The Tax Committee of FIAA met with the larger base of the members and made a presentation of the key Changes and main challenges encountered in the Newly approved Law on Income Tax that will be effective from January 1st 2024. In this meeting was present Mrs. Zarina Taja, Director of Fiscal Harmonization Directory in the Ministry of Finance and her Team, who have been continuously cooperating with FIAA Representatives during the Draft Law consultation phase.
The Tax Committee of FIAA has been intensively engaged in numerous consultations with the Ministry of Finance and Economy and the Parliamentary Committee for Economy and Finance, providing valuable expertise and recommendations to improve the law and reach a Business friendly fiscal framework.
The new Law introduces new concepts and elaborates certain definitions compared to the existing law on the key element such as:
Ø Basis of taxation tax rates and compliance
Ø Non-deductible expenses
Ø Depreciation
Ø Inventory valuation
Ø Interest capping rule
Ø Bad debt
Ø Reorganizations & change of ownership for specific industries
Ø Capital gains, exit taxation and migration of a business
Ø Permanent establishment
Ø Withholding tax provisions
Ø Transitory provisions & entry into force
FIAA thanks the Ministry of Finance and Economy for their cooperation and dialogue in this important Law for the Business and looks forward to the next phase on the consultations for the Instructions and directives for the implementation of the Law.
