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What is the lek limit for a small business so that it does not become a large business?

What is the lek limit for a small business so that it does not become a large


Dear reader. Your question suggests the tendency of a business that seeks to "modify" its turnover in order to be categorized in a lower tax liability class. For legal correctness we have to tell you that this is a violation of the legal and regulatory framework and we do not advise it in any way.

Also, anyone who tells you that they will help you in this regard is not doing a fair thing and may leave you exposed to legal enforcement by law enforcement bodies (tax directorate and other institutions).

Regarding the informative nature of your question, we inform you that based on Article 10 of Law No. 9632, dated 30.10.2006 "On the local tax system" as amended, any entity that conducts a business, through which is realized during the fiscal year turnover (turnover) smaller than or equal to 8,000,000 new lek (or 80,000,000 old lek), is subject to the simplified tax on small business profit.

In other words, if it exceeds the limit of 8,000,000 lek, your business is automatically categorized from "Small Business" to "Large Business". Categorizing your business as a Big Business makes your entity subject to profit tax according to Article 16 et seq. of Law No. 8438, Date 28.12.1998 "On income tax" as amended.

If you are a Small Business, the tax percentage (rate) applied to your entity's profit is zero (0%), while if you are a Large Business it is 15%.

Florjan Gjoka answered. Read the biography

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