FLASH
Shkruar nga Klodian Tomorri
The promise, which only a short time ago, Prime Minister Edi Rama trumpeted that by 2030 small businesses would pay zero tax, was quickly blown away.
Starting from January 1, the tax hammer will fall on the vast majority of small businesses, practically on all those operating in the field of services. And it will be heavy. For small businesses with a turnover of up to 14 million ALL per year, the tax will be 15 percent. For those with a turnover of over 14 million ALL, the income tax rate will be 23 percent.
Two days ago, the government approved a decision defining the analytical list of so-called free professions.
"In accordance with Article 69 of Law No. 29/2023, as amended, the analytical list of economic activities of taxpayers, self-employed natural persons and entities that provide professional services, with an annual income of up to 14 million ALL per year, is defined. who will pay personal business income tax or corporate income tax, starting from fiscal year 2024," the government decision said.
Kapitali.al publishes the list of activities that will be taxed and it includes practically every service. The list contains a total of 170 service activities. (Click here for the list of businesses that will be taxed from January 1.)
Doctors, teachers, journalists, actors, athletes, consultants, publicity agencies..., etc. etc. All of these from January 1 will try the government's tax tongs. This was the government's New Year's gift.
Turnover tax
The problem with freelancers is that they have no expenses. Or they have negligible. Practically all turnover goes as profit for tax purposes. Therefore, the tax rate is applied almost on turnover.
For small businesses, the government has left a space that they can choose by agreement to recognize as expenses 30 percent of the turnover. While the other 70 percent will be taxed at 15 percent.
The point is, a self-employed person who has collected 5 million ALL from his business will be able to recognize a maximum of 1.5 million ALL as expenses. The difference of 3.5 million ALL is taxed in full at 15 percent. Which means that this business must pay 450,000 ALL in income tax per year. In short, almost 400 euros per month.
Zero tax is a privilege for billionaires
But a week before the government sent the bitter postcard to freelancers, it sent another postcard. This time sweet. At the penultimate meeting, the government approved the special status for the Whitë Roads hotel in Dhërmi of the Gjikuria company.
Special status means zero income tax, zero infrastructure impact tax and only 6 percent VAT on everything. Previously, the Balfin Group received the same status for the hotels in Palasa, and all the big investment in tourism are next in line.
But big resort corporations aren't the only ones doing tax-free business. The same privilege has the yard companies that work in the field of IT. For the latter, the privilege is justified by the development of programming and coding activities in the country.
So the big IT companies, which receive tenders with monstrous inflation of costs from the state budget, pay only 5 percent tax on profit. Freelancers will pay 15 percent of turnover.
As Abraham Lincoln once said, "Government of the people, by the people, for the people."
Lini një Përgjigje