TEDA Investors Invetives

Fiscal Incentives

Technological and economic development areas benefit the following facilities:

  • Entrance and exit of goods into/from the area, formalities and procedures are made according to the provisions of the Customs Code;
  • Developers and users are exempted from the payment of the 50 percent tax-on-profit rate for the first 5 years from the commencement of their activity in the area;
  • 20 percent of the annual capital expenses are recognized as deductible expenses of the tax period to the developer investing in the area, within 3 years from the date of works commencement or to the user investing in the area, within 3 years from the commencement of the economic activity in the area, notwithstanding the amortization amounts, according to the law for income tax, for a period of 2 years;
  • Supply of Albanian goods, destined to be placed in the area are considered as supply for export with zero level, in conformity with the stipulations of law for the value added tax and customs legislation;
  • The project of the developer is exempted from the tax of infrastructure impact;
  • Constructions realized in this area, according to the project of the developer are exempted from the tax of immovable property for a five-year-period;
  • The developers or users of the area are exempted from the tax on transferring the right of ownership on immovable properties;
  • Expenses for salaries and social and health contributions which the employer pays for the employee, are recognized 150 percent of the amount during the first fiscal year of activity operation. In the following years, additional expenses for salaries, in relation to the previous year, for effect of calculating the taxable profit are recognized as accepted expenses with 150 percent of the amount;
  • Costs of training the employees in the technological and economic development areas, for effect of calculating the taxable profit are recognized as accepted expenses of the tax period with double value, for a 10-year-period from the commencement of the economic activity;
  • Expenses for scientific research and development are recognized as accepted expenses with double value, for a 10-year-period from the commencement of the economic activity.
  • Transfer of an existing activity in the Albanian territory into the technological and economic development area, with the main purpose of benefitting facilities provided in this law, is prohibited. Every transaction that basically results in the transfer of the economic activity, according to the above stipulation, is prohibited.
  • If the products exiting the area for sale in the internal market, with a price under the normal price for the product in question, or products similar or directly substitutable, and, when material damage is caused to local industry, the ministry responsible for economy applies a correction tariff of the missing value on the product in question. The ministry responsible for economy is in charge for the enforcement of this corrective mechanism

Administrative Incentives

  • Shortens the application period to up to 15 days from the submission of the application.
  • In cases when the goods go out of area, for domestic market using, it will be applied a fee missing correction value which is determined by the Ministry of the Economy.