Law Firm and Accounting

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Legal Lockdown

• Law no. 9920, dated 19.05.2008, "Tax Procedures in the Republic of Albania", as amended.
• Law no. 9723, dated 03.05.2007, "On Business Registration", as amended.
• Law no. 9901, dated 14.04.2008, "On Traders and Business Companies", as amended.
Closing a business is done through the application for denying. The subjects shall be derecognised from the commercial register in the cases provided by the legislation in force, for the destruction and invalidity of legal entities, the distribution of a simple company, in the event of termination of the activity of the natural person. In any other case provided by the Legislation in power.
Non-recognition was made:
• voluntarily by the subject;
• on the basis of a final court decision;
• as foreseen by special laws.
Persons registered in a tax body may be derecognised in the following cases:
• natural and legal persons, according to the provisions of the Law "On Business Registration", as amended;
• non-profit organizations, based on court decision;
• tax representative, with the fulfillment of the tax liability as such;
• persons who, under the law on bankruptcy, have been declared bankrupt by a final court decision;
• public legal entities, in accordance with the legislation of the field that determines their activity.
The National Business Center or the court, upon receiving the request for derecognition by the taxpayer, notifies the competent tax authority of the registration of the opening of liquidation proceedings or the request for denying the natural person or the denying request of the legal person even when we are dealing With a request for derecognition without liquidation. The competent tax authority within 10 business days from the date of filing the application for de-registration is obliged to verify the tax status of the entities and notifies KBC or the court and the entity at the same time. When the tax authority, according to the risk analysis, judges that it is necessary to exercise control over the entity in which the entity operates, then this period may not exceed 30 business days, including the performance of the audit.
The National Business Center or the court can not perform the de-registration if within the said 30 day deadline the tax administration objects in writing to de-registration.
The objection to the taxpayer's non-recognition by the tax administration indicates the amount of the unpaid tax liability of the taxpayer and, in the case of the legal person, the fact that he did not present the financial statements of the closing of the activity until the Liquidation point or did not submit the tax declarations. In cases where entities registered at the National Business Center or in court result in tax liabilities, they are automatically derecognised after all tax liabilities have been paid, including obligations arising in the event of non-recognition from liquidation.
In cases where the objection of non-recognition by the tax authorities arises as a result of non-submission of financial statements or tax declarations, the competent tax authority is immediately obliged to withdraw the objection to derecognition and the National Business Center promptly notifies the taxpayer.
If, despite the payment of the obligation for which de-registration is opposed, the competent tax authority has not withdrawn the objection, then the entity sends to the National Business Center the document certifying the payment of these tax liabilities. In this case, the National Business Center immediately performs the de-registration of the entity and immediately notifies the competent tax authority and the taxpayer.
Caution: Tax deduction does not eliminate existing tax obligations and does not prevent tax administration from assessing or collecting tax liabilities. For each procedure that the tax authority and the ICRC carry out according to this article, when the de-registration procedure begins and until the final de-registration, the taxpayer is also notified at the same time. The taxpayer's derecognition date in the tax administration is the date of derecognition at UAC or court.
Date of de-registration of self-employed persons in the business or outpatient service of the head of the household, who employs individuals such as housework, caretaker, etc. From this nature, tax representatives and farmer are the date of their de-registration approval by the tax administration but with effect on the filing date of the request for denying.