After decades of demands from sport, and especially from football, the government has approved a draft law amending the 1994 sponsorship law. According to the official version, businesses that finance sport, art and culture will be able to benefit from direct deductions from tax liabilities, up to 30% of profit tax.
What changes in the sponsorship scheme
The draft law approved by the Council of Ministers affects the way sponsorships are treated for tax purposes. Under the new provision, companies that pay profit tax will have the right to deduct directly from their tax liability the amount sponsored for public activities in sport, art and culture, up to 30% of the previous year’s profit tax.
In practice, this means that support for a club, federation, academy or sporting event will no longer be treated only as an ordinary expense, but as an instrument that brings a direct tax benefit for the business. The draft law also includes in-kind sponsorships, with separate limits and mechanisms linked to the financial result and tax liability.
Government speaks of more money outside the budget
The news was made public by Minister Blendi Gonxhja, who presented the change as an important step for sport, art and culture. According to his announcement, the support potential could reach up to 2 billion lek per year, beyond the funds that come from the state budget.
However, this remains an expectation announced by the executive. The real effect will depend on how the law is implemented, on business interest and on the filters that will be set in the sublegal acts.
Benefits also for entities receiving sponsorships
The draft law provides that income obtained from sponsorships will be tax-exempt for the beneficiary entity. It will not be included in the financial result for classification according to tax brackets.
This scheme, if it also passes the parliamentary filter, aims to give clubs, federations and beneficiary organizations more room to use the funds without being penalized fiscally simply because they secured sponsors.
Pressure had come for years from football
The change did not come in a vacuum. The Albanian Football Federation has been among the institutions pushing this issue most strongly for years, seeking a more favorable framework for private investment in sport. At some points, basketball also joined this demand.
A turning point was marked in 2020, when the Professional League and the clubs of the Kategoria Superiore placed a functional sponsorship law at the top of their demands to the government, while also warning of a boycott of the championship. The demand was clear: fewer promises and more concrete financing instruments.
Electronic registry and right to appeal
To limit abuses, the draft law provides for mandatory documentation of sponsorships through contracts, reports on the use of funds and other financial documents. It also provides for the creation of a national electronic sponsorship registry, which according to the government should increase transparency and traceability.
If the tax administration refuses to recognize the relief, the sponsor will have 30 days to appeal to the General Directorate of Taxes, with the right to pursue other legal avenues as well. For the moment, the draft law has passed only the government stage and is expected to face parliamentary procedures.
On paper, the change aims to open a new financing channel for Albanian sport, but the real test will be in implementation and in how favoritism or the formal use of the scheme are avoided.
After a long wait and continued pressure from sport, especially football, it now remains to be seen whether the initiative will bring real investment or remain another well-packaged promise at government level.