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Fiscal Peace, applications for the renewal of the agreement for 2027 are expected to take 1 month

2026-07-28 07:37:00, Aktualitet CNA

Fiscal Peace, applications for the renewal of the agreement for 2027 are

Businesses that will seek to renew the Fiscal Peace agreement in 2027 are expected to have more time available for applications, as the procedure deadline is expected to be extended.

The implementation period of the agreement is 1 year, but it can be renewed up to 2 times. The implementation period if the agreement is renewed also lasts 1 year.

Sources from the tax administration indicate that, unlike the first year of implementation when applications were limited to about 20 days, next year the application period is expected to be extended to about one month.

In the first year of implementation of the law "On the Fiscal Peace Agreement", applications began on May 15 and ended on June 5, 2026, setting a short deadline for businesses to be included in the scheme.

According to sources, for the second year of implementation of the agreement, in 2027, applications are expected to open on May 15 and end on June 15, creating a period of approximately 30 days for submitting requests.

Under the agreement, businesses also gain the right to correct the financial statements of the previous three years, while the revaluation applies only in the first year of the agreement.

Experts previously requested an extension of the deadline for applications for the Fiscal Peace agreement, as the limited implementation deadlines could create difficulties in implementing the process.

Meanwhile, representatives of the General Directorate of Taxation, in a meeting with businesses, explained how this year any further extension of deadlines would affect the shortening of the minimum 1-year period of implementation of the agreement for taxpayers.

But preliminary data shows that business interest in concluding the Fiscal Peace agreement has been low.

The law provides that the Fiscal Peace Agreement may include businesses with gross income over 14 million lek per year, while excluding entities against which criminal proceedings have been opened for tax evasion or tax fraud.

In this 1-year agreement (with renewal rights up to 2 times), businesses with gross income over 14 million lek per year will be charged a tax prepayment on an increased taxable base.

So the business will not prepay any tax, but it will be calculated on the taxable base, consisting of the taxable profit of the previous year, plus an 18% increase. If the actual profit at the end of the year exceeds the limit (calculating the profit of the previous year plus an additional margin of 18%), 5% will be paid on this excess.

Essentially, the agreement does not change the corporate tax rate, which is 23% for businesses with net income over 14 million lekë, but it increases the taxable base, as the tax will be calculated on the previous year's profit plus an additional margin of 18%. Only for profit exceeding this estimated level, an additional tax of 5% is paid.

In exchange, businesses will benefit from the exemption from tax audits for the period of implementation of the agreement.

In addition to prepaying the tax against non-audit for 1 year, large businesses that will enter into the Fiscal Peace Agreement with the tax administration will also have the opportunity to re-declare the financial statements of the last three years, against a 5% tax.

The 5% tax will be applied to changes such as: revaluation of cash balances, writing off fictitious assets or liabilities, declaring previously undisclosed assets, redeclaring retained earnings and distributing them as dividends.

For all these cases, there will be no fines, interest or late fees, provided that the taxpayer declares in advance that he will benefit from the agreement./ Monitor