The Tax System in Albania and Its Impact on the Investor. Comparative Analysis with Countries in the Region
The Tax System in Albania and Its Impact on the Investor. Comparative Analysis with Countries in the Region

Author(s): Marsida Herremi
Subject(s): Social Sciences
Published by: Udruženje ekonomista i menadžera Balkana
Keywords: Fiscal system; Profit tax; Personal income tax; Value-added tax
Summary/Abstract: This study aims to empirically analyze the impact of different tax rates on the dynamics of investments at the macroeconomic level in Albania. In this study, a comparative analysis will be carried out with some of the countries in the region. Countries such as Albania, Kosovo*, the Republic of North Macedonia, Montenegro, Bosnia-Herzegovina, and Serbia, which are part of the Balkans, have similarities regarding the tax systems and rates they apply to corporate profits, personal income, and consumption. These countries were chosen for the comparative analysis because of the similarity in historical, economic, and social developments. However, even between these countries, there are obvious differences regarding development policies which will be highlighted during the analysis. The data were obtained from the Bank of Albania, the fiscal legislation of Albania, and the fiscal legislation of all relevant countries taken for comparison. Based on the tax system of each country, we will reach the conclusion of what impact they have on foreign direct investments.

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