How Albania’s Tax Amnesty & Peace Agreement Offer Strategic Relief for Businesses

Overview of Albania’s Recent Regime

Albania has rolled out two key tax-relief initiatives aimed at helping businesses settle lingering liabilities and restart on cleaner terms: the Peace Fiscal Agreement for the 2026 fiscal year and Law No. 86/2025, which covers the forgiveness and settlement of overdue tax debts.(tatime.gov.al)(tatime.gov.al)

What’s on Offer

• Peace Fiscal Agreement (PFA) 2026: Businesses and individuals subject to corporate tax or business income tax can apply via the e-filing system to benefit. Eligibility criteria include: gross income above 14 million lekë in the prior year, no outstanding unpaid tax that’s declared, no ongoing legal or criminal proceedings, and other integrity conditions.(tatime.gov.al)

• Law No. 86/2025: This provides the legal framework for forgiving or reducing unpaid tax obligations as of specific past periods:

  • Debts before 31 December 2014: fully erased, including fines and interest.(tatime.gov.al)
  • Debts from 2015-2019: half of principal forgiven if paid by 30 June 2026; three quarters if paid by end of the year. All fines/interest forgiven.(tatime.gov.al)
  • Debts from 2020-2024: full principal owed, but fines/interest forgiven; full payment required by 31 December 2026.(tatime.gov.al)

How To Qualify & Apply

• Applications for PFA 2026 must have been made by 5 June 2026. Any requests after that date are not accepted.(tatime.gov.al)
• For Law 86/2025 benefits, individuals must pay the required portion and submit any delayed declarations by deadlines: up to 30 June or 31 December 2026 depending on the coverage period.(tatime.gov.al)

Practical Examples

• Company with overdue taxes from 2016: if it pays the remaining 50% principal by 30 June 2026, under Law 86/2025 it will have the other 50% forgiven, as well as all related penalties and interest.
• Individual taxpayer from 2013: owes taxes from 2014 or earlier—fully forgiven; important to have declared past due returns by necessary deadlines.

Key Risks or Considerations

• You will not benefit if you’re under criminal investigation or have a finalized conviction for tax fraud.(tatime.gov.al)
• If you signed up but fail to make payments/provide documentation on time, forgiveness or benefits may be lost.
• Entities already in appeal or administrative proceedings may need to surrender those in order to benefit.

Action Plan

1. Assess your past liabilities: map debts by period (pre-2014, 2015-2019, 2020-2024) and check eligibility.
2. Collect documents: proof of gross revenues, declarations, legal standing (no criminal/tax court cases).
3. File applications / payments before deadlines: ideally by 30 June 2026 for the most favorable terms.
4. Update tax practices going forward: ensure all returns filed, use correct minimum wages/salaries for social security, adopt status-personal declarations (see below).

Example Scenario

A business had undeclared liabilities from 2018 totalling 100,000 lekë principal plus interest/fines of 20,000 lekë. If paid 50,000 lekë before 30 June 2026, the law would forgive the rest of the principal (50,000 lekë) and the full 20,000 in interest/fines, meaning you pay only half the principal, no penalties.

Bottom Line

For those who qualify, Albania’s tax amnesty and Peace Agreement are real chances to reset: reduce exposure, tidy up records, and move forward with better compliance. But timing, documentation, and integrity are essential. Don’t miss the deadlines.