There is no compensation of 480 or 1000 euros! There will be a tax recalculation. Whoever ends up with a credit surplus (overpaid tax) will be refunded the difference in the lek paid for tax, but only if they make a request to the regional tax authorities.
According to the e-Tax system, after January 22, 2026, the generation for completing the Individual Income Tax Declaration (DIVA) for the year 2025 will begin, where for the first time a tax deduction will be applied for taxpayers with dependent children under 18 years of age. The deadline for completing the declaration is until March 31, 2026.
The deduction of 48,000 lek or 100,000 lek for parents of children and for education expenses is not a direct compensation. The compensation will be calculated as the difference between the new tax (after applying the deductions) and the tax paid during 2025.
The Law "On Income Tax" determines that the values of 48 thousand lek or 100 thousand lek (as the case may be) will be deducted from the taxable base, and the compensation will be calculated as a result of the difference between the new tax (after deductions for expenses have been made according to the income level of individuals) and the tax paid in 2025.
So, if the individual ends up with overpaid tax, after deducting expenses, he or she will request a refund of the excess amount through a request to the regional tax directorates.
The Tax Administration explained to Monitor that relevant instructions are being drafted with the procedures for completing the declaration, the documentation needed, and how requests will be made to regional tax directorates.
The deduction of expenses in the amount of 48 thousand lek or about 480 euros from the total annual gross income will benefit all individuals regardless of income level, if they have dependent children up to 18 years of age. Meanwhile, the deduction of expenses with a maximum value of up to 100 thousand lek or about 1,000 euros for children's education will be benefited if the declared annual gross income is up to 1.2 million lek.
One of the parents with children under 18, that is, the one with the highest income, will have 48 thousand lek deducted from the tax paid on their salary this year when they complete their Individual Personal Income Tax Declaration.
If the gross annual income of individual A is 150 thousand lek or 1.8 million lek per year.
The tax paid each month is:
Up to 30,000 lek - tax 0
Part 30,001–130,000 (130,000 − 30,000) × 13% = 100,000 × 13% = 13,000 lek
The part above 130,000 → (150,000 − 130,000) × 23% = 20,000 × 23% = 4,600 lek
The monthly tax paid is 17,600 lek. The annual tax is 211,200 lek.
The individual has a child aged 7. So the number of people under 18 in the declarant's care is 1.
To begin with, this individual's annual income is over 1.2 million lek. He is automatically required to complete an Individual Income Tax Return. With the entry into force of the deduction for child expenses, expenses of 48 thousand lek will be deducted from this individual's total gross income.
Since the declared income is over 1.2 million lek, he will not benefit from the deduction of 100 thousand lek for education expenses.
Recalculated tax after deducting expenses:
Monthly income after deducting expenses of 48 thousand lek will be 146 thousand lek or about 1.7 million lek per year.
Up to 30 thousand lek, the tax is zero
Part 30,001 – 130,000 (130,000 − 30,000) × 13% = 100,000 × 13% = 13,000
Part Over 130,000 (146,000 − 130,000) × 23% = 16,000 × 23% = 3,680
Recalculated monthly tax = 13,000 + 3,680 = 16,680 lek or 200,160 lek per year.
Tax paid during the year (without deductions) = 211,200 lek
Credit balance – 211,200 lek tax paid during 2025 -200,160 lek recalculated tax = 11,040 lek
This is the amount that the individual can request for reimbursement after completing the DIVA.
The request will be submitted within 3 months of completing the DIVA, to the regional tax directorates.
Tax calculation after deducting expenses of about 1000 euros for education
Also, from 2026, parents with an annual income of no more than 1.2 million lek per year will also benefit from a discount on their children's education expenses of up to 100 thousand lek.
So, if you earn less than 100,000 lek (or about 1,000 euros) per month, you can benefit from up to 100,000 lek tax deductions through the receipts you have saved for your child's education expenses. You also receive this deduction after completing the DIVA.
Example: Individual X has an income from employment of 70,000 lek per month or 840,000 lek per year.
The tax paid each month is (70,000 – 30,000)*13% = 5,200 lek and 62,400 lek per year. To benefit from the deductions for children's education, the individual must complete and submit the personal income tax return by March 31, 2026.
The maximum amount that can be deducted for education is 100,000 lek regardless of the number of children under 18 years of age. (840,000 – 100,000)/12 = 61,667 lek/month. Tax 4,117 lek (annual 49,400 lek).
The individual will result in an Individual Income Tax Return with a credit balance of 13,000 lek (rounded).
This credit status will be requested within a period of 3 months through a request to the Regional Tax Directorates.
Taken from Monitor
