• Employment income includes salaries, bonuses, benefits, director’s fees, and termination compensation. 
• Standard deductions apply based on income level: 
  • Up to ALL 600,000: Deduction of ALL 600,000 
  • ALL 600,000 - ALL 720,000: Deduction of ALL 420,000 

• Over ALL 720,000: Deduction of ALL 360,000 
• Private pension fund contributions up to the minimum monthly salary (ALL 40,000) are deductible. 
• Annual deduction of ALL 100,000 per dependent child (<18 years old) for educational expenses, applicable if the parent's annual income is up to ALL 1,200,000. 

• If 80% or more of income comes from a single client, it is classified as employment income and taxed at 13% or 23%. 
• If 90% or more of total income is derived from fewer than three clients, it is also considered employment income. 
• Services provided only to non-resident entities without a permanent establishment (PE) in Albania are taxed as business income. 
• Entrepreneurs with a turnover of up to ALL 10 million can opt for flat-rate deductible expenses (e.g., 30% based on industry standards). Once selected, this regime cannot be changed for three years. 

Corporate Tax Rates: 

• Standard CIT rate: 15% 
• Reduced rates apply to specific industries until December 31, 2029: 
• Agrotourism: 5% 
• Agricultural cooperative societies: 5% 
• Automotive sector: 5% 
• Software development: 5% (valid until December 31, 2025)