Transfer pricing in Albania

Transfer pricing in Albania at a glance

Regulation Type OECD
Are there specific transfer pricing regulations? Yes
Submission deadline N/A
Submission deadline upon request 30 days
Annual update required Yes
Official language requirements N/A
Potential impact of penalties EUR 70

Albanian tax law

Rules for transfer pricing in Albania are based upon:

  • Income Tax Law articles 2 and 36
  • Tax Procedures in the Republic of Albania articles 5, 71 and 72
  • Ministry of Finance Regulation no. 1 on transfer pricing, dated 11 February 2002
  • Income Tax Law No. 42/2014 (April 24, 2014)
  • Income Tax Law No. 43/2014 (April 24, 2014)


Rules for transfer pricing in Albania follow the OECD Transfer Pricing Guidelines.


Accepted methods

Accepted methods are:

  • the comparable uncontrolled price method
  • the resale price method
  • the cost plus method
  • the profit split method
  • the transactional net margin method

Priority of methods 

Rules for transfer pricing in Albania suggest a preference for the traditional transaction methods. Only when one of these methods cannot be used one of the transactional profit methods may be used.

Documentation requirements

Information that should be included in the documentation:

Not applicable.


Not applicable.

Requirements to prepare documentation annually

Rules for transfer pricing in Albania prescribe taxpayers are required to report all controlled transactions on an annual basis by filing a Controlled Transaction Notice.

Submission deadline upon request by tax authorities

Upon request of the tax authorities, a taxpayer has 30 days to submit its transfer pricing documentation.

Advance Pricing Agreements


A taxpayer may enter into an Advance Pricing Agreement (“APA”) with the tax authorities that will establish conditions to be satisfied with respect to controlled transactions, again in compliance with the market principles. With an APA, there can be no transfer pricing adjustments made as long as the identified conditions are fulfilled.


Not applicable.


The recently passed Income Tax Law No. 43/2014 provides for the applicable penalties in case a taxpayer does not act in accordance with the transfer pricing regulation in Albania. A taxpayer who fails to declare on time the annual controlled transactions is liable for a penalty amounting to ALL 10,000 (approximately EUR 70) for each month of delay.