EMPIRICAL ANALYSES OF INFORMALITY AND FISCAL EVASION IN THE FIELD OF CONTRIBUTION OF SOCIAL AND HEALTH INSURANCE IN ALBANIA

The amount of social and health insurance contributions of each state is closely linked to the realization of revenues in the state budget, as well as to the beneficiaries benefiting from the social and health insurance scheme. For this reason, this study has analyzed the level of income from social and health insurance contributions and analyzing tax evasion in this sector along with informality. The purpose of this article is to study and analyze the social and health insurance scheme in Albania since 1990, the performance of these indicators, the level of contributions collected over the years, the level of informality and tax evasion in the field of social and health insurance contributions. A detailed analysis will be made of the problems the tax administration has faced with law enforcement, the reforms that have been undertaken by the government over the years and, the numerous legal changes over the years. An important element that directly affects the amount of social and health insurance contributions is the salary on which social and health insurance contributions are calculated. To increase the amount of social and health insurance contributions, the government annually sets a minimum and maximum level of mandatory salary for contributors.