Albania

Employment expenses

SHCs and voluntary pension contributions, up to the limits provided by the Law ‘On Voluntary Pension Funds’, are deductible for the purpose of calculating taxable income.

Personal deductions

Education expenses and under-age child allowances

• Deduction for current expenses for children's education:  100,000 ALL/year  (if they have an income of less than 1,200,000 ALL/year from employment and business);
• Compensation for each dependent child under the age of 18: 48,000 ALL per year. 

These deductions are claimed by the family member with the highest annual taxable income, through the tax return.

Personal yearly allowances (applicable from 1 January 2025):

• ALL 600 000 (if annual income from employment and/or business is up to ALL 600 000)
• ALL 420 000 (if annual income from employment and/or business is above ALL 600 000 and up to ALL 720 000)
• ALL 360 000 (if annual income from employment and/or business is above ALL 720 000)