Overview

Albania has a tax treaty in force with France.

Albanian clients may benefit from a reduced treaty rate on royalties if required documents are properly certified.

Withholding Tax Rate on Royalties

• Treaty rate: As defined in the France–Albania treaty (royalties article).
• Domestic rate if no documents: 25 percent.

Required Documentation for Treaty Benefits

1. Form 5000-SD (Attestation of Tax Residence)

• Mandatory.
• Must be certified by the Albanian tax authorities.
• Annual renewal required.

2. Form 5003-SD (Reduction/Refund Request)

Required in two cases:

1. To apply treaty benefits up-front, when requested by authorities.
2. To obtain a refund if 25 percent was withheld initially.

3. Optional Supporting Documents

• Albanian Tax Residence Certificate (cannot replace Form 5000-SD).

Additional Notes

• Albania is not an NCST.
• Documentation must be valid for the relevant payment period.

BOFiP Reference

BOI-INT-CVB-ALB