CHAPTER 33: FINANCIAL AND BUDGETARY PROVISIONS

The law no. 142/2014, date 23.10.2014 and law no. 158/2014, date 27.11.2014 have changed the law no. 61/2012 “For excises in Republic of Albania”, as changed. The DCM no. 30, date 14.1.2015 has changed the DCM No. 612, date 5.9.2012, “For Implementing Provisions of the law “For excises”, amended;

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  The new law "On VAT", 92/2014, dated 24.07.2014, entered into force on 01.01.2015.
  
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  As regards the application and enforcement of the provisions of the new VAT law 92/2014 dated 24.07.2014, is approved Guideline no.6 dated 30.01.2015 "On the Value Added Tax in the Republic of Albania", published in the Official Gazette. No.12, dated 06.02.2015, which has defined and explained in detail the implementation of the provisions of law.
  

1. Paragraph 1, Section 10, Article 51, amended as follows: "10. Cattle for fattening, whose importation is exempt from value added tax, pursuant to Article 56, Section 40 of the law, are live animals for fattening, classified according to the CN’s codes.

2. In paragraph 5 of Article 68 "book sales and book purchases", the words "not later than date of 14” shall be replaced with the words "not later than the date of 10".

The Ministry of Finance can give the information concerning the reasons for these changes.

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  As regards Transfer Pricing, the following act is approved:
  

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  Ministry of Finance prepared and submitted for approval to the CoM, the Public Expenditure Calendar (PEM) for 2015.
  
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  CoM approved the PEM Calendar 2015, by CoMD no.34 dated 21.01.2015.
  

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  Ministry of Finance prepared and submitted for approval to the CoM, the Medium Term Budget Program (MTBP) Preparatory Ceilings for 2016-2018.
  
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  Ministry of Finance issues the Guideline no.8 dated 27.02.2015 for the MTPB 2016-2018 preparation.
  

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  CoM approved the MTBP Preparatory Ceilings, by CoMD no.285 dated 01.04.2015
  

ANNEX I.1.1: PRINCIPLES OF BETTER ADMINISTRATION IN THE CODE OF ADMINISTRATIVE PROCEDURES

The Principle of Open Administration Offices

1. 
   Everyone has the right to become familiar with the files and registers of administration offices, even though an administrative proceeding in which they are interested in is not in progress, unless prohibited by law.
   
2. 
   The right to become familiar with the files and registers of the administration offices is regulated by a special law (data processing).
   

Article 10

1. 
   In the relations with the individuals, the Public Administration Offices are guided by the principle of equity. This means that no one should be privileged or discriminated against because of sex, religion, ethnic origin, language, political, religious or philosophical convictions, economic status, education, social or parental belonging.
   
2. 
   The acts of the public administration offices, which fur purpose of protecting public interest or rights of others, limit fundamental rights of the individual recognized by the Constitution, must observe the principle of proportionality and refrain from violating rights and freedoms. This implies that the actions of public administration must be such that they:
   

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  seek fulfilment of lawful public interests;
  
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  make use of proper means which are proportionate to the aims which are intended to be achieved.
  

Article 12

1. 
   Public Administration Offices' Bodies exercise their activity in close cooperation with private persons by:
   

1. 
   providing information and necessary clarifications to individuals;
   
2. 
   supporting and stimulating the initiatives of individuals as well as welcoming their suggestions and information.
   

2. 
   Public Administration Offices are responsible for the written information they provide to the private persons.
   

In the decision-making process, the bodies of the Public Administration Offices assure the participation of the private persons and/or associations if the interests of the groups they represent are infringed from these decisions.

1. 
   The Public Administration Offices shall be structured in a way to ensure a sufficient access in the decision-making process.
   
2. 
   The Public Administration Office and its employees are obliged to serve the public in the most effective possible way in each and every case
   

Article 17

1. 
   The services of the Public Administration Offices are free of charge for the service offered by the Administration Offices, unless law provides a payment.
   
2. 
   The administration offices does not require the payment of taxes or expenses provided in paragraph 1 of this article, in case impossibility to pay is proved. Cases of impossibility are determined in sub-legal acts. "
   

Article 93

1. 
   Upon the end of the investigation procedure, with exception of cases provided in article 96, the stakeholders have the right to express their opinion before the final decision is taken.
   
2. 
   The body conducting the investigation procedure decides case by case whether the stakeholders will give their opinion in writing or verbally."
   

ANNEX III.7.1: INTERNATIONAL TREATIES AND CONVENTIONS WHERE REPUBLIC OF ALBANIA ADHERES

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  Berne Convention "On Protection of Literary and Artistic Works"; signed in Bern on 09.09.1886, complete with Paris Act of 24.7.1971 and amended on 8 September 1979; RA has acceded to this Convention, promulgated by decree nr.487, dated 03.09.1993, "On the adherence of the Republic of Albania in the Berne Convention" On Protection of Literary and Artistic Works"
  
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  TRIPS Agreement - "On certain commercial aspects relating to copyright and other rights related to it"; signed on 22.12.1995.
  
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  "Paris Universal Convention on Copyright" and its two additional protocols, signed in Paris on 24.07.1971.RSH has acceded to this Convention, promulgated by Law no. 9129, dated 08.09.2003 "On the adherence of the Republic of Albania in the Universal Convention of Copyright and its two additional protocols".
  
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  Rome International Convention "On Protection of Performers, Producers of Phonograms and Broadcasting Organizations" - signed on 26 October 1961. RA has acceded to this Convention, promulgated by Law no. 8579, dated 16.02.2000 "On the adherence of the Republic of Albania to the International Convention for the Protection of Performers, Producers of Phonograms and Broadcasting Organizations
  
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  "Convention" Protection of Producers of Phonograms against Unauthorized reproduction of their phonograms, signed on 29.10.1971. RA has acceded to this Convention, the law no. 8585, dated 15.03.2000.
  
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  WIPO Treaty on "copyright" - December 20, 1996; RA has acceded to this Convention, promulgated by Law no. 8838, dated 11.22.2001 "On accession of the Republic of Albania on the WIPO Treaty on copyright".
  
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  WIPO Treaty "For performers, executions and Phonograms; RA has acceded to this Convention, the law no. 8740, dated 15.02.2001 "On accession of the Republic of Albania in the Treaty of WIPO's, Performances, executions and Phonograms"
  

ANNEX III.7.2

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  50 claims were presented by the Collective Management Agency for the Rights of Producers concerning the fulfilment of obligations and paid remunerations for:
  

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  19 proceedings were decided in favour of the claimer;
  
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  Six proceedings were ceased on the request of the claimer;
  
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  One proceeding was ceased after being informed that the other party does no longer operate in the market;
  
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  10 proceedings were abandoned by the claimer; and
  
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  15 proceedings were suspended due to the expiration of the License of the Collective Management Agency.
  

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  60 claims were ensued by the representative of the producer within the Albanian territory
  

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  Two proceedings were decided in favour of the claimer;
  
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  11 proceedings were ceased on the request of the claimer;
  
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  Two proceedings were suspended on the request of the claimer;
  
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  44 proceedings are still being reviewed; and
  
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  In 1 claim the ACO requested the correction of the initial claim.
  

Concerning the rights of directors and screenplay writers, four claims were presented by the Collective Management Agency for the Rights, concerning the fulfilment of obligations and paid remunerations for:

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  Three proceedings were suspended due to the expiration of the Collective Management Agency’s license; and
  
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  One proceeding ceased on the request of the claimer.
  

The author or the rights owner placed 13 claims forward, as follows:

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  Two proceedings were suspended on the request of the claimer;
  
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  Eight proceedings are still being reviewed by the ACO; and
  
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  Three proceedings were decided in favour of the claimer.
  

Amongst the significant number of fines imposed by ACO inspectors, appeals were lodged in 18 cases, which resulted as follows:

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  In 16 (fifteen) cases the administrative measure was upheld and the request for appeal was refuted; and
  
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  In 2 (two) cases the appeal is in the process of being reviewed.
  

The ACO, in compliance with its obligation and respecting all legal provisions, requested the issuance of the Order of Execution in 31 instances, of which:

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  3 claims are still in the process of being reviewed by the Court;
  
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  The Court rejected 4 claims and the ACO has exercised its right of appeal. In one instance the Court of Appeal has reviewed the appeal and as a result has decided that the ruling of the Administrative Court of First Instance of Durres was not in accordance with the law and accepted the ACO's request;
  
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  19 claims for the issuance of the Order of Execution were accepted by the court; and
  
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  The court accepted 5 claims for the issuance of the Order of Execution, but in all of the cases the decision has not been published within the terms established by the Code of Civil Procedure.
  

After complying with pertaining procedures, the ACO has requested the execution of executive titles by bailiff offices in 13 instances. Of these requests, seven cases were fully executed, and six are still in the process of execution.

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  In one instance the ACO was the plaintiff and the case is still being reviewed by the court; and
  
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  In eight instances the ACO was the respondent:
  

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  In three instances the court has decided in favour of the respondent;
  
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  In one instance the court has decided in favour of the plaintiff and the ACO appealed the decision;
  
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  In one instance the proceeding was ceased due to the request of the plaintiff to withdraw its claim; and
  
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  In three instances the court is still reviewing the case.
  

ANNEX III.10.1: MARKET STATISTICS FOR THE FOURTH QUARTER OF 2014

ANNEX III.10.2

ANNEX III.19.1: ECONOMIC AND SOCIAL ASPECTS OF CHANGES IN THE DRAFT LABOUR LEGISLATION

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  Regulates the work relations of foreign employees sent to temporary work in Albania.
  
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  Additional causes for which discrimination in employment and vocational training is prohibited, such as “sexual orientation” or “living with HIV/AIDS”, as well as adapts the meaning of discrimination with the EU directives, the Constitution of the Republic of Albania and the Law on protection from discrimination. It also provides that the burden of proof is left to the employer, in order to bind him to take all the necessary measures to respect the principle of non-discrimination.
  
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  Guarantee that the annual leave is not compensated in cash even in cases when the employer and the employee agree to amicably resolve the disputes between them.
  
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  Informing and consulting the organization of employees, or in its absence, the representatives of the employees, on the economic and financial data of the company or other decisions related to the potential development of the company, which have a considerable impact on the employment situation of the company.
  
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  Forecast of a break, when work lasts more than 6 hours per day.
  
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  Employee benefits the salary for official public holidays only when they fall on work days, as it was deemed that based on the previous formulation, which determined that when the public holiday falls on a weekly holiday, the holiday was postponed to Monday, this created many paid holidays which increased the work cost that were covered by the employer.
  
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  In order to strengthen the protection of minors has increased from the age of 14 to 15 the minimal age of minors employed during school vacations, or who attend vocational training courses.
  
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  Obligation of the employer to guarantee suitable working conditions for a pregnant woman, or for a breastfeeding woman, that decides to return to work after 63 days of postpartum. The right of a woman, who has decided to return to work after 63 days of postpartum leave, that in agreement with the employer benefits:
  

1. 
   A paid break of 2 hours, within the normal working hours; or
   
2. 
   Reduced working hours, by 2 hours, with the same salary as if she had worked normal daily working hours;
   

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  The special protection of women provide that the pregnant women, or those who have delivered birth and have returned to work after 63 days postpartum, are not forced to work during the night shift until the child becomes 1 year old, if this harms the health of the woman and child, in order to not deprive the woman from the opportunity to work. If the provisions provided prohibition to work, this would deprive the woman in the cases she wished to work. It also provides additional guarantees to ensure the return of the woman to work after the end of the maternity leave.
  
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  Guaranteeing non - discrimination in reward for everyone and not only for males and females. Forecast of the parental leave.
  
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  The right of employees to organize a general strike to oppose to the Government’s policies and social and economic measures which impact the interests of employees.
  
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  Extends the tripartite social dialogue even in a regional level. Establishment of Regional Tripartite Consultative Councils, which will have discussions especially on the regional policies related to the employment, vocational training, protection of employees, hygiene and technical safety, production, welfare, education and economic matters. The establishment of the abovementioned councils reflects the ILO and EU recommendations to stimulate the social dialogue in regional level as well.
  

ANNEX III.19.2

ANNEX III.19.3

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  In order to keep track the performance of every inspector in continuity, with measurable indicators, with Order of Chief-Inspector, no. 2894 of 15.10.2014, was designed and distributed to the regional branches the form to be completed weekly electornically to obtain reporting in a country level.
  
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  Aiming at the unification and operationality of the self-declaration of the economic subjects, following the new online self-declaration process, along with the Order No.2653 of 19.9.2014 has been sent in electronic format to all regional branches a designed register.
  
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  Considering the increased number of inspections due to complaints, was designed a register, for the recording, registration and reporting, encompassig every stage of an inspection.
  
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  October 2014 - implementation of newOSH legislation (113 inspectors ). This is a contribution to effective implementation of new legislation as well as a very important part of the capacity building for Labour Inspectors
  
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  Regarding the measures taken against informal economy, the State Labour Inspectorate (SLI), in 2014 identified 1 757 undeclared workers and 2 886 unregistered subjects with 4 638 undeclared workers.
  

SLI inspections were focused on:

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  Inspections in the evenings, during weekends and public holidays: 93 % of undeclared workers identified during the entire 2014.
  
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  Identification of unregistered business entities
  
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  Inspection of business entities that carry out activities that have high risk to occupational safety and health of workers and/or high risk to employ unregistered workers, or fail to implement Albanian law concerning work hours or minimum wage. Therefore, the number of thematic inspections in 2014 increased by 56% compared to the same period in 2013 (1717 inspections for 2014 compared to 483 for 2013).
  

Inspection in the services sector especially during the tourist season carrying out inspections at hotels, bars and restaurants aiming to eliminate all forms of employment breaching labour legislation, the elimination of employment without work contracts, and/or disrespecting the legal form required by labour legislation.

ANNEX III.19.4

The action plan is to be adopted by the government within June 2015. Through this action plan the government has launched six priority sectors, namely: civil registration, education and promoting intercultural dialogue, employment and vocational education and training (VET), healthcare, housing and urban integration, and social protection.

The methodology for Action Plan development consisted of:

1. 
   The preparatory phase started with introductory meetings aiming to present the Action Plan development process to key stakeholders and seek their inputs. At the same time, an analysis of relevant strategies, policy documents and reports was also undertaken in order to collect information about the results of past activities, draw on good practice examples and lessons learned, and ensure that the Action Plan is well situated within the government’s overall development agenda.
   
2. 
   Sectorial workshops with the ministries and civil society representatives, including members of Roma and Egyptian associations and international organizations.
   
3. 
   Focus groups with representatives of Roma and Egyptians, local governments, international organizations and gender equality specialists.
   
4. 
   Follow up individual meetings with the line ministries (with special focus on collecting baseline data and budgeting the Action Plan measures).
   
5. 
   Field visits to the municipality of Berat and the Transitory Centre in Tirana.
   
6. 
   Public presentations of the draft Action Plan document, discussion and finalization.
   
7. 
   Concurrently, the Ministry of Urban Development is developing a Strategy for Social Housing, which is expected to address housing issues of Roma and Egyptian communities.
   

ANNEX III.19.5