Albania’s Tax Directorate has warned businesses flagged for underreporting wages, giving them until November 20 to make corrections. Companies that fail to act by this deadline will face ongoing monitoring and possible audits.
The Tax Directorate has sent notices to 37,331 businesses that have been identified as high-risk due to wage discrepancies. Many of these businesses report high numbers of employees on minimum wage or specialized workers whose salaries do not match industry standards.
The warning follows a similar message sent in early October. However, many businesses have yet to take action. If they don’t update their records by November 20, they will be closely monitored in the coming months.
The Tax Directorate has made it clear that incorrect wage declarations can lead to tax evasion charges, resulting in both fines and legal penalties.
“Businesses are urged to correct their payrolls to reflect accurate wages, ensuring fairness for workers and reducing unreported wages in the labor market,” said Ilir Bina, Director of the Tax Directorate.
This move is part of Albania’s ongoing efforts to reduce informal wages and strengthen its social security system.
Following the initial warning, around 9,000 businesses have updated their wage declarations, increasing the reported wage fund by 1.25 billion leks.
