In continuation of its collaboration with Higher Education Institutions in the country, on April 2, 2025, Studio Legale Albania participated in the job fair organized by Barleti University, titled “UniBa Work Fair”, which took place at Campus 2 in Tirana.
Students and attendees were introduced to information regarding legal services, as well as opportunities for internships, training programs, and employment at Legale Albania. The fair commenced with an opening address by the Rector of the University, Prof. Dr. Suzana Guxholli, who expressed her gratitude to the participating businesses and encouraged further collaboration between the University and the attending enterprises.

With the publication in the Official Gazette dated October 22, 2024, Joint Instruction No. 196, dated October 14, 2024, titled "On Cooperation Between the Structures of the Ministry of the Interior, the Ministry of Economy, Culture, and Innovation, and the State Information Service Regarding the Procedures for Issuing Residence Permits for Foreigners" has come into force.
According to the provisions of this instruction, the procedure for obtaining employment approval from the National Employment and Skills Agency (AKPA), the application for a type "D" visa, and the request for a unique residence permit can now be completed online through a single application on the e-portal Albania. This means that data will be processed simultaneously across three electronic systems: a) the e-Visa system; b) the Employment Services System; and c) the FER System.
The application is submitted using a unified form, allowing foreigners to provide the necessary information only once to confirm their work permit, obtain a visa, and ultimately receive the unique residence permit.
According to this instruction, the responsible structures of the local and central border and migration authority, the relevant criminal information units within the State Police, and the appropriate structures of the State Intelligence Service will participate in the evaluation process for issuing the Unique Permit or Residence Permit in special cases.

For more information, please contact: [email protected]

"Legale Albania" has extensive expertise in advising domestic and foreign commercial entities (in particular), and it consistently assists foreign citizens who work in the Republic of Albania with the procedures of residence permits. Many of them act as shareholders and administrators at the same time. According to Albanian immigration law, both kinds of foreign citizens enter Albania for employment purposes. However, the type of residence permit they apply for varies depending on their commitment and quality of work report, for which the law for foreigners frequently leaves room for different interpretations. For this reason, we have asked for an official interpretation of the law in force for determining their legal status and for this case, we have addressed the Department for Border and Migration in the State Police. The Border and Migration Directorate's response outlines the differences in treatment as follows: if a foreigner works as an administrator for a company but is not a shareholder, he is considered an employee of the company and is given a special permit. If a foreign citizen works as the administrator for a company but is also a shareholder in the company, he is considered to be self-employed in his company and is given a special permit as self-employed. The Administrator is able to run his business from anywhere in or outside the Republic of Albania, depending on where he is physically located. If the Administrator (foreigner), for good reasons, is unable to remain on the territory of RSH for up to 180 days, he must first notify DVKM of the reasons for departing Albania (Article 36, Law 79/2021 "On Foreigners"). If the foreigner, administrator, as employed or self-employed, wants to stay in Albania and needs a permit to do so, he must fulfill the requirements to be given a unique permit. The Legislation does not limit where a foreign citizen can stay when it comes to accommodation. It is sufficient to demonstrate that he has booked an acceptable accommodation for the entire duration of his stay, for which he is asking for the issuance of a unique permit. (VKM no. 858, dated 29.12.2021, Chapter III/B/3).

In Official Journal No. 105, dated 13.07.2023, Law No. 47/2023 "On some additions and changes to Law No. 15/2019 "On promoting employment", approved by the Assembly of the Republic of Albania on 22.06.2023. By means of this Law, the procedural gap regarding the payment of a monetary value for the account of the Social Employment Fund is also regulated, since it is already established that the Employer is obliged to pay a contribution of 100 percent of the salary every month for the account of the Social Employment Fund minimum nationwide, if it does not employ 1 person with disabilities for the first 25 employees of the enterprise and one additional person for every 50 other employees. The collection of the contribution paid by the employer will be monitored by the General Directorate of Taxes and any violation found in non-implementation of this obligation will be considered by the state inspectorate that covers the field of work as an administrative offense and will be punished with a fine according to provisions of the law on labor inspection. The Ministry of Finance is tasked with approving, in implementation of this law, the sub-legal act on the procedures and method of collecting the contribution for the Social Employment Fund, by 31.12.2023. This law enters into force 15 days after its publication in the Official Gazette.

The “Legale Albania” Law Firm, represented by Lulzim Alushaj in collaboration with Xhesilda Balashi and Eva Priska, in an administrative proceeding before the Administrative Court of First Instance of Tirana where it represents a commercial entity, subject to the provisions of Law no. 112/2020, has filed with the latter an application for an incidental constitutional review of paragraph 4 of Article 13 and paragraph 6 of Article 15/1 of Law no. 112/2020 “On the register of beneficial owners”, amended in relation to other constitutional provisions. This application is the consequence of a specific case where QKB, on the basis of the aforementioned provisions, interpreted the law and subsequently changed the status of the Company in the Commercial Register from “active” to “suspended” until the payment of the fine and the registration of the data for the beneficial owners. Subsequently, the Company made an application for the change of registered office, which is mandatory for every legal entity, which was rejected by this institution, based on paragraph 4 of Article 13 and paragraph 6 of Article 15/1 of Law No. 112/2020, as amended. The application of these provisions and the serious measures provided for therein, flagrantly violate the fundamental rights and freedoms of the Company and of any legal entity, guaranteed not only by the Constitution but also by international law that Albania has ratified. Precisely these drastic measures, the suspension of the activity and also the fact of not allowing the registration of the registered office of the company, violate the purpose for which this company was established, namely the right to exercise economic activity and to do business, for which it finds no compatibility even with the acquis communautaire and the jurisprudence of the European Court of Justice. Consequently, this case has become a cause for requesting during the administrative trial the interpretation at the constitutional level not only for the defense of the interests and rights of the company, but of any legal person registered under Albanian law. It will be the Administrative Court of First Instance of Tirana that will assess whether the conditions exist to submit an application to the Constitutional Court for the constitutional control of the law.

Following the approval of the new law no. 29/2023 “For Income Tax”, which defines some new rules on taxation for personal income and corporate profits, on 7 June 2023 the Council of Ministers approved the Regulatory Act “For some additions to Law no. 29/2023, “For Income Tax” to provide some benefits and the possibility of increasing liquidity for exporting entities, who have recently been affected by the currency exchange rate. “Exporting taxpayers, who during the year 2022 exported no less than 70% of the total value of sales, including exports, do not pay the installments which are usually paid in advance in the months of June, September and December of the year 2023”. Therefore, with the entry into force of this Regulatory Act, all exporting entities that export more than 70% of their products will not advance the installments of the profit tax for the months of June, September and December 2023. Only if the exporters are profitable (end of the 2023 financial year) will they pay the profit tax, instead, in case of losses they will not pay this tax.

On 13.04.2023, the Government of the Republic of Albania approved Law No. 30/2023 “For certain amendments and additions to Law No. 97/2013 “On audiovisual media in the Republic of Albania”, as amended. This law has been aligned with the European Directive 2018/1808 of the European Parliament and of the Council of 14 November 2018, which amends Directive 2010/13/EU “For the coordination of certain provisions laid down by law, regulation or administrative act in the Member States concerning the provision of audiovisual media services (Audiovisual Media Services Directive)”, taking into account the changes in market realities. Through Law No. 30/2023, the subject matter and scope of application of Law No. 97/2013 also extending to the services of video distribution platforms, meaning by these the provision to the general public of programs, videos made by the user or both together, for informational, entertainment or educational purposes through an electronic communication network for which the subject, therefore the provider of the video distribution platform, has no editorial responsibility. With regard to the providers of video distribution platforms, Law no. 30/2023 has established the rules and methods according to which the services of video distribution platforms will be provided, purposes, prohibitions, obligations towards the AMA and the general public, the measures that must be adopted to fulfill the obligations and sanctions in case of violation of the obligations, etc. Furthermore, according to the provisions of Law no. 30/2023, in case the headquarters of a media service provider is located on the territory of the Republic of Albania, but the editorial decision is made in an EU country, it is presumed that such provider is under the jurisdiction of the Republic of Albania, provided that the majority of the staff involved in the production of its programs operates in Albania. When a significant part of the staff involved in the production of the media service provider's programs operates in Albania and in another EU country, it is presumed that such provider is located in the Republic of Albania if its headquarters is located in that territory.

Changes in the tax procedures law no. 9920/2008, with Law No. 83/2022, dated 24.11.2022, published in Official Gazette No. 173, dated December 22, 2022, have introduced into the tax procedural legislation giving a new possibility of tax assessment to the Tax Administration. It is about article 71/2 of this law titled "Use of alternative assessment methods in cases of tax avoidance actions and abuse of tax law principles" which gives the Tax Administration the opportunity to "not take into consideration agreement or series of agreements concluded between taxpayers, which have as their main purpose or one of the main purposes the provision of tax benefits". This provision, although in content it seems to conform to the OECD acts, the jurisprudence of the Court of Justice of the B.E. and the normative provisions in the Directives within the B.E., can actually turn into an important problem in terms of its application in practice. The situations related to the time period of application of the non-recognition of agreements between taxpayers by the tax administration, the procedural guarantees of taxpayers related to such an aggressive tax procedure, the possibilities for the taxpayer to request are unclear and not correctly regulated, with these changes by the tax administration, interpretation/preliminary approval of commercial agreements, calculation of values ​​and the impact that these decisions bring to commercial subjects.

The Association of Italian Entrepreneurs in Albania (A.I.I.A), a member of CONFIMI INDUSTRIA ITALI, usually promotes its activity in the Republic of Albania and seeks to cooperate with the realities of the Balkan or Italian Confindustria. The Association seeks to advance, in society and among entrepreneurs, etc., within the framework of the roles played by system components, skills, and delegated competencies; to represent and protect, within the bounds of this statute, the sector of production of goods or services in its cultural, economic, and productive progress; etc. By registering the new appointments in the Non-Profit Organizations (NPO) register at the Tirana Judicial District Court, the Association of Italian Entrepreneurs in Albania has completed renewing the responsibilities of the new bodies of the Association as required by law. Following the election, Adv. Lulzim Alushaj was appointed one of the 5 (five) members of the Executive Council of the Association of Italian Entrepreneurs in Albania - A.I.I.A., with a mandate of 2 (two) years.

Since 2020, the Republic of Albania has entered into force law no. 112/2020 “On the Register of Beneficial Owners”, which has undergone a rapid change also with Law no. 6/2022 “On some changes and additions to the law no. 112/2020, “On the register of beneficial owners”. Considering that, this national law is partially aligned with Directive (EU) 2015/849 of the European Parliament and the Council, dated 20 May 2015, “On the prevention of the use of the financial system for the purposes of money laundering or terrorist financing”, it takes value and importance the jurisprudence of the Court of Justice of E.U on the regulatory aspects of the Directive cited above. Recently, through the pre-trial pronouncement mechanism, according to the provision of Article 267 of the Treaty on the functioning of the E.U., the tribunal d'arrondissement de Luxembourg has presented to the Court of Justice two requests for interpretation of this Court regarding the rejection of the request made by the beneficial owner to the public authority that administers the data of the beneficial owners in Luxembourg, to prohibit the public access on the information of the beneficial owners. The Court of Justice, after considering the institutes of the public access to beneficial owner information - Articles 7 and 8 of the Charter of Fundamental Rights in E.U. that protects fundamental rights such as respect for private and family life, protection of personal data, with the decision of its Grand Chamber, dated 22.11.2022, has decided that Article 1, point 15, letter c) of Directive (EU) 2018/ 843 of the European Parliament and the Council is invalid in the part where it is predicted that the member states take measures so that the data and information on the beneficial owners are accessible in any case by the public. With this decision of the Court of Justice, the intervention of the public authorities of the member states is limited and balanced in its intervention in the aspects of private and family life, in the provisions of the protection of personal data.

“Legale Albania” has provided legal service during all contractual phases to Blueberry’s Production, the cinema production company of the film “Policë për kokë”. There have been a local and international cast and crew. On January 11, 2023, the movie had its premiere at the “Millennium” Cinema in the presence of many celebrities from the world of entertainment, cinema, art, and cultural industries. Since many years ago, Legale Albania Studio has participated in numerous projects of the show world, assisting with film and television productions, and the most celebrities involved (as actors, directors, screenwriters, directors of photography, and music performers). The Studio has helped actors and other famous people to negotiate and reach deals in the film, television, and PR industries, and it continues to do so frequently.

"Legale Albania" is pleased to announce that, thanks to the development philosophy followed since its establishment, which coincides with the improvement of the quality of services to clients and the increase in standards of conditions for associates, starting from January 9, 2023, it will move to its new headquarters, which is located in the new building called "DOMUS Residence", situated in the center of Tirana on "Myslym Shyri" Street near the Court of First Instance Tirana. Investments in the new building provide the Law Firm with the latest communication technologies and significantly increase the functional area dedicated to its members and clients. It adds to the consulting services in its field of competence by providing access to a new environment that respects the highest standards of security, image, and functionality as deserved by the clients, staff, and the profession of Advocacy.

Legale Albania, with the team consisting of Av. Eva Priska and Av. Xhesilda Balashi, coordinated by Managing Partner Av. Lulzim Alushaj has assisted the Turinese Group in establishing and registering the new company in Albania. Following the various phases of national and international consultancy assisted entirely by Legale Albania Law Studio, it is announced that the phase of registration of an Albanian law company controlled by Tesi S.p.A., has been successfully completed. Tesi S.p.A. is a company operating in the field of Information Technology, establishing and distributing complete and reliable software solutions in over 40 countries worldwide. With its opening in Albania, the company expands its international objectives, offering collaborative software aimed at innovating clients' business processes, and helping them cope with the rapid evolution of technologies.

“Legale Albania”, represented by the lawyer Dr. Lulzim Alushaj in collaboration with the lawyer Xhesilda Balashi and the lawyer Eva Priska, has successfully concluded the practice followed in the interest of one of its client companies at all public institutions where legal intervention and advice/assistance was requested. This practice, one could say, completes one of the situations that can arise during the life of a company and can be considered as one of the “example” cases for other cases that have the same object. This is a case of request for the start of negotiations for the stipulation of the Collective Labor Agreement with a company under Albanian law, where the Union has turned to the Company for the start of the same. The Union has presented the request to the Company but without attaching any proof for the representativeness of the members, the number of members of the Union, while on the part of the Company as a first step for the start of negotiations, the evidence was immediately requested on the basis of article 163 of the Labor Code. The latter did not comply with this request as the Union initially simply presented a list of names and later a personal statement from the President of the Union on representativeness, which was rightly rejected by the Company as it did not comply with the criteria of the law in force. Under these conditions, the Union, pursuant to Article 192 of the Labor Code, submitted a request to the competent Ministry for the resolution of the dispute over the stipulation of the collective labor agreement with the Company, which was initiated for mediation procedures. During all the meetings held, initially with the intermediary officials members at the competent office at the Ministry of Finance and Economy, the reasons for the opposition by the Company were presented based on the provisions of law applicable to this case and that negotiations with the Company for the stipulation of the Collective Labor Agreement must be started when the Union presents the document proving its representativeness and membership and until this fact is demonstrated then there could be no negotiations between the parties. Since, even after several meetings, the mediation between the parties was not successful then, for the amicable resolution of the collective labor conflict between the parties, the members of the National Conciliation Office at the competent Ministry were called and brought together. In the meeting held by this Office, the representatives of the parties participated and, based on the subject of the request of the Union, it was decided not to accept its request as it was not based on a regular legal procedure. According to the decision of this Office, the Union, in addition to the written request, legal recognition and a copy of its statute, must submit proof of representativeness in the form required by law. The National Conciliation Office decides to confirm the reasoning used from the beginning by the professionals of Legal Albania in the defense of the Company, as it found its claims founded in the law.

The Supreme Court’s jurisprudence in cases involving “employment relations” is enriched by another ruling. In ruling no. 00-2022-946 (215), dated 06.06.2022 of the Civil Panel of the Supreme Court, a case was examined concerning company X, which by written agreement transfers a quantity of wells and assets as well as the list of its employees to company Y. After this moment, company Y starts the procedures for reducing employees, treating it as a collective dismissal of the transferred employees. In fact, the Labor Code establishes that, when the company or part of it is transferred, the transferor of the rights does not extinguish all obligations towards the employees, on the contrary, the transferor of the rights is liable towards the person who acquires such rights for the obligations arising from the employment contract. The Panel considered that in this specific case, we are faced with a transfer of business and consequently there has been a transfer of rights and obligations to company Y that derive from the employment contract that the employees had with company X. Consequently, the Panel considered that, following the transfer of this part of the business, company Y has undertaken to respect all the employment contracts in force before the transfer, with the same rights and obligations in quantity and quality that it had from company X; Subsequently, the Panel found that we are also faced with a collective dismissal which entails the obligation on the part of the employer to comply with the collective dismissal procedure, as provided for by article 148 of the Labour Code, otherwise he is charged with civil liability, obliging himself to compensate the employee; Coming to the conclusion that we are faced with collective dismissal from work and with the transfer of a business, the Panel has assessed that employer Y has the responsibility to compensate the employees, for the notification term procedure and at the same time is obliged to compensate the employee for seniority from work, in the form of material assessment.

Failure by reporting entities to comply with the legal obligation to initially register the data for beneficial owners or to update it whenever changes to such data occur will result in consequences, not only financial ones resulting from fines, but also related to the status of their activity on the procedure followed by the QKB. In the event of failure to comply with the above obligation, the QKB and the authority responsible for maintaining the Register of Non-Profit Organizations for reporting entities will change the status for such entities from “active” to “suspended” on the Commercial Register and the Register of Non-Profit Organizations, until the fine is paid and the data for beneficial owners is registered. Please note that from practice it appears that the QKB does not make a preliminary notification regarding the amount of the fine and subsequently the modification and change of the status of the reporting entity to suspended, but on the contrary the latter can only become aware of it on its own initiative from the note on the Chamber of Commerce certificate. Even the notification term, in case the subject intends to challenge this passage/note/decision of the QKB, starts from the moment of registration of the note at the QKB. From this procedure followed by the QKB it is uncertain, since neither Law 9901/2008 nor Law no. 9723/2007 do not provide for the "suspended status", what will be meant by the "suspended" status of the subject or whether this change of status will have consequences for the reporting subject as a taxpayer also in the tax administration.

Decision No. 328 of 18.05.2022 of the Council of Ministers “On some additions and amendments to Decision No. 1088 of 24.12.2020 of the Council of Ministers, “For the determination of the method and procedures for the registration and publication of data on beneficial owners, as well as notification by the competent State Authorities and by the obliged entities”, as amended, has been published and entered into force immediately after its publication in the Official Journal on 20.05.2022. According to this Decision, with regard to the request for initial registration and the registration of changes in the beneficial owner, compared to what is provided for in Decision No. 1088/2020 amended, the following additions and changes have been made: Regarding documentation: The person authorized for the electronic application shall attach documentation certifying that the registered beneficial owner holds 25% or more of the shares/units of the capital and any other documentation that the reporting entity holds for the identification and registration of its beneficial owner. In the event that the request for initial registration or registration of changes to the beneficial owner does not comply with the regulations on the beneficial owner register, the procedure for the suspension of shares for the registration of the request is applied and the QKB shall communicate to the reporting entity, by publishing in the register, the exact reason for the suspension: in the event of a request for initial registration of the beneficial owner, no later than 1 (one) working day from receipt of the request; and in the event of a request for registration of changes to the beneficial owner, no later than 2 (two) working days from receipt of the request; A 30-day deadline has been set to complete the deficiencies that hinder the registration request. Furthermore, as a reminder to each reporting entity, the initial registration of the beneficial owner is an obligation for non-compliance with which, by 06.30.2022, administrative sanctions of the value of Lekë 400,000 (four hundred thousand) will be applied.

By the decision of the Council of Ministers No. 158 dated 12.3.2022 “On the determination of the minimum wage at the national level”, the Council of Ministers decided to amend the determination of the minimum wage at the national level. According to this decision, the mandatory minimum monthly wage for employees at the national level to be implemented by every person, legal or natural, local or foreign is 32 000 (thirty-two thousand) Lekë. In addition, the above decision establishes that, the minimum monthly wage is given for 174 (one hundred and seventy-four) hours of work per month performed during normal working hours and the minimum basic hourly wage is 183.9 (one hundred and eighty-three point nine) Lekë. This decision comes into force immediately and extends its financial effects starting from 01.04.2022. Simultaneously with the above changes, Normative Act No. 4 dated 03/12/2022 “For an amendment to Law no. 113/2021 “For an amendment to Law no. 8438 dated 12/28/1998, “On Income Tax”, as amended”, which has modified and brought forward the deadline for the entry into force of the table for personal income tax from work according to which, the tax on profit from personal income from work decreases. This Regulatory Act has brought about amendments to Article 2 of this law where the words “…starting from the date of 1 July 2022…” are replaced with “…starting from the date of 1 April 2022…” .

Another very interesting and equally difficult administrative case was won by Legale Albania, which defended the position of a Company in its capacity as a Pharmaceutical Importer in Albania. After an administrative process that lasted several months and was defended by the professionals of Legale Albania, at the Administrative Court of First Instance of Tirana, the ruling was issued which accepted the claims of the client, a commercial importer in the pharmaceutical sector, revoking the decision to suspend the Administrative Contract between the Client and the Mandatory Health Care Fund (FSDKSH) which was unlawfully suspended by the latter. Together with the acceptance of the application on the merits, the request for provisional execution of the ruling issued by this Court was also accepted, obliging the FSDKSH to revoke the suspension of the Contract and immediately continue with the execution of the Contract.

In the Official Gazette No. 25 on 15.02.2022, Law No. 7/2022 “For an amendment to Law No. 9723, dated 03.05.2007, “On the registration of the company”, previously approved by the Albanian Parliament, was published. With Law No. 7/2022, changes have been made only to the values ​​of the fines provided for in points 2 and 3 of Article 74 (of Law No. 9723/2007, in cases relating to the declaration of false data to the register (when they do not constitute a crime) as well as the failure to perform, within the terms provided for by law, the obligation for initial registration and other mandatory registrations by companies. This amendment, which comes into force 15 days after publication in the Official Journal, has significantly increased the value of the fines in the above-mentioned cases, to 60,000 Lekë from 15,000 Lekë provided for in Law No. 9723/2007.

Following a request from the Administrative Court of First Instance of Tirana which requested the resolution of the dispute on the jurisdiction between the Administrative Court of Appeal of Tirana and the Administrative Court of First Instance of Tirana, the Supreme Court with decision no. 1762 dated 15.11.2021 underlined and confirmed the previous positions of the Constitutional Court expressed with decision no. 22 dated 11.04.2016 regarding the interpretation of Article 458 CPC on the jurisdiction of the court that will have to judge the requests for referral within the terms of the appeal. In the following and unchanged interpretation according to what was decided with the decision of the Constitutional Court cited above, the Supreme Court, the Administrative Panel specifies that: "among other things, considers that the phrase "the court that issued the judgment" must be understood as the court that issued the judgment, against which the parties were unable to appeal within the terms of the law. In other words, in the case where the parties request a reinstatement of the right of appeal (appeal) against the decision of the district court, the competent court to consider the request is the same court. In the case where the parties request a reinstatement of the right of appeal against the decision issued by the appellate court, the competent court to consider the request is the appellate court”.

HAPPY NEW YEAR 2022!

Assuming that many problems have occurred in the application of this law, in order to facilitate and fix the factual situation where only 1/3 of the reporting entities have been able to register the data of their beneficial owners, the Albanian Government and furthermore the Parliament are evaluating an intervention by proposing further amendments to the current Law no. 122/2020 "On the register of beneficial owners".

In the recently proposed bill, important amendments and additions have been made, which mainly consist of:

Extension of the deadline for the initial reporting of the beneficial owner by existing reporting entities with indirect ownership registered in the commercial register and by non-profit organizations until 01.04.2022.
Extension of the deadline for the initial reporting of the beneficial owner by reporting entities who register ex novo from within 30 calendar days from the date of registration of the reporting entity, to within 40 calendar days from the date of registration of the reporting entity.
Amnesty of fines imposed by the QKB before the entry into force of the bill, relating to failure to fulfill the obligation for the initial reporting of beneficial owners by reporting entities, provided that the reporting is carried out by 01.04.2020.
Increase in the amount of the administrative penalty that will be issued following the entry into force of the bill, based on the delay in fulfilling the obligation for the initial reporting of beneficial owners by reporting entities that register ex novo.
Provision of the procedure for suspending the application for a period of 30 days in the event of incomplete applications.
Removal of the penalty for the administrator in the event of failure to register the data of the beneficial owners of the reporting entities within the legal deadlines and inclusion of the value of this penalty in the penalties imposed on the reporting entities.
Starting from these essential changes, every existing reporting entity registered ex novo that has not registered within the previous deadline will have the possibility of completing the procedures provided for by Law no. 112/2022 on the registration of beneficial owners, also taking into account the additions and amendments mentioned above.

On behalf of the whole staff of “Legale Albania” Law Firm, we wish all Albanians everywhere the National Holidays of 28-29 November!

On November 25, 2021, was approved Law no. 113/2021 by the Assembly of the Republic of Albania with the proposal of the Council of Ministers. This Law has decided to replace List 1 provided in Law No. 8438 dated 28.12.1998 "On income tax", concerning the list on personal income tax from employment.

The new Law no. 113/2021, has made necessary changes compared to the List provided by Law no. 8438/1998, which will change the tax rate in percentage/monthly depending on salary income in lek/month and taxable income in lek/month.

List for personal income tax from employment

This law will enter into force 15 days after the publication in the Official Gazette and become effective starting from July 1, 2022.

According to an announcement on its official website “Tax Administration informs all taxpayers, that in cases when they make a request for change of business data, at the NBC counters or online through the e-albania portal, they must also verify the headquarters code on the SelfCare portal.

This verification must be performed after the Request for change in the NBC, is accompanied by a new case number (CN Case Number), which is reflected in the Tax system by generating a new Code of the headquarters. The generation of this new Code, mainly for an organization that has only 1 (one) headquarters, does not enable the regular activity of the taxpayer, in terms of the Fiscalization process.

After verification, if it turns out that a new Code of the headquarters has been generated, the taxpayer must immediately notify and make the new Code available to the certified software solution provider, who then performs the updates and enables the issuance of invoices”.

On 18.10.2021 is published the new Law no. 79 dated 24.06.2021 "On foreigners" in the edition of the Official Gazette no. 162 that repeals the Law no. 108/2013 "On foreigners". Bylaws for implementation of Law no. 108/2013 which are in contradiction to the provisions of this new law will be implemented until new bylaws of Law no. 79/2021.

The new law no.79/2021 "On foreigners" is partially approximated with the Directives, Decisions, Regulations of the European Parliament and the Council and aims at the principle of best interests of the child, the principle of the right to family life education, the principle of non- refoulement, the principle of fairness and transparency and the principle of non-discrimination.

This new law has changed the term "work permit" by defining it as a "unique permit" and has provided new types of unique permits by regulating the procedure and the right to appeal in each case. Also, some additions have been made to new terms related to "Au pair" foreigner, as key personnel and its categories, the motives of the residence permit, the issuance of a 5-year residence permit for Citizens of States United States of America, European Union member states and citizens of the Republic of Kosovo. It performs when they apply for the first time and meets the general criteria set out in the law.

Responsible Ministries will issue bylaws according to new Law no. 79/2021, within 3-6 months from the entry into force of this law.

Pharmaceutical Business Union (“UBF”), as a self-organized institution regularly registered in the relevant register at the Court of Tirana, has the priority of solving problems in the pharmaceutical field that affect its members and customers. UBF includes most of the companies in its membership operating in the pharmaceutical market with a very considerable volume of trade relations both in the country and abroad.

According to its needs, to improve the part of consulting and legal assistance related to membership and third parties, it has opened the competition with a selection procedure for a Law Firm that will follow the consultation at UBF.

At the end of this procedure, "Legale Albania" Law Firm was announced as a Consultant of the Pharmaceutical Business Union, which marked another success for it in the market of business consulting, this time to an organization that is a great actor in the pharmaceutical market with a scope and impact internationally recognized.

After negotiating between the contracting parties, the final version of the contract for the design, production and television broadcast of the show "Politiko" on the "Top News" channel on the National Television Top Channel was signed. The show, which has mainly as its object the treatment of political issues, will come in the format twice a week, Monday and Friday at 20.30, and will be presented for the whole season by the well-known journalist Mr. Alfred Lela.

The professionals of "Legale Albania" law firm, headed by Av. Dr. Lulzim Alushaj with the support of Adv. Xhesilda Balashi and Eva Priska, with extensive experience in such contracts in the field of television, have pursued all aspects about copyright, industrial property, compliance with applicable legislation mainly laws and regulations of the Audiovisual Media Authority (AMA), and compliance with the obligations that come as a result of a TV show in prime time. Link promo:

A new format is added to the market of political content TV programs on Top News on Top Channel, ranking Top Channel television in the first place nationally in terms of programming and viewership on Youtube.

There are many cases in practice when a company, for various reasons relating to internal or external circumstances, must be dissolved and then according to the procedures deregistered from the commercial register containing the NBC (National Business Center). Occurring in these conditions, the partners/ shareholders of the company have to follow some procedural alternatives that are mainly provided in Law no. 9901/2008 "On traders and trading companies".

Most of the cases proposed by professionals, whether they are Lawyers or experts in the field of fiscal, is that of liquidation in the state of solvency (Article 190 of Law no. 9901) or otherwise known as liquidation by appointment liquidator and which is practically the classic way of liquidation of a company which requires more time and which is associated with increased costs. The duration and costs of liquidation with a liquidator make many companies take no action keeping their businesses in an inactive state but registered with the NBC.

Law no. 9901/2008 provides another way of liquidation which is not much used by professionals in this field and is entitled "simplified liquidation". It is regulated by Articles 204 et seq. of the law, while the procedures followed in this case (fulfilling some preconditions that have do mainly with non-liabilities to third parties and employees) are much faster, lower cost, and ultimately achieve the same result.

Legale Albania selects and practices for years - in the commercial sections of the Courts according to the territorial jurisdiction where the headquarters of the companies are located - successfully simplified liquidation as an alternative to the classic liquidation by responding to the request of the subjects for their quick deregistration at the NBC.

On 15.07.2021 in the Official Journal was published the Decision of the Council of Ministers no. 418, dated 08.07.2021 “For an amendment in the Decision no. 953, dated 29.12.2014, “On the implementing provisions of law no. 92/2014, "On value added tax in the Republic of Albania", as amended, which enters into force immediately after publication in the Official Journal.

According to this Decision, the requests of VAT refund which are performed by taxable exporting persons and other taxable persons re-exporting non-Albanian goods under the inward processing procedure in the Republic of Albania, as defined in the Customs Code, are divided according to the categories mentioned below.

The first category includes taxable persons who re-export non-Albanian goods with zero risk under the Inward processing regime in the Republic of Albania, who will be reimbursed automatically within 30 (thirty) days from the date of submission of the request for VAT refund, must simultaneously meet the following criteria:

a) activity status "active";

b) the value of exports made in the tax period (s) for refund required, is more than 70 (seventy) % of the total value of sales, including exports, verified by customs reports of exports in the system;

c) have export activity over 1 (one) year;

ç) have no unpaid obligations of social and health insurance contributions.

The second category includes taxable persons, whose value of exports, made in the tax period/s for which the refund is requested, is more than 50 (fifty)% to 70 (seventy)% of the value general sales. This category also includes exports and is reimbursed within 30 (thirty) days from the date of submission of the request for VAT refund, previously subjected to the risk analysis procedure which ends together with the audit within 30 (thirty) days from the date of submission of the request. Even if the control procedure is not completed on time, within 30 days from the date of submission of the request for reimbursement, VAT is reimbursed through the treasury system, with the exception of requests of taxable persons that result in activity status "Liabilities", which will be mandatory reimbursed after the completion of the tax audit procedure. All other taxable persons who make exports, but who are not classified in the categories mentioned above, are reimbursed within 60 (sixty) days from the date of submission of the request for reimbursement, subject to the risk analysis procedure.

In the Official Gazette of 15.06.2021 was published Instruction no. 336, dated 10.6.2021 “For a change in the instruction no. 385, dated 13.10.2020, "On determining the criteria and procedures for obtaining a license for collective administration of copyright, its renewal, as well as determining the criteria and procedures for suspension and revocation of the license", under Law no. 35/2016, dated 31.03.2016, "On copyright and other related rights", as amended, which enters into force immediately after publication in the Official Gazette.

The latest changes relate to additional criteria for obtaining a license such as the Collective Rights Management Agency (AAK), which to perform the competencies of collective administration of copyright, in addition to what is provided in law no. 35/2016, dated 31.3.2016, they must now submit a written consent statement from the holders of rights that authorize them to administer their rights as well as evidence of the expression of will for mutual representation with foreign agencies in the Albanian language.

The deadline for submitting this statement is within 6 months after obtaining the license for the relevant category of copyright or other related rights.

For the renewal of the license, AAK must have a contract accompanied by complete lists of titles of works, which will be administered and must certify the observance of reciprocity relations with these foreign agencies that already have an agreement/contract.

These changes are necessary for the collective administration of copyright and other related rights, as the availability of a contract signed between an AAK and the right holders as well as the provision of what exactly these rights will be, indicates the avoidance of any abuse that may be made in connection with the administration of these rights and the numerous lawsuits that have had as their object precisely the contestation on the deficiencies listed above.

For more than 12 months, the whole world has been hit by the Covid-19 pandemic, but this shock is felt more in the organization and functioning of work in companies that have a large share in the high number of employees.

For the observance of legal restrictions and keeping distance, from the situation created by the COVID-19 pandemic in Albania, there are numerous Normative Acts of the Council of Ministers, converted into Law by the Albanian Parliament, orders and Protocols of the Ministry of Health which are still in force. All this measure of binding acts has put Albanian employers in difficulty to guarantee on the one hand the continuation of work and on the other hand to implement the mandatory norms for protection from the spread of Covid - 19.

Recently, the State Labour and Social Services Inspectorate, Tirana Branch, has issued a final inspection decision where gives a task to an Employer (as a result of Covid - 19, this Employer respects the distances and non-concentration of many people, organizes the work working two weeks from home and two weeks at work) to amends the individual Employment Contracts in force because that these new individual contracts for work at home should be concluded according to Article 15 of the Labor Code.

As a result of this amendment, according to Inspectorate, the Employer must pay all expenses in respect to the provision of Article 126 of the Labor Code.

In our opinion, these decisions, which have no logical connection with the current pandemic context and also with the national and international laws and legal acts in force, interfere with the contractual autonomy of the parties and are a liability and additional cost for companies that have a relatively high number of employees and should be prohibited.

This Decision of the SLSSI has been appealed by us to the Appeals Commission of the State Labour and Social Services Inspectorate and further, in case this Decision is left in force, it will become the subject of a trial in the competent Court.

On 14.05.2021 was published in the Official Gazette Law no. 44/2021 “On some additions and amendments in the law no. 8116, dated 29.3.1996, "The Code of Civil Procedure of the Republic of Albania", amended" which enters into force on 29.05.2021. This law mainly intervenes in the provisions on the conflict over competence and jurisdiction, the dismissals of judges, the review of lawsuits with small amounts, the trial before the Court of Appeals and the High Court and the unification of court practices by the High Court.

Two essential remedial amendments directly affect the value of lawsuits, the efficiency and speed of civil trials:

increasing the value of lawsuits arising from a contractual relationship, and which are considered as a trial of lawsuits with small amounts that are judged by a Judge both in the first instance and in the Court of Appeals. This value is twentyfold the national minimum wage; and
adjudication of special appeals against the decision to rejection of the request for issuance of the executive order, special appeals against the decision of the court that has reviewed the opposition of the bailiff actions, as well as other cases provided in the Code.

With these amendments in the CCP, is being tried to unlock many cases that are pending in the Courts of Appeal and that are not being addressed in time as a result of the dismissal of many judges of these courts.

Law no. 87/2019 "On the invoice and the turnover monitoring system" has entered into force on 01 January 2021. The first phase of implementation was carried out with companies that had transactions with the government (B2G) while starting from 01 July 2021 the second group that is subject to the obligation to implement this law, is the group of businesses that perform transactions with other businesses without money in cash.

The fiscalization system enables communication with the central invoice platform managed by AKSHI and the tax administration, where at the moment of issuing an invoice, it automatically passes to the central invoice platform through which the purchaser can check, correct and accept the invoice data.

To start issuing electronic invoices, the taxpayer must have provided the necessary infrastructure before the entry into force of the Law. In this case, the taxpayer must:

be provided with an electronic certificate which is generated by AKSHI;
purchase software that enables connection to the central platform from certified providers.

By completing these steps, the taxpayer must make certain software configurations regarding operator data or addresses, as required by law.

For non-implementation of the provisions of this law or any action, omission or violation, which is contrary to the provisions of this law, sanctions and penalties are applied according to the provisions of the law "On tax procedures in the Republic of Albania".

Yesterday in the Official Gazette has published the Normative Act for the extension of the deadline on the registration of the beneficiary owner approved by the Council of Ministers. The deadline for fulfilment of this obligation by reporting companies was set for June 30, 2021. This amendment allows all organizations to meet the obligations and become part of this process within the set deadline. The Normative Act provides for another change such as the extension of the deadline in case of changes in the data of the beneficial owners of reporting companies. The registration of changes will be done within 90 days from the date of occurrence of the current change and not 30 days as provided by Law no. 112/2020. All companies or non-profit organizations have the obligation to register the beneficiary owner. In cases of non-application of the obligation within the legal deadlines, a fine in the amount of 500,000 Lekë is applied.

With the publication in the Official Journal no. 233, dated 30.12.2020, has been published the Decision of the Council of Ministers no. 1088 dated 24.12.2020 "On determining the manner and procedures of registration and publication of data on beneficiary owners, as well as notification by the competent state authorities and obligated entities".

According to this Decision, the application for initial registration and/or for updating or changing the data for beneficiary owners will be made by the person authorized to represent the reporting entity through the electronic counter of the NBC, after being electronically identified through authentication by the unique service portal government e-Albania. After selecting the type of registration, the computerized system displays the relevant application form, according to the approved format and opens the electronic file, which holds the corresponding number (a number for each file or application) provided by the computerized system.

Through the completion of all data according to the fields of the approved forms, the authorized person declares in accordance with the law for the Register of Beneficiary Owners, to perform the required registration and submits the relevant accompanying documentation. Existing reporting entities must register the data required by this law for their beneficial owners no later than 60 calendar days from the creation of the register of Beneficiary Owners.

Meanwhile, in order to fulfill the legal obligation to identify, report and register the beneficial owner, are provided punitive measures in case of non-fulfillment of this obligation, within the deadline provided by law. Failure to register data on the owner or shareholder of a company or non-profit organization will be punished with a fine in the amount of 500 000 (five hundred thousand) Lekë. Whereas, non-registration of any change in the registered data and accompanying documents is punishable by a fine in the amount of 250 000 (two hundred and fifty thousand) Lekë. Also the legal representative, in case of non-registration is punished with a fine of 150 000 (one hundred and fifty thousand) Lekë.

This decision comes in the framework of the implementation of the obligation for approximation of the Albanian legislation with that of the EU (EU Directive 2015/849 of the Parliament and of the Council) and in order to increase transparency and take measures against money laundering and terrorist financing.

A reminder for all legal subjects: based on Law no. 87/2019 "On the Invoice and Circulation Monitoring System", the legal subjects that perform transactions with public entities will start the fiscalization process on 01 January 2021, and during 2021 will also be part of this process the legal subjects that perform transactions with clients individuals or other entities (so not only with public entities). Excluded from this scheme are agricultural producers, urban transport and street vendors.

The fiscal system will be made through the SelfCare portal published by the tax administration. Invoices must be electronically signed by the taxpayer through the electronic certificate code issued by AKSHI. The exchange of invoices between the seller and the buyer will be made on-line through this platform where the buyer has several options for accepting or not the invoice issued on his behalf, or can inform the seller about the full / partial payment of the invoice.

If there are interruptions, defects, etc., the taxpayer must use the block of VAT invoices and within 48 hours must do their fiscalize in the system. This portal will be used for invoices, books of purchases / sales and VAT declaration. There are several companies authorized by AKSHI that offer the program of declarations in the fiscal system.

Any action or omission committed by the taxpayer, which violates the provisions of this law, constitutes an administrative contravention and is punished as such in accordance with the provisions of applicable legislation on tax procedures.

On 12.11.2020, Ordinance no. 44, dated 09.11.2020 “On the amendments to Ordinance no. 24, dated 02.09.2008, “For tax procedures in the Republic of Albania” was published in the Official Gazette no. 197. A new concept is introduced, passing the responsibility for the payment of the tax debt, in the event of non-payment by the tax subject, to the partners, shareholders and Directors of the debtor Company.

The order completely changes point 90.1 regarding the date of voluntary non-payment of tax obligations, the body/holder responsible for collecting unpaid obligations, the sending of the blocking order in electronic format between the tax administration and the bank, the elements that the order must contain in order for the bank to proceed with the issuing of the measure to block the accounts/deposits and the procedure to be followed.

In the meantime, when the blocking order contains the determined elements, the Bank, within the working day following receipt of the order, blocks the taxpayer's accounts/deposits. Furthermore, within this deadline, the bank sends a written or electronic communication to the debtor for the fact of having received the blocking order.

The other novelty consists in the implementation of article 99 of law no. 9920/2008, in case of enforcement against the subject of all restrictive measures for the forced collection of the obligation and the legal person does not pay it in full, the tax administration transfers the remaining tax obligation to the partner, shareholder and director.

The blocking order will be valid for a period of 12 months from the date of issuance of the measure blocking the bank accounts/deposits. After this period, the accounts/deposits are automatically unblocked by the bank without additional notification.

The electronic service helps foreign nationals to apply to obtain a Certificate of employment declaration for EU citizens, Schengen Area, USA and Republic of Kosovo.

Instruction of the Minister of Finance and Economy no. 31, dated 13.8.2020 “On the declaration for employment of citizens of European Union countries and the Schengen area, family members of citizens of European Union countries and the Schengen area, who are not citizens of these countries, citizens of the United States of America, citizens of Kosovo, "Bosnia and Herzegovina, Montenegro, Serbia and Northern Macedonia, as well as citizens employed in various sectors in order to remedy the consequences and recover from natural disasters” provides that the declaration of employment of citizens of these countries as well as citizens employed in various sectors in order to remedy the consequences and recovery from natural disasters, is made by the employer or the self-employed foreigner or investor, in the employment office in the country where activity, being provided with a document certifying their declaration of employment.

The employer or the self-employed foreigner or investor can apply online in the e-Albania portal by filling in the form "Application for Certificate of employment declaration" attached to the following documents:

Copy of passport or ID;
Family certificate;
Lease contract (copy) or self-declaration for the residential address in the territory of the Republic of Albania of the foreign citizen;
Employment contract with the employer, statute and founding act (for companies) or registration certificate in the National Business Center (QKB) (for natural persons) for self-employed foreigners;

The request and documentation is addressed to the relevant employment office, in the territory of which the entity carries out economic activity, and to the National Agency for Employment and Skills at the central level, if the entity where the foreign citizen will work, carries out economic activity in most more than one geographical region. Equipping the foreigner with a certificate of employment is done within a period of 5 working days from the day of application.

Yesterday, the Decision no. 608, dated 29.07.2020 of the Council of Ministers "On the procedures, criteria and rules for the implementation of the employment promotion program through the employment of unemployed persons as a result of Covid-19", was amended by Decision no. 699 dated 10.09.2020 “For a change in the Decision no. 608, dated 29.07.2020, of the Council of Ministers, "On the procedures, criteria and rules for the implementation of the employment promotion program through the employment of unemployed persons, as a result of Covid-19" through which, it is intended to support the unemployed jobseekers, who have become such as a result of the closure of business activity, in implementation of laws and bylaws, to prevent the spread of pandemic in conditions of natural disaster.

Through salary financing and mandatory social contributions, this program promotes job creation and supports traders and trading companies in the recovery process. The employment program provides employment in periods of 4, 8 or 12 months, depending on the profile and needs of the jobseeker according to the vacancy.

For the four-month employment program, the program subsidizes salary financing in the amount of 100% of the national minimum wage for 2 (two) months for all program participants, compensated in the first and fourth month of the contract as well as mandatory social and health contributions (part of the employer's contribution), calculated on the basis of the national minimum wage. For the eight-month employment program, salary financing is subsidized in the amount of 100% of the national minimum wage, for 4 (four) months for all program participants, compensated in the first, second, seventh and eighth month of the contract. as well as mandatory social and health contributions. As for the 12-month employment program, the program subsidizes the costs of financing compulsory insurance (contribution of the employer and the employee) at the rate of 100%, calculated on the basis of the national minimum wage.

Beneficiary jobseekers are all unemployed jobseekers who have become unemployed as a result of COVID-19 from March 10, 2020 to June 23, 2020, registered by the General Directorate of Taxation and registered in the employment office, as well as those who declare that they have been employed, but are not registered in the General Directorate of Taxes and are registered in the employment office. The program is implemented in accordance with the individual needs of the unemployed jobseeker to integrate into the labour market and the individual plan for his employment.

The Decision of the Tirana District Court no. 2846, dated 21.07.2020

In one of the last court cases pursued (in defense of the Claimant) by “Legale Albania”, represented at trial by Atty. Lulzim Alushaj and assisted by Ass. Atty. Xhesilda Balashi, the Commercial Section of the Tirana District Court decided to accept the claims of the Claimant (Television with National Broadcasting License) and the main intervener (another Television with National Broadcasting License) against an Albanian company which is active in unregulated market of television audience measurements.

In principle, on the unregulated market of television Audience measurements, was accepted the rule of prohibition of measurements and publication of measurement data by persons or entities not authorized by the entity against which the measurements are made, and as a result of these actions the Court decided to compensate the damages to the Claimant. Along with the final decision in the first instance, the Trial Panel also legislated the measure for securing the lawsuit which was given during the trial, by prohibiting the measurements and their publication until the end of the final trial.

It is the first time that such an interesting and at the same time complex case is tried by an Albanian Court and which certainly constitutes one of the “case study” for the adjudication of commercial cases and the impact that it will bring to the improvement of the audiovisual media market in Albania.

Pursuant to the obligation for approximation of the Albanian legislation with that of the EU (Directive (EU) 2015/849 of the Parliament and of the Council), has been published in the Official Journal no. 112/2020 “On the register of Beneficial Owners” which reinforces the increase of transparency and taking measures against money laundering and terrorist financing.

This law applies to all legal entities registered in the Republic of Albania as follows (Ltd, Jsc, NPO, foreign representative offices, collective entities and any other legal entity, which by law is obliged to register to the NBC). Only natural persons, traders registered in the commercial register, as well as state-owned enterprises, political parties and religious communities are not obliged to register and are excluded from the scope of application of this Law. The public Authority authorized by law which will manage the register will be the National Business Center (NBC).

Meanwhile, in order to fulfill the legal obligation to identify, report and register the beneficial owner, are provided punitive measures in case of non-fulfillment of this obligation, within the deadline provided by law (the deadline is 30 days from the date of initial registration or from the date of factual change). The failure to register data on the owner or shareholder of a company or non-profit organization will be punished with a fine in the amount of 500 000 (five hundred thousand) Lekë. Whereas, non-registration of any change in the registered data and accompanying documents is punishable by a fine in the amount of 250 000 (two hundred and fifty thousand) Lekë. Also the legal representative, in case of non-registration is punished with a fine of 150 000 (one hundred and fifty thousand) Lekë. Existing reporting entities must register the data required by this law for their beneficial owners no later than 60 calendar days from the creation of the register.

In the framework of facilitating the economic activity of private entities, the Tax Administration will cancel the fines imposed due to non-payment on time of the preliminary installments of Profit Tax for the first quarter of 2020 of entities and businesses, reflected in the period of natural disaster declared by DCM no. 243, dated 24.3.2020, "On the declaration of the state of natural disaster", as amended.

All entities that have received a penalty for non-payment of Profit Tax installments on time and have paid it will be able to use this amount for subsequent tax liabilities. The Tax Administration will continue to implement the procedures to notify taxpayers in their e-Filing electronic declaration account. This decision of the Tax Administration comes as help and support to these entities due to the pandemic.

Referring to the issues received by the Studio according to the benefit of foreign minors from the health insurance of the parent who carry out a trade activity or works insured in Albania, we have requested an accurate interpretation of the legislation in force and, for this reason, we have addressed the Department for Border and Migration to the State Police, which has returned the answer as follows.

In order to benefit from the health services of the state health insurance scheme of the foreign parent, who works in the Republic of Albania, the minor children accompanying the foreigner must be provided in advance with a residence permit in Albania. For foreign minor children with residence permits and relatives of the foreigner employed and insured according to the compulsory health insurance scheme in Albania, no special health insurance is required because he benefits from the parent health insurance scheme.

All foreigners who are involved in these cases, have no reason to pay insurance policies in the private insurance system for health services that benefit from the state health insurance scheme.

There is established the electronic register of experts which will be an aid in the court proceedings that take place at the Albanian courts: On the proposal of the Minister of Justice, the Council of Ministers, by decision no. 502 dated 24.06.2020, published in the Official Journal no. 121/2020, decided to set up the state database "Electronic Register of Experts" which aims at storing, administering and processing data in electronic form for experts who meet the conditions to register in it, according to the definition of Article 224/d of the Code of Civil Procedure of the Republic of Albania, as amended, grouping them according to their area of ​​expertise and the place where they work.

Experts are registered in the "Electronic Register of Experts", for whom the special laws which regulate the organization and function of the profession or a certain field provide for their licensing. This register, as a basis for state data is made in Web-based format and hosted on the government datacenter located in the National Agency for Information Society (AKSHI).

The Ministry of Infrastructure and Energy both with the Civil Aviation Authority and the General Maritime Directorate, after the difficulties resulting from the unprecedented situation of COVID-19, are taking the necessary steps to gradually and safely resume air and sea transport activity.

The priority of the activity in the concrete context is the reopening of air and sea transport in accordance with the preventive and protective rules of health safety, drafted according to the recommendations and instructions of international civil aviation and public health organizations.

The Ministry of Infrastructure and Energy announces that starting from June 22, 2020, will begin the actions for the operation of regular international flights to destinations according to the schedules that will be approved and communicated by the Civil Aviation Authority, guaranteeing above all, the safety of the health of the employees of this sector and the passengers.

Also, the Ministry of Infrastructure and Energy both with the General Maritime Directorate announce that this date marks the opening of all passenger sea shipping lines, but only for Italian citizens, other foreigners and Albanians who are residents and work in Italy, while for tourists and ordinary passengers the movement will take place from 1 July.

Due to COVID – 19 the situation of many people, in particular Italian and Albanian citizens, who need to undertake their activities by moving between the two countries Italy and Albania is still uncertain.

There are many questions in this sense received in the Studio and, therefore, for all interested parties who contact us and/or want more precise information we briefly summarize the provisions currently in force in both states.

In Albania, the Regulatory Act no. 243 of 03.24.2020 issued by the Council of Ministers and ratified by the Albanian Parliament is still in force, which sets the deadline for the duration of the state of emergency as 06.23.2020.

In Italy, a Prime Ministerial Decree was issued on 11.06.2020 which in paragraphs 2 and 3 of art. 6 of the Prime Ministerial Decree specifies that travel to and from countries other than those referred to in paragraph 1) – a) Member States of the European Union; b) States party to the Schengen Agreement; c) United Kingdom of Great Britain and Northern Ireland; d) Andorra, Principality of Monaco; e) Republic of San Marino and Vatican City State – remain prohibited until 30 June 2020, except for proven work needs, absolute urgency or health reasons.

The same Prime Ministerial Decree also provides that in any case it remains permitted to return to Italy to one's domicile, home or residence, but always by completing and depositing the self-certification form with the authorities in charge of controlling travellers on public transport.

The Order of the Minister of Infrastructure and Energy No. 169, dated 05.06.2020 “On the application of operational protocols in air transport, road transport and maritime transport, in the context of prevention and control of the COVID-19 pandemic”, which aims to reduce the risk of SARS-CoV-2 transmission as much as possible, has come into force.

Previous knowledge of these protocols and their precise application by all passengers will not only increase safety, preventing the spread of the COVID-19 infection, but will also significantly facilitate all procedures to be followed. Specifically:

Management of operations in air transport

In addition to compliance with hygiene and distancing rules, in accordance with the rules in force for the protection of personal data, passengers must fill out a declaration on their COVID-19 status before being allowed to board the aircraft (boarding pass), during check-in (Annex 1 of this protocol).

Management of road transport operations

In the transport of travellers, travel with reduced capacity will be permitted, respecting distance and hygiene rules. Licensed transport operators must ensure compliance with hygiene measures, social distancing and the rules for boarding/disembarking travellers.

Management of port operations

To prevent the spread of Covid-19, checks will be carried out on passengers and crews, and detailed measures will be taken for ventilation, disinfection, emergency treatment and risk prevention of imported cases.

The Supreme Judicial Council has decided to restart the activity of the entire judicial system and judicial services, in all Courts of the Republic of Albania, on April 27, 2020. On this date, all administrative, criminal and civil judicial processes will be reopened for review, but with limitations regarding participation.

For this reason, work is underway to take organizational and administrative measures so that the safety of the public, judges and court employees is guaranteed and that the resumption of exercise in each court is done in accordance with all measures taken to limit the spread of COVID-19.

Before this decision, the courts were forced to examine only emerging cases assessed as such by the judge on a case-by-case basis and mainly the hearings for the assessment of safety measures.

The Supreme Judicial Council has decided to restart the activity of the entire judicial system and judicial services, in all Courts of the Republic of Albania, on April 27, 2020. On this date, all administrative, criminal and civil judicial processes will be reopened for review, but with limitations regarding participation.

For this reason, work is underway to take organizational and administrative measures so that the safety of the public, judges and court employees is guaranteed and that the resumption of exercise in each court is done in accordance with all measures taken to limit the spread of COVID-19.

Before this decision, the courts were forced to examine only emerging cases assessed as such by the judge on a case-by-case basis and mainly the hearings for the assessment of safety measures.

It is published in the Official Journal no. 60/2020. DCM no. 277, dated 06.04.2020 “On the approval of the state loan guarantee with the second-level banks for the salaries of traders or trade companies, whose activity has been affected by the decisions of the Council of Ministers, in the framework of managing the situation created by COVID-19, as well as for the determination of the terms and conditions of the agreement of understanding”. Below you will find briefly summarized the defined criteria and procedures. ·

Who applies? Traders or trade companies whose activities have been closed or affected by a decrease in turnover as a result of decisions of the Council of Ministers and orders issued by the Ministry of Health and Social Protection in the context of managing the situation created by COVID19. There are not included traders or trade companies that prior to the approval of this DCM, they are subject to benefit from the payment subsidy scheme according to decision no. 254, dated 27.3.2020, of the Council of Ministers, “On the determination of procedures, documentation and the measure of receiving financial assistance for employees in business entities with annual income up to 14 million ALL, economic assistance and payment of income from unemployment during the period of natural disaster, declared as consequence of COVID-19 ”. ·
Borrower Eligibility Requirements
1. The borrower must be part of the category of entities affected by government decisions in the context of managing the situation created by COVID-19;

2. The borrower must have the ability to repay the loan in line with the criteria operated by the banking sector in the Republic of Albania;

3. The purpose of using the Loan Fund will only be to pay the salaries of the Borrower’s Employees based on the payroll processed by the Lender in February 2020.

Loan criteria
1. The loan value made available in any case does not exceed the value of 3 gross monthly salaries of the declared employees;

2. The average life of loan will be at the discretion of the Lender, but not exceeding in any case the average life of 2 years;

3. The loan will have a free principal period of 3 months;

4. Currency of the Loan will be in local currency (lekë);

5. The lender will not apply administrative costs to the Loan. ·

Deadlines The borrower must submit the loan application to the Lender no later than 30 days from the date of signing this agreement.

The new procedure for issuing a certificate for exercising the permitted commercial activity has entered into force for all entities that exercise a permitted activity (to learn more click here). According to the provisions of Order no. 257 dated 10.04.2020 of the Ministry of Health and Social Protection, the entities will apply online through the e-Albania portal for the service “Certificate for open economic activity” without the need to submit any documentation or the continuation of further procedures. This type of service allows the possession of the certificate proving that the entity is authorized to exercise the activity during the period of emergency due to COVID-19.

To obtain the certificate, firstly the Entity must ensure that it is registered as a business and then can access to e-albania website, where will be identified in the business account through NUIS and will select the service of “Certificate for open economic activity”.

This access to the governmental portal e-Albania supports only the Albanian entities. Whereas, foreign entities that are administrators of a company in Albania must apply for the service “Certificate for open economic activity” via SMS to the phone number 55155, in text format: VS NIPT NID.

In addition to the procedure of reopening the activities, the Ministry has ordered the Entities to implement a sanitation safety protocol, which requires: physical distance rules between employees and/or customers, hand sanitizers, cleaning paper, gloves and face masks, etc.

Published in the Monitor Journal of Economics no. 925 dated 06 April 2020 on page 43 at this link: https://www.monitor.al/revista/925/index.html

http://www.legalealbania.com/al/en/2020/04/07/written-contribution-by-the-managing-partner-atty-lulzim-alushaj-in-the-monitor-journal-of-economics/

In the previous news we have informed that in the Official Journal of the Republic of Albania no. 50 of 25.03.2020 was published the Normative Act no. 9, of 25.03.2020, under the title “on special measures in the field of judicial activity during the period caused by the COVID-19 epidemic”. In this act it is expected that:

All civil, criminal and administrative court hearings are suspended for the entire duration of the epidemic;

Since the entry into force of this Normative Act, the procedural rules for filing lawsuits, filing appeals and any procedural act related to civil, criminal and administrative issues are suspended. When the deadlines begin during the epidemic period, they postponed until the end of the epidemic period. This act does not refer to the general rules of prescription, but simply to the suspension of procedural rules and documents related to the process.

Do the general rules of prescription provided for in the Albanian Civil Code take effect in this situation?

In the Albanian Civil Code, the definition of force majeure is not precisely defined in a single article but is mentioned from time to time in the rules, in particular and of interest at this time is the Art. 129 of the C.C (the causes of the suspension of the prescription rules). In this Article we find the presence of “force majeure” as a cause of suspension of the general prescription rules. Can the fact of the COVID -19 epidemics be considered a “force majeure”, therefore the cause of suspension of the general prescription rules?

The practices of the international trade relations help us, (the Convention on the International Sale of Goods or the Vienna Convention of 1980) where we find these three characteristics in order to invoke the force majeure clause:

· The extraneousness event from the sphere of control of the obliged party;
· The unpredictability of the event at the time of signing the contract;
· The insurmountable event of the impeding fact or its results.

Based on this interpretation, it seems that even the general rules of prescription mentioned in Art. 129 of the Civil Code of the Republic of Albania, are suspended due to force majeure, to underline that there is no automation but the suspension of force majeure that must be notified to the person concerned.

All the owners of manufacturing companies or those who provide services to citizens and want to accredit vehicles to transport people or goods within the District, should not send an e-mail to: [email protected] or call the two dedicated numbers but should address to the District of the Police Service in the area where they reside or have their business activity.

Whereas those owners or administrators who have their business activity out of District, as well as those who are resident in the District of Tirana, can continue to apply for accreditation via e-mail [email protected] and call the two dedicated numbers.

The circulation hour from 06:00 to 08:00 and 16:00 to 17:00 is not for the free movement of citizens, but it is for the staff/employees of manufacturing companies which are allowed to carry out their business according to the confirmation of the State Police, as well as for employees of the State Institutions with an identification document issued from it.

Free movement of citizens by their private vehicles will not be allowed during these hours.

Manufacturers and suppliers’ vehicles, vans, lorries and wagons are allowed to move at any time, but they have to certify the movement with the goods distribution invoices or supply invoices.

In the Official Journal no. 50 of 25.03.2020 has published the Normative Act no. 9 dated on 25.03.2020, under the title “On special measures in the field of judicial activity during the period caused by the COVID-19 epidemic”.

This act, which announces 15-day delay than the decision of suspension of the judicial activity throughout the national territory issued by the High Judicial Council on 11.03.2020, provides that:

All civil, criminal and administrative court hearings are suspended for the entire duration of the epidemic;
With the entry into force of this Normative Act, the procedural terms for filing lawsuits, filing appeals and any procedural act related to civil, criminal and administrative issues are suspended;
When the deadlines begin during the epidemic period, they postponed until the end of the epidemic period.
The above rules have been mantained and do not apply, to the Court’s assessment, only to administrative issues dealing with emergency measures, family and juvenile issues, criminal issues (arrest, protective measures, pre-trial detention).

On the other side, The High Judicial Council has extended the period of suspension of judicial activity until 07.04.2020 (inclusive).

In the Official Journal no. 50 of 25.03.2020 has published the Normative Act no. 9 dated on 25.03.2020, under the title “On special measures in the field of judicial activity during the period caused by the COVID-19 epidemic”.

This act, which announces 15-day delay than the decision of suspension of the judicial activity throughout the national territory issued by the High Judicial Council on 11.03.2020, provides that:

All civil, criminal and administrative court hearings are suspended for the entire duration of the epidemic;
With the entry into force of this Normative Act, the procedural terms for filing lawsuits, filing appeals and any procedural act related to civil, criminal and administrative issues are suspended;
When the deadlines begin during the epidemic period, they postponed until the end of the epidemic period.
The above rules have been mantained and do not apply, to the Court’s assessment, only to administrative issues dealing with emergency measures, family and juvenile issues, criminal issues (arrest, protective measures, pre-trial detention).

On the other side, The High Judicial Council has extended the period of suspension of judicial activity until 07.04.2020 (inclusive).

Following our latest news ” ATTENTION: THE LIST OF THE COMMERCIAL ACTIVITIES WHICH ARE ALLOWED TO WORK DURING THE PERIOD OF THE COVID EPIDEMIC – 19″, the recent interpretative indications of the Ministry of Interior in Albania are as follows:

Employees, who make the journey on foot, are allowed to move on between 05:00 – 08:00 and 12:00 – 13:00. They must have the documentation issued by the company where they are employed.
Employees, who use the company vehicles where they are employed, are allowed to move on between 05:00 – 08:00 and 12:00 – 13:00 according to the self-declaration on the website of COVID – 19 which is available at: [email protected]
The above rules do not apply to some commercial activities as: employees of manufacturing company, bakeries, companies that produce, supplies and sale food products, construction companies and farmers who can work out of limited hours. Also, in this list are included the companies that provide internet and mobile services, delivery services in-house by municipalities or catering markets.

The hours of movement of employees for the permitted activities are limited from 05: 00-13: 00 except for the commercial activities mentioned above.

By Decision no. 127 date 10.03.2020 the High Judicial Council of the Republic of Albania has decided to suspend judicial services throughout the territory of the Republic of Albania.

Excluded from the effects of this interruption are urgent judicial activities and services, which are considered such by the Judge on a case-by-case basis (generally judgments on safeguards, terms of detention, etc.).

In any case, the presence of the public in the courtrooms is prohibited. Communications in this period of interruption can be made by alternative means such as mail, e-mail, online on the Web sites of the Courts.

The duration set for this period is two weeks, so expires on 24.03.2020 (included).

An important amendment entered into force with Law no. 83/2019, published in the Official Gazette of the Republic of Albania no. 184, dated 31.12.2019, since the principle of mutual compensation of tax / customs duties has been explicitly included in the Albanian tax system for the first time.

Specifically, after the paragraph no. 3 of Art. 75 of the Law no. 9920, dated 19.05.2008 “On Tax Procedures”, is added paragraph no. 4 which specifies that in special cases for amounts of taxes and duties to be paid or paid to the Tax Administration Office or Customs Administration Office, both can be compensated between each other.

Minister of Finance issues an Order for special cases, for the procedures and criteria for the execution of this paragraph.

“Legale Albania” has legally assisted a large number of employees (nr. 107) in defining the partial transfer project of the company from ICTS Albania Sh.p.k. (Company of the French group ICTS Europe) to Tirana International Airport Sh.p.k. (Company controlled by China Everbright Limited) (TIA).

The transfer project, approved in the first instance on 07 November 2019, represents one of the final stages of the operation concerning the continuity of the security service at the “Nene Tereza” International Airport, Tirane (the only International Airport in Albania).

The final transfer project will be submitted to the competent bodies of the respective Companies and will become executive immediately following its issuance.

“Legale Albania” during the consultancy period, with a team led and coordinated by Managing Partner Avv. Dr. Lulzim Alushaj supported by associate Rimonda Dhjari and junior associate Xhesilda Balashi, took care of and concluded all legal and contractual aspects and compliance with procedures for the protection of employees' rights already acquired and which were continuously transferred to TIA.

In 2013, the Republic of Albania ratified “The Convention on Mutual Administrative Assistance in Tax Matters”. The Convention is considered the most appropriate multilateral instrument for all forms of tax cooperation to combat tax evasion and avoidance in the OECD context. The Agreement was jointly developed by the OECD (Organisation for Economic Co-operation and Development) and the Council of Europe in 1988, and amended by the Protocol in 2010. The Convention has been ratified by a wide range of countries around the world, both members of the Council of Europe and non-members of the Council of Europe.

In this regard, the Albanian Government, in addition to the ratification of the Convention and the issuance of the DCM nr. 178, of 9.3.2016 “for the approval of the Multilateral Agreement, of the Competent Authority, for the automatic exchange of financial account information”, has recently prepared and submitted to Parliament a bill for the implementation of this Convention, entitled “on the Automatic Exchange of Financial Account Information”.

The main objective is to provide administrative assistance to public authorities in tax matters between the parties to the convention on activities of individuals and companies belonging to signatory states. Specifically, the Authorities in charge: (a) will provide the exchange of information, including simultaneous tax inspections and participation in tax inspections abroad; (b) will provide assistance in the recovery of evaded tax, including conservation measures; (c) will provide supply services for documents considered useful.

From the moment of the entry into force of this Law, Financial Institutions shall have the obligation to cooperate, assist each other and inform about the financial activities of suspicious clients (including banks, as provided for by Articles 61/1 and 62 of Law No. 9920, dated 19.05.2008 “for Fiscal Procedures in the Republic of Albania”) in accordance with the internal regulations for the processing of fiscal and personal data.

In the last two years, several very important foreign groups in the Automotive sector have established part of their production in Albanian territory. Based on this interest, the Albanian government has proposed, with the 2020 tax package that will be the subject of parliamentary debate in December 2019, to reduce the income tax of Automotive sector companies that produce in Albania from 15% to 5%.

With this measure, a strong signal is given to the interest in the development of this sector in Albania and, at the same time, it competes with neighboring countries (Serbia and North Macedonia) that have a longer tradition in the Automotive sector.

With Ministerial Decree no. 626, dated 18.9.2019, published in the Official Journal no. 137 of 07.10.2019, Title VII, Chapter III, Section 3 and 4 of Ministerial Decree no. 651 of 10.11.2017 was amended, with regard to customs free zones (Articles 201 – 222 of the Customs Code).

In particular, the activities permitted in the customs free zone, after receiving the approval of the Director General of Customs, are:

storage of non-Albanian goods until a regime is established;
storage of Albanian goods, which may enter, move, be used, processed or consumed in an area. In these cases, the goods are not considered to be under the zone regime;
processing under special customs regimes;
any transaction relating to the trade of non-Albanian goods;
duty-free supplies, on-board supplies;
blending operations for specific products as requested by customers and markets;
commercial logistics, selection and customization operations as requested by markets;
packaging, wrapping, labeling and affixing identification marks, fiscal or commercial stamps;
any processing, in accordance with Annex 71–03 of Addendum A, which is annexed to this Decision and forms an integral part thereof;
storage of goods as contractual securities for commercial operations;
transhipment of goods;
supplies/transfers from ship/vehicle to ship/vehicle, from warehouse to warehouse, from warehouse to ship/vehicle and from ship/vehicle to warehouse.

The Albanian Government as regards foreign investments in the Automotive sector takes as an example the Italian company Giobert S.p.A. which, from the beginning for the relocation phases and still now, is assisted by "Legale Albania".

Automotive is considered one of the great interest and growing sectors and contributes to the increase in foreign investments in Albania and to the creation of new jobs.

In DCM No. 577, dated 31.07.2019 “On Some Additions to the Decision of the Council of Ministers No. 651, dated 10.11.2017 “On the implementing provisions of the Law No. 102/2014, “Customs Code of the Republic of Albania”, published in the Official Journal No. 114, dated 02/08/2019, the additions are made regarding to:

Determining the conditions for the establishment of a customs free zone;
General conditions of operation of the customs free zone;
Procedure of applying for activities in the customs free zone;
Procedures prior to granting authorization to operate in this zone;
Approval of the Authorization to operate in the customs free zone;
Responsibilities of the holder of authorization to operate in the customs free zone;
Suspension of Authorization for activity, suspension of authorization upon request, removal of such suspension, revocation of authorization and cases of revocation of authorization for activity in this zone;
The methodology and rules for reconciliation and controls in this zone;

According to the Law no. 55/2019 “on some changes and additions to the law n. 9975, of 28.07.2008 “For the National Taxes” as amended”, published in the Official Journal no. 113 of 01.08.2019, there have been changes regarding the taxation of:

– plastic / glass packaging and plastic / glass materials;

– raw materials in primary forms or other imported articles;

– raw materials in primary forms for the production of polystyrene;

– raw materials in primary forms for the production of sponges;

– raw materials in primary forms with high protein content or cellulosic materials;

According to the Law no. 31/2019 “On Tax Procedures in the Republic of Albania”, which it has published in the Official Journal no. 99 of 10.07.2019, the natural persons registered for VAT purposes and legal persons (all tax categories) and non-governmental organizations registered at the tax authority are obliged to have and declare a bank account to this authority. The registration and declaration of the bank account should be made within 90 days from the entry into force of the Law no. 31/2019.

All taxpayers who register after the entry into force of this law are obliged to open and register the bank account in the tax authority within 20 days from the day after registration in the commercial register (NBC).

Failure to comply with the above will result in a fine ranging from LEK 25,000 to LEK 50,000 and if the violation continues it could even be doubled.

In the Official Journal nr. 99 of 10.07.2019 of the Republic of Albania has been published the Law no. 30/2019 ‘’On Some Additions and Amendments in Law No. 9723, Dated 3.5.2007, “On Business Registration”, as amended.

In Article 22, after point 4 is added point 4/1 with the following content:

“4/1. Application to change the member and / or the structure of membership of legal entity is made within 30 calendar days from the date of the fact of the factual change of the member and / or the structure of the membership, except in cases provided for by law. Failure to comply with this new provision brings a monetary sanction of LEK 50,000. ”

With the Ordinance of the Minister of Tourism and Environment of the Republic of Albania n. 243 of 07.09.2019 "for the approval of the Regulation on the classification procedures of accommodation facilities with 4 or 5 stars which are holders of a registered and internationally recognized commercial brand "brand name"" the respective Regulation for the classification procedures of these structures with 4 or 5 stars which are holders of a registered and internationally recognized commercial brand "brand name".

The validity of the certificate issued is 4 (four) years and can be renewed.

With this act, the first in the history of tourism in Albania, the way opens for the formalization of the certification and registration of 4 or 5 star accommodation facilities that have an agreement with an international "brand name".

The Republic of Albania has facilitated the establishment of business activities by companies and foreign nationals in its territory since the signing of the Stabilization and Association Agreement with the European Union member states in 2006.

The facilities are realized:

Guaranteeing the EU Communities companies, a treatment no less favorable than that accorded to Albanian companies or companies of a third country.
Guaranteeing the activities of subsidiaries or branches of EU companies after their transfer to Albania, a treatment no less favorable than that accorded to subsidiaries and Albanian companies or to a branch or subsidiary of a company of a third country.
The Albanian legislation guarantees a high level of the protection of foreign investments.

Obtaining the status of Authorised Economic Operator (AEO) gives the right to various customs procedures

The Authorised Economic Operator (AEO) is a status that is recognized to operators with high reliability who can take advantage of many facilitations in customs procedures.

The Customs Code of the Republic of Albania provides two status for AEO, which are:

‘’AEO to obtain various customs facilities:

“AEO for security and defense, authorized subject for facilitations in customs procedures.

The Albanian customs recognize the status of AEO and according to the agreement for mutual recognition with CEFTA countries, this status is also extended to the customs of CEFTA countries.