Transfer Pricing regulations were first introduced in Albania in 1998 in Article 36 of the Income Tax Law, but the specific and detailed rules on the implementation of this article were not published until 2014 (Official Gazette no. 70) on May 20 of that year.

In February 2015, the Ministry of Finance issued a new instruction (no. 9 of February 27, 2015), implementing advance pricing agreements.

Arm’s Length Principle

Transfer Pricing Law applies the Arm’s Length Principle to determine whether the taxable profits of a taxpayer related to a related transaction(s) are appropriate and consistent with the market conditions to be applied between independent parties.

Related Parties

According to Law No. 8438 of December 28, 1998, regarding the Income Tax, in Article 2, paragraph 4:

  1. Two persons are considered related parties if:
    1. One person directly or indirectly participates in the management, control, or capital of the other person.
    2. The same person(s) directly or indirectly participates in the management, control, or capital of both persons.
  2. One person directly or indirectly participates in the management, control, or capital of another person if:
    1. That person directly or indirectly owns 50% or more of the share capital of the other person.
    2. That person effectively controls the business decisions of that other person.

Transfer Pricing Methods

The taxpayer must choose one of the following Transfer Pricing methods:

  • Comparable Uncontrolled Price Method.
  • Cost Plus Method.
  • Resale Price Method.
  • Profit Split Method.
  • Transactional Net Margin Method.

Taxpayers may only apply another method when none of the above methods can be reasonably applied.

Transfer Pricing Documentation

In Albania, there is no fixed deadline concerning the filing of the Transfer Pricing Documentation. Conversely, the documentation must be filed within 30 days of the tax authority’s request.

Taxpayers performing transactions with related parties or companies located in low tax jurisdictions exceeding € 357,000 (approx.) must file an Annual Statement of Controlled Transactions before March 31 of the year following the year in which the transactions were performed.

The transfer pricing documentation can be filed in Albanian or English. Conversely, if the documents are filed in English, the tax authority is entitled to request the translation of the English documents into Albanian.


In case of delay in filing the “Annual Statement of Controlled Transactions,” according to the relevant provisions of the Ministry of Finance, “Concerning Transfer Pricing,” the taxpayer will have a fixed fine of Albanian Lek 10,000 (ten thousand) for each month of delay.

Source: General Directorate of Taxation

Read More

 Author:       Wolfgang Hartl
 Author URI:
function WCD_rmrl(options) {
  const readLessText = options.readLessText;
  const readMoreText = options.readMoreText;

  const rmrlContent = document.querySelectorAll("[wcd_rmrl_percentage]");

  rmrlContent.forEach((element) => {
    // INITIAL SETUP (define height, overflow and attributes) = "hidden";
    element.setAttribute("wcd_rmrl_max", element.clientHeight + "px");

    var percentage = element.getAttribute("wcd_rmrl_percentage");
    var height = element.clientHeight;
    height = Math.round((height / 100) * percentage) + "px";

    element.setAttribute("wcd_rmrl_min", height); = height;

    trigger = element.nextSibling;
    trigger.addEventListener("click", function () {
      if ( == element.getAttribute("wcd_rmrl_min")) { = element.getAttribute("wcd_rmrl_max");
        this.childNodes.forEach((node) => {
          if (node.nodeValue !== null) {
            node.nodeValue = readLessText;
      } else { = element.getAttribute("wcd_rmrl_min");
        this.childNodes.forEach((node) => {
          if (node.nodeValue !== null) {
            node.nodeValue = readMoreText;
  const rmrl = new WCD_rmrl({
    readLessText : 'Read Less',
    readMoreText : 'Read More',


Contact us

In order to contact us, please fill out the following form:

Google reCaptcha: Invalid site key.