There are 23,000 employees in Albania, who receive a salary of over 200,000 ALL. With the fiscal system in force, they pay 23% tax on the income they receive, which is almost 2 times higher than the tax for salaries under 200 thousand ALL.

But, this tax will change.

Under current law, taxable income from employment is taxed at progressive rates of 0.13 and 23 percent.

So, income from 600,000 to 2,040,000 ALL is taxed on an annual basis at a rate of 13% and annual income over 2,040,000 ALL is taxed at 23%.

With the legal changes that are expected to be approved, the 23% tax rate will be applied to annual incomes over 2,600,000 ALL, in other words for salaries over 217,000 ALL per month.

In the figures, there are about 680 thousand employees, who last year paid 57 billion ALL to the state treasury, or 12 billion ALL more than in 2022.

For the government, the decision to ease taxation is imposed by the stable situation the country is going through and the increase in efficiency in revenue collection.