The proposed amendments to Albania’s sponsorship law aim to encourage businesses to fund sports, arts and cultural activities through tax incentives, Minister of Tourism, Culture and Sports Blendi Gonxhja said today.

Under the proposed scheme, businesses could deduct up to 30% of their corporate income tax through sponsorships of activities and events in these three strategic sectors.

Gonxhja said funding such events would benefit not only sports, arts and culture but also the wider economy. He added that investment in these sectors could reduce public spending on healthcare, security and social services.

“When we invest in events and activities, whether national or international, covering sports, active lifestyles, arts, culture, creativity and social life, we also reduce healthcare costs, security and public order costs, as well as the costs of social problems. This is a model that works in countries around the world,” he said.

The minister added that every lek invested in these events could generate two to three lek in economic activity, bringing in tax revenue, income and tourists, while supporting hotels and other businesses.

For the next budget year, the government has set a ceiling of more than 22 million euros, or around 2 billion lek, for the scheme.

Gonxhja said the initiative would allow companies to choose which activities they want to support, based on promotional goals, corporate social responsibility or personal interests.

To qualify for the tax incentive, businesses must submit the relevant invoices and a certified sponsorship agreement for the activity.

Under the scheme, companies would pay 70% of their corporate income tax, while the remaining 30% could be covered through documented sponsorships of competitions, events, concerts, exhibitions, festivals and other activities, Gonxhja explained.

/a.c/