The following information is valid and applicable until December 31, 2023, following the entry into force of the new Law No. 29/2023 On Income Tax. Please browse our website for more details and updated information at: https://alprofitconsult.al/tatime/
The following expenses are recognized as deductible for reporting purposes:
1. The amount of interest paid on the loan taken out for education:
for myself
for the children and
persons in custody.
2. Medical expenses:
for myself,
for the children and
persons in custody,
for the portion not covered by mandatory health insurance, as determined by a decision of the Council of Ministers.
Exception:
Non-resident individuals are not entitled to deduct their expenses.
3. Other expenses
The total amount of deductible expenses must not exceed the total annual taxable gross income.
In the event that the declaration is filed by the individual (non-head of household), the annual medical expenses not covered by mandatory health insurance amount to 8,532 lekë, for the declarant only.
In the case of the declaration being filled out by the head of the household, the annual medical expenses for oneself or for children and dependents, for the portion not covered by mandatory health insurance, are 8,532 lekë per family member, but not more than 32,000 lekë, these amounts are determined by a decision of the Council of Ministers.
Source: General Directorate of Taxes.