Our Approach.

Registering the fund under the Albanian’s reporting fund regime is beneficial and can provide incentives for investors to invest. A reporting fund may also be more attractive to investors by preserving Capital Gains Tax rates on a future disposal.

Solutions

We acknowledge that not all investment funds are the same. Our specialist team works together with the funds administrators and advisors, to provide an end-to-end solution for their Albanian reporting fund needs. Therefore, we can provide a fully tailored service to best suit your requirements.

Compliance

The focus of an investment fund is to drive value for both your investors and portfolio companies. However, there are strict reporting deadlines and you need to provide up to date and timely information to your investors. In addition, as the Albanian fund regime evolves, it is important for funds to stay on top of any changes surrounding the regime and understand the impact for the fund and its investors going forward. Whilst the failure to meet deadlines and eventual changes can cause potential reputational damage with limited partners, there are severe penalties for missed regulatory deadlines.

Taxation

The investor must pay tax on any distributions they receive from a reporting fund, together with the calculated excess reportable income annually. The investor would generally pay tax at the Income Tax rates on these income amounts.

Outsourcing

It can be essential for an investment fund to outsource their accounting and investor reporting, and our specialist team here at Albanian Consultancy will make you feel like we are an extension to your current finance team.

Our Fund Accounting Services Include:

  • Prepare and review quarterly/yearly investor reporting
  • Fund accounting and bookkeeping
  • Prepare and review LP Capital Account Statements
  • Calculation and review of drawdowns/distributions/synthetic carried interest
  • General partner profit share calculation
  • Liaising with fund administrators
  • Provide bank funding reporting (including compliance certificates and management accounts)
  • Review fund flows for new investments/disposal of investments
  • Provide Albanian tax reporting for partnerships
  • Specializing in private equity, venture capital, real estate and infrastructure
  • Company/partnership secretarial
  • Completing audit confirmations/answering queries from limited partners
  • Equalization calculations

Process.

Initial application

There is an initial application that normally needs to be submitted before the end of the accounting period in which the fund intends to register under the reporting fund.

Going forward, if further share classes are issued or sub-funds launched, then consideration should be given to whether the additional share classes should be brought within the Reporting Fund regime and, if so, further initial applications will be required.

Annual reporting

Following the initial application, the fund is required to prepare and send to Tax Administration Office and its investors annually various documents, including a calculation of the excess reportable income for the relevant shares. This is due within six months of each accounting period end.

In summary, the following are generally required each year:

  • A computation of the reportable income and excess reportable income per share class
  • A report to investors including the ERI (Excess Reportable Income) amount, and to be shared with the investors in the fund as well
  • A copy of the audited financial statements
  • A declaration confirming that the fund is compliant with the reporting fund regulations
  • Completion of the relevant Administration Tax Office form

How we can support you?

We can provide an end-to-end solution for which can include the following:

  • Advising on the tax rules as applied to reporting and non-reporting funds
  • Advising on and reviewing the PPM/prospectus of the fund from a Tax Administration Office perspective
  • Advising funds on tax implications of transferring from a non-reporting status to reporting, and from reporting status to non-reporting
  • Preparation of the initial application to obtain reporting fund status
  • Advising on, reviewing and supporting with the preparation of the annual excess reportable income calculations, supporting documents, disclosures and declarations.
  • Providing advice regarding changes to a fund structure, including conversions and mergers, together with the impact of changes to tax rules

Manage Investments with Confidence

Effective fund management demands precision and transparency. Our reliable fund accounting services deliver accurate financial insights and accountability, ensuring your investments are handled with care. Trust us to support your financial growth.

GENTIAN BARJAMAJ

Founder – Albanian Consultancy

Get a personal consultation.

Office

Rruga “Sami Frashëri”, P. Titan Konstruksion, Kati 10, Nr.34-Tiranë

Contact

[email protected]

Open Hours

Monday – Saturday: 8am – 6pm

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