On 30.01.2020 the Albanian Parliament approved law 4/2020 which regulates the automatic exchange of information between the member states of the Multilateral Convention for mutual assistance for tax purposes, taking another step towards the implementation of the standard for exchange , or the Common Reporting Standard.
Il Common Reporting Standard, henceforth CRS, is under strict control by an important international network, Global Forum on Transparency, which currently has 161 members.
Albania ratified the multilateral agreement as early as 2016. It should be stressed that Albania's choice to become part of this agreement is a voluntary choice, based on the fact that the exchange of information is the starting point for the fight against international evasion.
The process of adaptation and implementation in internal regulations required a significant preparation of legislative changes by the Albanian state, because in addition to financial matters, privacy and IT development issues are involved.
The first exchanges of information for tax purposes by Albania with all member countries are expected by 2021.
The implementation of the Convention in internal regulations is only the penultimate step of the process, pending implementation tools.
Italy, as always, is giving great help, confirming once again the strong ties between the two countries. In fact, citing an article of 28 February last published in the Revenue Agency's online magazine "Fisco Oggi", as part of a partnership between the Agency and the Global Forum, several specialists went to Tirana for "the development of the legal framework".
The CRS for the automatic exchange of information requires that the financial institutions of a country collect and inform the national tax authorities on certain data of the financial accounts of persons fiscally resident abroad. The National Authority automatically transmits the data to the country of residence of the taxpayer who will use the information for the purposes of calculating the tax return.
The data that can be exchanged between the countries that are part of the standard adopted by the OECD are information on the identification of the holder of a current account, information on the account, information on the activities of the account, such as dividends, interest, insurance contracts, as well as income from the sale of financial assets, etc.
To simplify the concept; the data of the current account of an Italian taxpayer in one of the Albanian banks will be collected and transmitted by the latter to the Albanian authority, which will automatically transmit them to the Italian authorities.
The process will concern the many Italians who work and have ties with Albania, or the Albanians, who have been living in Italy for years now, but who continue to receive income as above from the country of origin. the same path will be followed by the Italian financial institutions and those of the other member states of the agreement with Albania.
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