Free professions should be supported with fiscal policies to curb immigration

2024-12-09 07:49:00, Ekonomi CNA

For accounting experts, frequent fiscal changes do not allow to guarantee the sustainable development of freelance businesses. Immigration is also problematic for this category.

The accounting expert and business consultant, Julian Saraçi, says that a series of supportive fiscal initiatives should be undertaken for this category, in order to curb emigration.

After 2029, as provided in the law "On income tax" for their inclusion in the tax, Mr. Saraçi asserts that tax rates should be at the levels of countries in the region.

Among other things, he recommends that for this category it is necessary to review the method of calculating VAT, as it is not properly reflected in the fiscal system.

Mr. Saraçi, how do you assess the current situation of freelancers in Albania and what changes do you think are necessary?

The current situation is complicated, due to frequent legal changes and the lack of a stable fiscal framework.

The Tax Code constitutes the "Fiscal Constitution" of any country. One of its main benefits is related to the stability of fiscal policies and the guarantee of legal certainty.

Unlike tax laws, which can be changed by a simple majority (50+1), the Tax Code requires 3/5 of the votes or 84 votes in the Assembly; a threshold that no government has had until today. This makes it protected from changes according to the whims or needs of the case.

Albania should follow the example of other countries in the region by offering preferential tax rates to freelancers, recognizing the investment in brains and their specific expenses.

Also, an in-depth reform of the 2014 Freelancers Law and local taxes is needed to adapt to the economic and social realities of freelancers and to harmonize with the rest of the legal changes.

Freelancers are an economic reality that affects important sectors such as IT, auditors, lawyers, accountants, engineers, architects, doctors, psychologists, sociologists, consultants, digital marketers, translators, dentists and many others.

By supporting this category, we support the most invested part of society, very important for economic development and long-term well-being and at the same time, curing a major problem of recent times in Albania, that of quality emigration.

Supporting policies help prevent this layer from leaving Albania, as is happening.

What concrete initiatives do you suggest to support freelancers in general and those working with international clients in particular, such as IT or other outsourcing services?

Freelancers, who provide services to businesses abroad and bring income to Albania, should benefit from the favorable tax rate. At the same time, it is essential to propose tax incentives related to professional growth and qualifications, encouraging them to advance further in their careers.

Another comprehensive initiative would be related to VAT. The way of calculating VAT should be revised, as currently their main cost – brains and expertise – is not properly reflected in the fiscal system. This leads to an artificially high added value.

What measures can be taken to ensure better social and professional support and protection for freelancers?

The contributory system of free professionals should be unified with that of employees, guaranteeing support for illness and other difficult cases. It is necessary to create a special category for freelancers in the contribution system. Also, professional insurance should be made mandatory.

Fixed fees for some professions that provide services in the market (notaries, executors, auditors) are anti-competitive and harm those to whom it is applied. We suggest that there should be an indisputable minimum and above this minimum there should be free application of the market.

What is your opinion regarding the relevant arrangements by organizations and chambers with public attributes?

First, what is most important according to the predictions to be part of the EU within 2030, I think that the relevant chambers and orders should offer continuous training with EU accredited standards, preparing professionals for international competition, being that we will soon be part according to the forecasts.

It is necessary to monitor all relevant licensing chambers and institutions by the KLSH, given that they have public attributes and full transparency on the website for each of them, and seriously pursue and punish any individual who claims to practice a certain profession and does not have a license relevant. Publication of a mandatory public register for every professional to be regularly registered with the Chambers/Orders.

Finally, have you been part of the public discussion on the audit law? Can you tell us more about that?

The Law on Auditing has been updated in accordance with the European Directive and contains some positive innovations. However, some of its provisions have been seen as problematic by experts and the IEKA community, which can be considered as an infringement of market freedom and economic freedom, discrimination of auditors, and unfair in essence by affecting competition.

In this context, it is necessary to give the right time to the revision of this law and not rush just to fulfill certain international conditions, such as the case of loans with preferential rates from the World Bank.

Although the budget is important, past experience, as happened recently with the self-employed tax, has shown us that unfair and hasty laws end up backfiring.

To conclude, at this critical moment for the Albanian economy, the unification of the voices of free professionals is more important than ever. Only through strong and independent representation can the necessary changes in policies affecting this category be achieved.

In this spirit, the Alliance of Free Professionals (APL) was created, the opening promotion will take place next week, an apolitical and non-profit organization, which exists with a single purpose: to protect the interests of free professionals and advance the status of them as a pillar of the Albanian economy./ Monitor magazine