Albanian institutions have officially started implementing Law No. 86/2025 on the forgiveness of unpaid obligations in taxes, customs duties and local government fees, following the approval of implementation guidelines issued by the Ministry of Finance.
The new law is expected to provide significant financial relief to thousands of businesses and taxpayers across Albania by allowing the full or partial cancellation of outstanding obligations, including fines and late-payment interest.
The Municipality of Tirana, through its General Directorate of Local Taxes and Fees, announced that citizens, owners of commercial units and businesses with outstanding local liabilities can now benefit from the new legal provisions.
Full Cancellation for Debts Before 2015
According to the law, all unpaid local tax obligations created up to December 31, 2014, will be completely erased without requiring any payment or action from taxpayers.
Authorities confirmed that all penalties and accrued interest linked to those obligations will also be automatically cancelled.
Two Payment Options for Debts From 2015–2019
For debts created between January 1, 2015 and December 31, 2019, taxpayers are offered two alternatives:
- Pay 50% of the principal debt by June 30, 2026, and the remaining 50% will be forgiven;
- Or pay 75% of the principal debt by December 31, 2026, and the remaining 25% will be cancelled.
In both cases, all penalties and late-payment interest will be fully waived.
The Municipality of Tirana also clarified that taxpayers who have already paid the principal amount but still owe fines or interest will benefit from the cancellation of those remaining obligations.
Newer Debts Require Full Principal Payment
For obligations created between January 1, 2020 and December 31, 2024, taxpayers must pay the full principal amount by December 31, 2026.
Once the payment is completed, all fines and late-payment interest associated with those debts will be forgiven.
The General Directorate of Local Taxes and Fees urged citizens and businesses to clearly indicate during payment procedures that the transaction is being carried out under the debt forgiveness law.
Taxpayers can verify their obligations through the government’s e-Albania platform or contact local tax offices for additional assistance.
Customs Administration Calls for Early Applications
The General Directorate of Customs also announced the launch of applications for businesses seeking partial payment arrangements under the new law.
According to customs authorities, businesses must apply through customs branches and provide proof of judicial status in order to begin the process.
“Businesses that pay by June 30, 2026, may benefit from forgiveness of up to 50% of the principal debt and 100% of penalties and late-payment interest,” the customs administration said in a public statement.
Officials encouraged businesses not to wait until the final deadline before applying.
Tax Administration Preparing Official Beneficiary Lists
The Albanian Tax Administration announced that within 20 days of the implementation instruction entering into force, it will compile the full list of taxpayers eligible for debt cancellation as well as those excluded from the scheme.
Taxpayers will receive electronic notifications through the “e-Filing” system.
Following the completion of the verification process, authorities will also begin the automatic compensation of VAT credit surpluses and other tax credits against outstanding obligations.
Additional Benefits Included in Law No. 86/2025
The law also introduces several additional relief measures, including:
- Cancellation of obligations for entities deregistered from the National Business Center or dissolved by court decision before December 31, 2024, excluding social and health insurance contributions;
- Waiver of fines for undeclared or late-submitted tax declarations for periods up to December 31, 2024, provided declarations are submitted by June 30, 2026;
- Cancellation of penalties for delayed submission of financial statements and profit allocation decisions;
- Forgiveness of fines and interest generated by retroactive legal changes or final court rulings;
- Cancellation of administrative fines accumulated up to December 31, 2024.
Who Is Excluded From the Amnesty?
The law excludes several categories of taxpayers from benefiting from the debt relief measures.
Entities will not qualify if they:
- Have been convicted by final court decision for criminal offenses related to taxation or customs;
- Are currently under judicial proceedings or criminal investigation for tax or customs offenses;
- Have final court rulings in favor of tax or customs authorities regarding the obligations covered by the law.
Taxpayers currently involved in administrative or judicial appeals may still benefit, but only if they formally withdraw their appeals or legal claims before making payments under the scheme.
Requests for withdrawal must be submitted to the relevant Regional Tax Directorate starting June 10, 2026, and no later than November 30, 2026.
Government Targets Revenue Collection and Business Relief
The debt forgiveness initiative is considered one of the Albanian government’s most significant fiscal relief measures in recent years.
Authorities say the program is designed to reduce the financial burden on businesses while simultaneously improving tax collection rates and resolving long-standing unpaid obligations.
The Albanian Tax Administration is encouraging all taxpayers to review their financial status through the “e-Filing” platform and complete payments within the published deadlines in order to benefit from the incentives provided under Law No. 86/2025.