The Prime Minister of Albania Edi Rama announced on a press conference that the government has cut taxes to zero for small businesses whose annual turnover is between 0 – 50.000.000 Albanian LEK, or around 36,400 Euros.
"All businesses that have an annual turnover no more than 36,000 Euros in a fiscal year, will not pay any tax. While any other business that has a turnover between 36,000 – 58,200 Euros (Approximate value), while remain subject to VAT, while the tax on profit while drop from 7.5% to 5%.
Shqip should be easy enough to learn...
This discussion has been archived.
No new comments can be posted.
Zero Taxes for Startups in Albania
|
Log In/Create an Account
| Top
| 11 comments
| Search Discussion
The Fine Print: The following comments are owned by whoever posted them. We are not responsible for them in any way.
(Score: 1) by hedleyroos on Wednesday November 25 2015, @01:04AM
Maybe clean up the summary a bit? The word "while" is misused.
(Score: 2) by Geotti on Wednesday November 25 2015, @01:18AM
I heard the Bahamas are great this time of the year... But nice try, Mr. Rama.
(Score: 0) by Anonymous Coward on Wednesday November 25 2015, @03:57AM
Prostitution is legal in parts of Nevada [wikipedia.org] (also, there's no state income tax for individuals or corporations, but there's a payroll tax after $50,000 [nv.gov]).
(Score: 1) by nitehawk214 on Wednesday November 25 2015, @01:49AM
Yeah, well it is in a different galaxy.
"Don't you ever miss the days when you used to be nostalgic?" -Loiosh
(Score: 3, Funny) by aristarchus on Wednesday November 25 2015, @04:27AM
Looks like Somalia will have some competition for the title of "Libertarian Paradise"! https://www.youtube.com/watch?feature=player_embedded&v=7QDv4sYwjO0 [youtube.com]
But I imagine that Albania may not allow open carry, or weapons possession at all, unless you are heading immediately to Kosovo. So it looks like the discontent Ayn Rand readers of America will have to keep looking for that ideal "Galt's Gulch".
(Score: 2) by Anne Nonymous on Wednesday November 25 2015, @05:49AM
> annual turnover no more than 36,000 Euros
Gee. Big spenders.
(Score: 2) by frojack on Wednesday November 25 2015, @06:30AM
Average gross salary [wikipedia.org]
385 € / 430 $, monthly.
So, that 36,000 euros looks pretty it could support about 10 people on average wages.
Companies that size shouldn't be paying taxes anyway.
No, you are mistaken. I've always had this sig.
(Score: 2) by SanityCheck on Wednesday November 25 2015, @02:35PM
Yes and no. I admire the desire to help new companies, having been part of startup scene here in NJ for some time. Most startups in pre-revenue phase don't pay taxes anyhow. I suppose trying to help a company with some revenue is seen as a way to give the company more money to reinvest int heir employees.... yeah that will happen.
But having a system like that does offer avenues for abuse. I could divide my company into 10 startups, each one doing only one function of the business model.
This kind of abuse happens in the US all the time, where a company will eliminate a department, firing everyone, and create a separate contractor that tries to hire the fired employees for less pay and no benefits. If you live paycheck to paycheck, you pretty much have no option. You can't risk looking for work for too long, so you just got bamboozled. Sometimes they will just hire back the most productive and least expensive (read youngest) employees, giving them a small raise (but not enough to cover the loss of benefits).
If there is a way to abuse a system, and this one is ripe for it, someone will do it. And because of competition soon everyone will do it.
(Score: 2) by Phoenix666 on Wednesday November 25 2015, @03:23PM
Yes, except for those pre-revenue startups who win competitions and hope to use that money as seed capital, only to have the IRS tax the crap out of it.
Washington DC delenda est.
(Score: 2) by frojack on Wednesday November 25 2015, @09:09PM
Two points:
One: The abuses you are talking about generally don't happen with startup companies. It takes a while for start ups to acquire that level of desperation.
Two: The story is about Albania, not New Jersey. My Uncle spent time in both places. He says your confusing the two is not that unusual.
No, you are mistaken. I've always had this sig.
(Score: 2) by gnuman on Wednesday November 25 2015, @04:45PM
I'm not in EU, I don't know how your VAT is suppose to work. But here in Canada, businesses do not normally pay VAT** (GST/HST) but are required to remit it. Which means if businesses have $100k in sales, they remit the VAT on those sales which they collect from customers less VAT that businesses pay on their supplies. For tiny businesses (less than about $30k a year in sales), there is an option not to register for VAT collection, but then those cannot claim VAT paid by business as credit either - this option is to reduce "paperwork". But in general, businesses just collect and remit VAT to Revenue Canada and do not pay it on their own supplies.
So how does that work in EU? Businesses collect VAT but do not have to remit it? 20% subsidy?
** yes, some provinces in Canada have PST which is regressive VAT and businesses have to pay that too, but that's only few backward provinces.