From contracts with educational institutions to receipts for foreign language courses, the tax administration has clarified which documents must be kept to justify education expenses for children unde

Starting from March 2026, parents with an annual gross income of less than 1.2 million ALL will be recognized up to 100,000 ALL per year in deductible expenses for their children’s education. Regardless of the number of children, the maximum deductible amount from total annual income will be 100,000 ALL.

Through the section “Register of Requests and Responses 2025,” the Tax Administration explained that these expenses will be recognized through the completion of the DIVA (Annual Personal Income Declaration). For incomes earned in 2025, the declaration must be submitted in March 2026. Families must document their expenses with contracts from educational institutions or receipts for foreign language courses.

Law no. 29/2023 “On Income Tax,” as amended, Article 22 “Deductions from the Tax Base,” paragraph 2, specifies that taxpayers with taxable annual income from employment and/or business below 1,200,000 ALL may deduct, in addition to individual amounts defined in paragraph 1 of this article, current education expenses for dependent children, up to a maximum of 100,000 ALL. The deduction must be claimed by the family member with the highest annual taxable income via the annual declaration.

The required documents that justify the declaration in the DIVA are determined in point 23.1 of Instruction no. 26, dated 08.09.2023 “On Income Tax,” as amended. These include contracts with educational institutions and payment receipts for children’s education or foreign language courses.

The recognition of such education expenses for children under 18 will result in compensation through a recalculation of the tax. For families with annual gross income under 1.2 million ALL, the taxable base will be reduced by 100,000 ALL, which lowers the total taxable income declared in DIVA, and thus reduces the tax owed.

Since the income tax for 2025 will already have been paid, parents will benefit from a refund or compensation equal to the difference created after the recalculation. This excess amount can be requested for reimbursement from the tax authorities within 3 months after submitting the request.

The DIVA for 2025 income must be completed by March 31, 2026, while a new instruction from the Ministry of Finance is expected to outline the detailed procedures.

“KORÇA BOOM”