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After the accountants, the law that taxes the free professions is also sent to the Constitutional Court by the lawyers

After the accountants, the law that taxes the free professions is also sent to

Without starting from the implementation yet, the new law "On income tax", which taxes free professions, is appealed for the third time in the Constitutional Court.

After the appeal to the Constitutional Court, by the deputy Jorida Tabaku and the second appeal that was filed in the Constitutional Court by the Institute of Certified Accountants (IKM) and the Institute of Authorized Accounting Experts (IEKA), with the massive participation of lawyers, jurists and many professionals free of various fields, on April 19 another lawsuit was sent for the repeal of the law.

Even in the third lawsuit with the object "Partial suspension of law no. 29/2023 and repeal of some of its articles and by-laws", the claims of independent professionals for the violation of constitutionality are based on the discrimination of the middle class and the illegality of the implementation of the law.

The organization for the mass preparation of the lawsuit of various professionals came after the tax administration sent the assessment notice to each business for the prepayment of 9 tax installments.

According to tax calculations, businesses must prepay between 600 and 1,000 euros per month in taxes for 2024, based on the income and expenses declared for 2023.

Accountants and lawyers estimated that not only the legal content of the assessments is wrong, but also the calculation for the installments of tax prepayment.

From IKM and IEKA, the complaint was filed with the Constitutional Court on March 20, 2024.

Representatives of these institutions claimed earlier for "Monitor" that the claims regarding constitutional violations are:

1. Violation of the principle of equality before the law;

2. Violation of the fundamental right to freedom of economic activity and profession;

3. Violation of the principle of the rule of law and legal security;

4. Violation of the principle of legal reserve in the tax field and the hierarchy of rates.

The new law provides for implementation in two periods. After deducting expenses, the profits of the self-employed, natural persons and traders of services of free professions, from January 1, 2024, are taxed at the rates of 15% and 23%. While other small businesses will continue to have zero tax until December 31, 2029.

Due to the unequal tax treatment given to the categories of businesses, the repeal of Article 69 is required, which defines the exemption of other businesses from taxation and of the list of services of free professions that were included in the new taxation.

"Partial repeal of Article 3, paragraph 5; Article 12, paragraph 1, letter "ç"; and article 69, paragraph 1, letter "dh", of law no. 29/2023 dated 30.03.2023, "On income tax" as amended.

Repeal of article 4, paragraph 1 "list of services subject to taxation from January 1, 2024" and Analytical table no. 2, subsection 69, of VKM no. 753 dated 20.12.2023 as incompatible with the Constitution of the Republic of Albania for the part that refers to the professions of Certified Accountants and Legal Auditors", it is quoted in the request filed in the Constitutional Court.

The Income Tax Law was approved in March 2023 by the Parliament. In December, the decision approved by the Council of Ministers was published in the Official Gazette, with the list of free professions services that will be included in the new taxation, including 26 types of activities, starting from IT service, accounting, lawyers, teachers, doctors, real estate, news agencies, employment agencies, sports, tour operators, etc.

In total, according to the Ministry of Finance and Economy, up to 29 thousand self-employed businesses will be included in the new tax regime.

MFE calculates that up to 90% of the total businesses (divided according to 3 categories, such as: self-employed, natural persons and traders) are included in the band of annual income up to 14 million ALL per year that will be taxed at a rate of 15%./ Monitor

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