The concept of taxes in Albanian legislation

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The concept of taxes in Albanian legislation

The concept of taxes in Albanian legislation

The tax system has had a continuous and stable development throughout the Albanian state’s development until the time in which we live. Conducting this system’s study is of great importance, not only in doctrinal terms but above all in practical terms. It is of particular significance to clarify the tax system’s main concepts in the Republic of Albania. We will then move on to a more detailed thing analysis, set in time, of the development of this system in our country. In our study’s function, a time division of the research has been made, starting from the period of the creation of the Albanian state until today.

The analysis of the Albanian concept and history on taxes will provide us with sufficient knowledge about the creation and development of the Albanian state’s tax system, especially during the period of the kingdom, in which this system is considered quite developed and modern, for the time. Finally, we will focus mainly on the period 1990-2014, a period during which Albanian legislation has mostly adapted to the acquis communautaire.

According to the Albanian legislation, by tax, we mean any payment obligatory by law, made in favor of the state budget, natural or legal persons of a country, based on the income or property they have, to create the means needed public finance spending. By tax, we mean a mandatory payment in favor of the state budget or the budget of local government bodies, established by law and paid by any person who exercises a public right or benefits from an available service in the Republic of Albania’s territory. Everything the types of taxes that are applied in a country related to each other with the help of which the economic policy goals of a country are realized constitute what is called the tax system. The tax system is an integral part of the financial system and the economic system as a whole.

Taxes and taxes constitute the primary source of revenue in the state budget or the local government bodies’ budget and remain at the core of the entire Albanian tax system. In most cases, the words “tax” and “tax” are used with the same meaning. However, taxes are paid more based on income or profits realized and goods consumed, while taxes are paid for various services provided by state authorities to citizens.

The tax system

The tax system consists of a package of laws, regulations, instructions, and tax agreements related to taxes and duties, on the manner and procedures of imposing these taxes and duties, their level, change and abolition of tariffs, policies of assessment and collection of tax liabilities, as well as forms and methods of tax control. According to law no. 9920 dated 19.05.2008, On Tax Procedures in the Republic of Albania, Article 5, paragraph ë) “Tax” is the required and non-refundable payment in the State Budget or in the budget of local government bodies, established by law and which is not is done in exchange for certain goods and services.

Taxes do not derive directly from state property or property rights over it, but they derive from private persons’ wealth and economic strength. Two characteristics that distinguish the term tax are: Tax payments lack the condition of return and direct compensation. This means that, in the case of taxes, the one-to-one principle does not apply as it does to other payments (e.g., taxes). Taxes, as a rule, are “entry” without predetermination. In most general cases, the destination of the use of taxes is not determined. Taxes and taxes must meet four principles:

– The principle of legality, according to which the rules, values ​​, and ways of collecting taxes of all kinds must be fixed by law, i.e., to be voted in parliament
– The annual principle, according to which the parliament must give every year to the government the authorization of tax collection.
– The principle of equality, according to which the joint contribution should also be distributed among citizens due to their opportunities.
– The principle of need.

The most important division that is made to taxes is that in direct and indirect taxes. Direct taxes include those taxes calculated on income, profits, real estate, and public services of specific natural and legal persons and should be paid to the state budget by them. Direct taxes hit income and wealth, and their fiscal burden cannot be delegated. For indirect taxes, we mention income tax, profit tax, property tax, etc. Direct taxes and fees can be imposed proportionally (the same percentage for all contributors) or progressively (the percentage increases according to the amount taxed).

Indirect taxes are included in the size of the price of various products, goods, and services and are paid as part of these prices by consumers and paid to the state budget by those who are sellers of products, interests, and services. Indirect taxes affect consumption and expenditures, while their fiscal burden is delegated to the final consumer. In indirect taxes, we mention value-added tax, customs tax, excise, etc. Taxes and levies in each country are grouped into national (central). Basic features of this tax they are:
– All income is taxed once.
– The tax rate is unified and local, starting from the authorities that set and collect them.

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