies to dividends paid to all shareholders, whether resident or non-resident.

Under the current Income Tax Law (Law 29/2023) the 8% is withheld when the dividend is actually paid, and no later than the end of the third month after the shareholders' decision to distribute the profit. It is then declared and paid through the withholding-tax return by the 20th of the month following that tax period. If no dividend is distributed, no dividend withholding tax is due. For foreign shareholders, the 8% rate applies unless a Double Tax Agreement (DTA) between Albania and the shareholder's country provides a reduced rate. Albania has about 40 double taxation treaties.

If the company has retained losses from prior years, dividends cannot legally be distributed. The financial statements must show a distributable profit before any resolution is valid.

A common trap for Sh.p.k. owners: taking money from the company bank account without proper documentation. If a company lends money to its director or a shareholder without a written loan agreement and without charging a market interest rate, the Albanian tax authority treats the amount as a constructive dividend or a taxable benefit.

The consequences: the amount gets reclassified, 8% withholding tax applies as if it were a dividend, and interest may be charged on the unpaid tax. During a tax audit, undocumented director loans are one of the first items inspectors check.

Document all loans in writing, charge the market interest rate, and ensure repayments are tracked separately in the accounts. This is a straightforward area to get right if your accountant flags each loan at the time it occurs.

The National Business Registry (QKB) monitors whether companies remain active based on their filing history. There is no separate annual confirmation fee, but QKB can mark a company as inactive if it fails to submit annual financial statements. An inactive status creates problems when the company needs to bid for contracts, open bank accounts, or apply for permits.

Keeping CIT returns and financial statements filed on time automatically maintains the company's active status at QKB. Companies that miss multiple years of filings may face administrative deregistration proceedings. Companies with past non-compliance may also benefit from the 2026 fiscal amnesty provisions.

Penalties compound quickly. A company that misses the CIT return, has three uninvoiced transactions, and has one unregistered employee faces a minimum of ALL 435,000 (EUR 3,750) before interest (CIT return ALL 10,000, plus three fiscal-invoice failures at the ALL 75,000 legal-entity tier, plus ALL 200,000 for the undeclared employee).

• Late or missing CIT return: ALL 10,000 (EUR 86) per missed return for a corporate taxpayer (Law 9920 Neni 113 sets the fine by taxpayer type, not by offense number)
• Late or missing VAT return: ALL 10,000 (EUR 86) plus daily interest
• Missing fiskalizimi invoice (legal entity, first offense): ALL 75,000 per transaction, rising to ALL 500,000 plus a 30-day closure on repeat
• Unregistered employee (VAT/profit-tax company): ALL 200,000 per undeclared employee, plus back tax and contributions
• Late CIT advance payment: 10% of unpaid installment

Late payment interest accrues daily on any outstanding tax balance. These are administrative penalties only -- persistent non-compliance can also trigger a full tax audit covering multiple prior years.

Monthly accounting for a small Albanian Sh.p.k. covers: recording all transactions, generating fiscal invoices, filing the monthly VAT return, running the e-payroll system, and paying ISSH contributions. Annual work adds: preparing financial statements, organizing shareholders' meeting documentation, filing the CIT return, and completing the ISSH annual reconciliation.

Choosing an IKM-registered approved accountant is not optional for the financial statements -- the law requires the accountant's stamp and signature. The relationship works best when the accountant has access to bank statements, invoices, and expense records throughout the year. Many Tirana accountants now request read-only access to the company's bank portal and the tatime.gov.al account so they can monitor filing status and flag issues before deadlines hit.

When selecting an accountant, verify their IKM registration number. Unregistered individuals offering accounting services cannot legally sign financial statements, and work they produce cannot be submitted to the tax authority. IKM maintains a public list of registered approved accountants (Kontabilistë të Miratuar).

For professional monthly accounting services for your Sh.p.k., see our accounting services. For a full guide to registering your company, see how to set up an Sh.p.k. in Albania.

January:

• Issue annual income certificates to all employees (by January 31)
• Reconcile ISSH contributions for the prior year
• Begin compiling prior-year accounting records

February:

• Prepare VAT annual reconciliation
• Hold shareholders' assembly to approve draft financial statements
• Pass resolution on profit distribution (if applicable)

March (deadline: March 31):

• Finalize signed financial statements (IKM-registered approved accountant stamp required)
• File CIT return with the annual financial statements via tatime.gov.al
• Pay any CIT balance due
• Where dividends are declared, declare and pay the 8% withholding through the withholding return by the 20th of the month following payment

July (deadline: July 31):

• Deposit the annual financial statements with QKB (within 7 months of year-end)

Monthly (year-round):

• VAT return by 14th of each month
• Listepagesa e-payroll by the 20th of the following month
• Fiscal invoice for every transaction (fiskalizimi)