The Annual Individual Income Tax Return (DIVA) is the annual return through which individuals declare all income earned during the year and determine their final personal income tax liability. Through this return, the annual tax is recalculated by taking into account all income sources and the tax deductions allowed by law, and by comparing the tax already paid during the year with the recalculated tax, in order to determine whether an additional payment is due or a refund is applicable. With the entry into force of the new Income Tax Law (Law No. 29/2023), new tax relief measures have been introduced that directly affect families with dependent children. These measures specifically include tax deductions and refunds related to the costs of raising and educating children. The sections below explain how this scheme operates, who is eligible to benefit, what has changed, and how to complete the annual tax return in order to claim the applicable benefits.
What is DIVA and why do you need to file it?
DIVA is the annual personal income return. If you have earned income above a certain threshold, had more than one employer, or had income that was not taxed at source, the law requires you to file this return within the deadline (by March 31 of the following year). The purpose is to allow the tax administration to recalculate your tax — that is, to compare how much tax you paid during the year (e.g., withheld from your salary each month) with how much you should have paid in total after combining all income.
If during the year you paid less tax than required, the result will show a tax liability. If you paid more tax than required (for example, because you received additional tax deductions), a credit balance is created — meaning the tax authorities owe you money that will be returned as a refund. In this way, DIVA ensures that each individual pays exactly the lawful amount of tax — no more and no less.
Who is required to file? According to the new law, you must complete DIVA if you meet at least one of the following conditions:
High Income
You have annual gross income over 1,200,000 ALL (from any source: salary, rent, dividends, bank interest, capital gains, gambling, etc.). This threshold was 2,000,000 ALL but has been reduced to 1,200,000 ALL starting with income for 2024.
Multiple Employment
You have been employed by more than one employer simultaneously, regardless of the total amount of your income. Even if your combined salary is below 1,200,000 ALL, the fact that you had two (or more) concurrent salaries requires you to file, because your tax must be recalculated on the total.
Untaxed Income During the Year
You have earned income over 50,000 ALL that was not taxed at the time of payment. This applies, for example, to rental income (when the tenant is an individual and no tax was withheld), foreign income, or any other income where tax was not withheld at source. These cases must now be declared and taxed through DIVA.
Even non-residents who have earned taxable income in Albania must submit this return.
If you do not file the return at all by the legal deadline, you are fined 3,000 ALL. Also, if the return shows tax owed that you have not paid on time, you will be charged late payment interest and penalties. Therefore, it is important to file DIVA on time if you are required to not only to avoid fines but also because you may be entitled to refunds or tax deductions that are due to you.
How refunds work for dependent children and children’s education expenses
The newest tax reliefs (introduced by the new law) relate to tax compensation for families with dependent children. This scheme begins to be applied to income for the year 2025 and onward, which means that we will see it in practice for the first time in the return filed in March 2026.
How it works When you complete DIVA, you will be able to declare a certain amount as a deductible expense for each dependent child under 18 and for their education expenses. These declared expenses reduce your annual taxable base, the tax is recalculated, and compared with the tax you paid during the year. If the recalculated tax is lower than what you actually paid, the difference is returned to you as a refund by the tax administration.
So, the state does not give a fixed cash amount directly per child, but rather reduces the tax you paid by deducting 48,000 ALL less taxable income for each child and up to 100,000 ALL for education expenses as deductible items. This reduction in the taxable base causes the recalculated tax to be lower than the tax that was withheld without these deductions.
Example If during 2025 your salary was taxed normally every month, when you file in 2026 and deduct the amounts for the children, it may turn out that you paid, for example, 30,000 ALL too much in tax compared to what you should have paid. You have the right to get this 30,000 ALL back from the tax authorit
The Tax Administration has stated that after you complete the return with these deductions, if a credit balance results (overpaid tax), you can submit a request and within 3 months receive the refund. Practically, the money you overpaid in tax will be transferred to your bank account (or may be offset against other tax liabilities, according to the rules).
Important The refund is not automatic — you must declare the children and expenses correctly and request the refund after the return is confirmed. Also, the compensation is not unconditional: you must have documentation proving the education expenses (invoices, payment receipts to schools, etc.), and the child must be legally in your custody.
Who benefits and who is excluded from these deductions?
Primary beneficiaries of this scheme are resident parents in Albania with dependent children under 18. The law provides that each child under 18 grants parents the right to a 48,000 ALL deduction from taxable income. Parents can also deduct up to 100,000 ALL per year for education expenses for children, such as school fees, books, courses, uniforms, etc. However, not all parents benefit equally — there are important limitations:
Annual income over 1.2 million ALL
If your annual income is high (over 1,200,000 ALL), you benefit only from the child deduction (48,000 ALL per child), but you do not benefit from the education expense deduction. The rationale is that those with higher incomes have already benefited intrinsically from personal tax allowances (e.g., higher-earning individuals pay lower effective tax due to lower marginal impact) and the additional education deduction has been limited for them.
Annual income over 1.2 million ALL
Parents with lower or middle annual incomes (≤ 1,200,000 ALL per year) receive both benefits: 48,000 ALL for each child, and up to 100,000 ALL in total for education expenses per year. Even if you have more than one child, the maximum amount for education remains 100,000 ALL per year (it is fixed, regardless of the number of children).
Only one parent claims the deduction
If children are under the custody of both parents, the deductions for children and education can only be claimed by one parent, not both. Specifically, the law and the instruction require that the deductions be taken by the parent with the higher annual income. This is to prevent double claiming of the same benefit. The other parent cannot declare these deductions in their own DIVA.
Children must be legally “dependent”
This means the child must be listed as dependent in the taxpayer’s official records (e.g., family certificate) and must be under 18 during the relevant fiscal year. If the child turned 18 during the year, they are not considered dependent for that year (the law clearly refers to <18). Thus, once a child turns 18, they are no longer counted for this compensation.
Documentation of education expenses
To claim the 100,000 ALL education expense deduction, you must have documents proving that you incurred the expenses for the child’s education during the relevant year. The tax administration advises: keep payment invoices for school fees, extracurricular courses, books, school transport, etc., throughout the year. Then, when completing DIVA, declare the total of these documented expenses (up to the 100,000 ALL limit). If you do not have invoices, the deduction may not be accepted in a tax audit.
Example
A family where both parents earn 1.5 million ALL per year and have one child will not benefit from the 100,000 ALL education deduction, but will benefit from the 48,000 ALL child deduction. In another family where the primary breadwinner earns 800,000 ALL per year and has two children, that parent can claim both deductions: 2 × 48,000 ALL = 96,000 ALL for the children + up to 100,000 ALL for education. This significantly reduces the tax owed for that year, possibly even resulting in a refund.
How to file the DIVA return
How is DIVA submitted? The process is carried out online. përmes portalit të tatimeve (e-filing). Filing process DIVA is filed online through the tax authority’s e-filing portal. You must identify yourself with your taxpayer identification number — for residents this is the personal ID number. The return is completed electronically by entering income in the appropriate fields (primary salary, secondary salaries, rent, dividends, interest, etc.), tax withheld during the year for each, and allowable deductions. The standard DIVA form also contains sections to declare the number of dependent children and education expenses (if eligible).
After you have completed the information, the tax system (or the calculations within the form itself) will automatically calculate the final tax. At the end, a summary is displayed where you can see:
(1) The total tax calculated on the basis of the declared income.
(2) The tax already paid during the year (through withholding at source on salary, rent, etc.).
(3) The final result, which may be an amount payable or a credit balance eligible for refund.
If the result shows a tax payable, this amount must be paid by the legal deadline (31 March of the following year). If a refundable amount results, the taxpayer has the right to request the refund from the Tax Administration within three months. The refunded amount is generally transferred to the bank account declared by the taxpayer.
Personal Status Declaration
As part of the new tax relief framework, the Tax Administration has introduced the Personal Status Declaration. This declaration provides the employer with information about the employee’s personal circumstances (for example, whether the employee has dependent children or multiple employment), so that monthly salary tax can be calculated correctly throughout the year. By submitting this declaration to the employer, certain personal deductions may be applied on a monthly basis, reducing differences at year-end. However, deductions related to dependent children and education expenses are mainly applied through the annual return (DIVA).
Read also Agjenti i Listëpagesës dhe Deklarata mbi Statusin Personal: Çfarë duhet të dini?
Submission and confirmation of the return
After completing the DIVA return online, it is submitted electronically, and the system generates a submission confirmation. This confirmation should be saved (printed or stored electronically), as it serves as proof that the return was filed within the legal deadline. The Tax Administration may subsequently verify the submitted return. If all information is correct, the return is considered finalized. If inaccuracies or inconsistencies are identified, the taxpayer may be notified to make corrections, or the authorities may correct the return in specific cases. In general, when the return is completed accurately, it is confirmed without issues.
New rules applicable from 2024
The new Law No. 29/2023 has introduced a number of changes to personal income taxation, which enter into force gradually. Below are the main points to be taken into account:
Lower declaration threshold
Individuals with annual income exceeding ALL 1.2 million are now required to file the DIVA return. The previous threshold of ALL 2 million has been reduced to ALL 1.2 million, meaning that more individuals will be required to file the annual return for the first time for income earned in 2024.
New filing deadline
The deadline for filing the DIVA return is 31 March (instead of 30 April under the previous rules). For income earned in 2024 and declared in 2025, the deadline is Monday, 31 March 2025.
Declaration of previously untaxed income
Income exceeding ALL 50,000 that was not taxed at source during the year (such as rental income paid by individuals, foreign income, or income earned through online platforms) must now be declared through DIVA and taxed accordingly.
New salary tax rates (from 2025)
Until December 2024, salaries were taxed under a monthly progressive tax system. From January 2025, a new salary tax scheme enters into force: (a) 13% on annual income up to ALL 2,040,000; (b) 23% on the portion of income exceeding this threshold. This simplifies tax calculation and aims to reduce large discrepancies at year-end when filing the annual return.
Read also Deklarata Vjetore e të Ardhurave Personale për 2024: Detyrimi, Afatet dhe Rregullat e Reja
Monthly personal deductions based on salary level
The new law introduces different personal deductions based on annual salary levels: (a) up to ALL 600,000 per year – deduction of ALL 600,000; (b) ALL 600,000 to ALL 720,000 – deduction of ALL 420,000; (c) above ALL 720,000 – deduction of ALL 360,000. When applied monthly, these correspond to deductions of ALL 50,000, ALL 35,000, or ALL 30,000 per month, respectively. These deductions are applied by the Payroll Agent (the employer) based on the employee’s Personal Status Declaration.
New deductions for children and education
From income year 2025 onward, the new law allows individuals to benefit from tax deductions for dependent children and education expenses, as explained above. These measures aim to reduce the tax burden for families with children.
If you are an individual who meets the relevant criteria, make sure to take advantage of these new rules. Not only will you pay the correct amount of tax, but you may also achieve significant savings through the available deductions, provided that you declare accurately and submit the required documentation within the prescribed deadlines.
Frequently Asked Questions (FAQ)
DIVA duhet dorëzuar detyrimisht nga ata që kanë mbi 1.2 mln lekë në vit nga të gjitha të ardhurat, ata me më shumë se një punëdhënës, dhe ata me të ardhura të patatueshme gjatë vitit mbi 50 mijë lekë. Pra, nëse ke pasur vetëm një punëdhe paga jote bruto vjetore është ≤ 1.2 mln lekë, ligjërisht nuk je i detyruar të deklarosh – por: nëse ke fëmijë dhe dëshiron të përfitosh rimbursimin tatimor për ta, ke të drejtë të deklarosh vullnetarisht për të marrë atë lehtësi. Ligji s’të ndalon të dorëzosh DIVA-n edhe sikur të ardhurat të jenë nën prag, nëse ke një arsye për ta bërë (p.sh. kërkon zbritjen e fëmijëve dhe shkollës). Në fakt, administrata tatimore inkurajon që çdo individ me mbi 100,000 lekë në muaj ose më shumë se një burim të deklarojë, për të qenë në rregull dhe për të përfituar nga zbritjet.
Thjesht duke deklaruar në DIVA. Punëdhënësi gjatë vitit nuk ka si t’i dijë benefitet e tua familjare (përveç nëse ke plotësuar tek ai deklaratën e statusit personal). Në deklaratën vjetore, ti do të shënosh numrin e fëmijëve në ngarkim dhe shumën e shpenzimeve arsimore. Nëse je brenda kushteve ligjore (fëmijë <18 vjeç, ti je prindi me të ardhura më të larta, etj.), sistemi i tatimeve do ta llogarisë automatikisht zbritjen për secilin fëmijë (48 mijë lekë) dhe shpenzimet (deri 100 mijë lekë). Kjo do të ulë bazën tatimore mbi të cilën llogaritet tatimi yt vjetor. Si pasojë, del që ke paguar disi më shumë tatim gjatë vitit. Diferenca midis tatimit të paguar dhe tatimit final kthehet si rimbursim për ty. Pra, nuk duhet ndonjë veprim i veçantë gjatë vitit – mjafton të mos harrosh t’i deklarosh këto zbritje në fund.
Për vetë fëmijët (48 mijë lekë secili) nuk ke dokument financiar – mjafton certifikata familjare që provon që janë fëmijët e tu në ngarkim (këtë administrata e verifikon lehtë në regjistrin civil). Për shpenzimet arsimore (100 mijë lekë), duhet të ruash faturat ose vërtetimet e pagesave që ke kryer: p.sh. faturën e shkollës private, ose mandatet e pagesave për kurse jashtëshkollore, faturat e librave dhe mjeteve mësimore, etj. Kur plotëson deklaratën, nuk do t’i ngarkosh ato fatura, por duhet t’i kesh të ruajtura. Tatimet kanë të drejtë t’i kërkojnë për kontroll deri disa vite më pas. Pra, nëse kërkon zbritjen, sigurohu që shpenzimi të jetë i dokumentuar dhe i ligjshëm.
Jo. Për çdo fëmijë në ngarkim, zbritja prej 48,000 lekë (dhe shpenzimet e arsimit) jepet vetëm një herë në vit dhe vetëm nga njëri prind. Zakonisht, deklaron dhe përfiton ai prind që ka paguar më shumë tatim gjatë vitit (pra, me të ardhura më të larta), që efekti i zbritjes të jetë maksimal. Prindi tjetër thjesht plotëson DIVA-n e vet pa këto zbritje (ose mund të mos ketë fare detyrim të deklarojë, varet nga të ardhurat e tij). Kjo është e rëndësishme: koordinohuni në familje që të mos e deklaroni dy herë të njëjtin fëmijë, se do refuzohet nga sistemi për dublim.
Për fat të keq, jo. Ligji e formulon kriterin thjesht si “fëmijë nën 18 vjeç”, duke nënkuptuar që për vitin fiskal që po deklaron, fëmija duhet të ketë qenë i mitur gjatë gjithë vitit (deri më 31 dhjetor). Edhe udhëzimi nuk jep zbritje të pjesshme mujore; është konceptuar si një shumë vjetore fikse. Kështu që sapo fëmija mbush 18 vjeç brenda atij viti, ai vit nuk llogaritet për kompensim. (Nëse ke fëmijë student mbi 18 vjeç, për ta aktualisht nuk ka zbritje specifike në këtë ligj.)
Po, pa dyshim! Edhe pse ligji s’të detyron, nëse ke paguar tatim mbi pagën gjatë vitit, ti mund të kthesh një pjesë të atij tatimi mbrapsht duke dorëzuar deklaratën dhe duke përfituar zbritjet. Në rastin tënd: me 800 mijë lekë në vit (për 2025 e tutje), paga jote ka pasur rreth 360 mijë lekë përjashtim personal dhe pjesa 440 mijë është tatuar me 13%, dmth ke paguar rreth 57,200 lekë tatim. Nëse deklaron një fëmijë dhe 100 mijë lekë shpenzime arsimore, baza e tatueshme bie ndjeshëm (dmth 800k – 360k – 48k – 100k = 292k) dhe tatimi i duhur del afro 0. Do të rimbursohesh për pjesën dërrmuese të atyre ~57 mijë lekëve tatim të paguar. Në të kundërt, po të mos deklarosh, i humbet këto para. Pra, edhe kur s’është detyrim, deklarimi vullnetar është në interesin tënd financiar në këtë rast.
Pas dorëzimit të deklaratës brenda 31 marsit (fjala vjen të 2026-ës për të ardhurat 2025), nëse rezulton me tatim të tepër paguar, duhet të bësh një kërkesë zyrtare për rimbursim tek Drejtoria e Tatimeve. Është një procedurë standarde (mund të bëhet online nëpërmjet portalit e-tatime). Tatimet kanë afat deri 90 ditë të shqyrtojnë kërkesën. Zakonisht, nëse gjithçka është në rregull, ata e miratojnë dhe kryejnë transferimin e shumës në llogarinë bankare që ke deklaruar. Koha e pritjes mund të jetë disa javë; rëndësi ka që t’i ndjekësh udhëzimet (p.sh. mund të kërkojnë konfirmimin e IBAN-it të llogarisë tënde bankare). Nëse ke detyrime tatimore të papaguara nga vite të mëparshme, mund të ndodhë që, në vend t’i marrësh në bankë, shuma e rimbursimit neto të përdoret për të shlyer ato detyrime – por këtë do ta shihje në komunikimin me tatimet.
Nëse ende është brenda afatit (deri më 31 mars), mund ta rihapësh deklaratën dhe ta korrigjosh para dorëzimit final. Pas afatit, ke ende një mundësi: mund të dorëzosh një deklaratë të korrigjuar (ose shtesë) pas afatit. Kjo do të rregullojë shifrat, por ki parasysh se nuk të shpëton nga gjoba e vonesës nëse je pas 31 marsit. Sidoqoftë, është më mirë të korrigjosh gabimet sesa t’i lësh, sepse deklarimi i pasaktë mund të sjellë telashe më vonë (p.sh. në rast kontrolli). Për të korrigjuar, mund të përdorësh përsëri portalin online – DIVA e lejon versionin “deklaratë e rishikuar”. Në raste komplekse, mund të kontaktoni zyrën tatimore për sqarime.
Jo, nuk është e thënë. Shumë individë thjesht do paguajnë më pak tatim gjatë vitit (ose në momentin e deklarimit) falë zbritjeve, por jo domosdoshmërisht do kenë para për të marrë mbrapsht. Rimbursimi ndodh kur tatimi i paguar ndër vit tejkalon tatimin përfundimtar të llogaritur. Disa mund të dalin zero-zero (as për të paguar, as për të marrë). Disa që kanë pasur pak mbajtje tatimi gjatë vitit e ndërkohë kanë edhe detyrime të tjera mund të dalin ende me pagesë pavarësisht zbritjeve (thjesht shumë më e vogël). Skema synon kryesisht të ndihmojë familjet të paguajnë më pak tatim në total, dhe në disa raste këto para të tepërta kthehen fizikisht te familjet. Sipas parashikimeve, familjet me paga mesatare do jenë përfituese kryesore të rimbursimeve, kurse familjet me paga shumë të larta thjesht do paguajnë pak më pak tatim, por s’do kenë rimbursime pasi gjatë vitit atyre u mbahet tatimi i llogaritur me formulën e re tashmë të reduktuar.
What happens if I do not submit the return at all?
As mentioned, failure to submit the return results in an administrative fine of ALL 3,000. In addition, the tax authorities may perform a tax assessment based on the information available to them and determine the tax liability that you should have paid. If this liability is not settled, it will increase with interest for each day of delay until it is paid. Furthermore, failure to submit the return may be considered a red flag in the system—in the future, when applying for a loan or for employment abroad, proof of tax compliance is often required, and an unfiled return may create complications. For this reason, it is in your interest to submit the return even if the deadline has passed—better late than never. Tax compliance awareness is increasing, and these new rules are specifically aimed at formalization, so it is advisable to avoid unpleasant situations by adhering to the deadlines.
In conclusion, the Annual Individual Income Tax Return (DIVA) is both a legal obligation and an opportunity for individual taxpayers. With the new rules in force—particularly those affecting families with children it is important to ensure accurate and timely filing, as this may result in tangible financial benefits. If you are uncertain about any aspect of the process, seeking professional advice is advisable; however, the filing itself should not be neglected. By remaining informed and proactive, you ensure that you pay only the tax legally due and, where applicable, obtain refunds for essential living expenses such as the upbringing and education of children.