LEGAL ALERT

Amendments to Albania's Accounting and Financial Statements Law

WHAT CHANGED

Law No. 87/2026 expands Law No. 25/2018 to cover sustainability reporting, consolidated sustainability reporting, assurance, public country-by-country income-tax information and disclosures by qualifying non-EU parent groups with Albanian subsidiaries or branches.

Mandatory sustainability reporting applies to entities that simultaneously exceed an annual average of 1,000 employees and operating revenue of ALL 45 billion. The amended annex retains the 2025–2027 size thresholds and increases the 2028 asset and operating-revenue thresholds; the law enters into force 15 days after publication.

WHO IS AFFECTED

Every entity registered in Albania. Accounting obligations under Law No. 25/2018 apply irrespective of the rate of tax an entity pays — including entities within the 0% corporate income tax band under Article 69 of Law No. 29/2023, which must still keep books and prepare annual financial statements.

Most directly affected are entities near a size or reporting threshold, and those whose audit obligation depends on where those thresholds sit.

WHAT TO DO

• Check whether the amendments move any size category or reporting threshold that applies to your entities.
• Where an audit obligation turns on a threshold, reassess it for the current financial year.
• Remind clients in the 0% band that these obligations are unaffected by their tax position.
• Establish the first financial year to which the amendments apply — accounting amendments frequently commence by reference to financial years rather than calendar dates.