General information on taxes
Tax Administration of Kosovo (TAK)
TAK’s mission is to enhance the voluntary compliance in line with tax legislation in force, and to provide professional, transparent and effective services to taxpayers.
General information on TAXES IN KOSOVO.
Register your business > Maintain the documentation > Declare and pay your obligations voluntarily.
Tax Administration of Kosovo (TAK), as an Executive Agency with full operational autonomy, is responsible to administer the implementation of any tax type applicable by tax legislation in Republic of Kosovo.
The Tax Administration of Kosovo is responsible for the collection of central government taxes, which include:
- Value Added Tax (VAT) on domestic supplies;
- Personal Income Tax;
- Corporate Income Tax;
- Withholding Tax;
- Pension Contributions;
This document is based on relevant laws and administrative instruction in force, as:
No. Name of the law No. of the Law No. of Administrative Instruction
1. Law on Tax Administration and Procedures No. 08/L-257
2. Law on Value Added Tax – VAT No. 05/L-037 No. 03/2015; No. 06/2016
3. Law on Personal Income Tax – PIT No. 05/L-028 No. 01/2016
4. Law on amending and supplementing
the laws that determine the amount
of the benefit in the amount of the minimum
wage, procedures on setting of minimum
wage and tax rates on annual personal income No. 08/L-142 No. 01/2016
5. Law on Corporate Income Tax – CIT No. 06/L-105
No. 04/L-101
6. Law on Pension Contributions – PC No. 04/L-168 No. 05/L-116
All the aforementioned laws and administrative instructions are available in the Official Gazette of the Republic of Kosovo, at the link: https://gzk.rks-gov.net/default.aspx
Tax rates in Kosovo:
Tax Type Turnover Tax Rate
Value Added Tax – VAT Over 30,000 euro 8% and 18%
Corporate Income Tax – CIT Below real income taxation
threshhold (30,000 euro)
- Production, trade and transportation activity, etc. 3%
- Service activity 9%
Corporate Income Tax – CIT Above real income taxation 10%
threshold (> 30,000 euro)
Personal Income Tax – PIT Below real income taxation
threshhold (50,000 euro)
- Production, trade and transportation activity, etc. 3%
- Service activity 9%
Personal Income Tax – PIT Above real income taxation
threshhold (50,000 euro)
- Annual income from 0 to 3,000.00 0%
- Annual income from 3,000.01 to 5,400.00 8%
- Annual income from 5,400.01 and more 10%
Withheld tax at source on wages (monthly)
- Monthly income from 0 to 250.00 0%
- Monthly income from 250.01 – 450.00 8%
- Monthly income from 450.01 and more 10%
Rent Tax 10%
Withheld tax at source on rent 9%
Withheld tax at source on interest 10%
Withheld tax at source on property rights 10%
Withhold tax at source for specific categories Depending on business status 1% or 3%
Withheld tax at source on non-residents 5% or DTA
Tax Compliance Requirements
The persons performing economic activities, based on tax legislation, are obliged to:
- Register 2. Maintain documentation 3. Declare taxes and 4. Pay taxes
Value Added Tax
For the purpose of Value Added Tax (VAT), the taxable person is any person that is, or is required to be registered for VAT, and independently carries out an economic activity on regular or irregular manner, regardless of the purpose or the result of its economic activity.
Any person that meets all the requirements of the definition on taxable person, is required to register for VAT, if within the calendar year exceeds the turnover of thirty thousand euros (30,000€).
VAT is with two rates, the standard rate of 18% and the reduced rate of 8% on the value of imported supplies and taxable domestic supplies, the exclusion of the exempted supplies and supplies considered as exports.
A transaction is subject to VAT in Kosovo, if it is supply of goods or supply of services, rendered against the payment, within the territory of Kosovo, by a taxable person that acts as such. Also, the importation of goods is subject to VAT
VAT is differentiated into two rates, the standard rate of 18% and the reduced rate of 8%, of the value of imported supplies and taxable domestic supplies, with the exception of exempted supplies and supplies treated as exports.
A transaction is subject to VAT in Kosovo, if it is supply of goods or supply of services, rendered against the payment, within the territory of Kosovo, by a taxable person that acts as such. Also, the importation of goods is subject to VAT.
Personal Income Tax
Personal Income Tax is applicable on all income received by an individual, which is taxable under the Law on Personal Income Tax. Taxpayers are resident and non-resident natural persons, individual business enterprise, partnerships and associations, which receive or create gross income from any source, including wage, business activity, rent, lottery winnings, interest, capital gains, use of intangible property, and any other income that increases taxpayer net value.
The object of taxation for resident taxpayer is the taxable income with source in Kosovo and outside Kosovo, and for non-resident taxpayer is only the taxable income with Kosovo source.
The taxable income for a tax period is considered the deference between gross income received or accrued during the tax period and the deductions allowable with respect to such gross income.
- Gross income minus Allowable deductions = Taxable income
Taxpayers with annual gross income over 50,000€ and those who have voluntary opted to be taxed on real income, are taxed by above-mentioned rates, while taxpayers with annual gross income of 50,000€ or less, are taxed on gross income at 3% (for the activities of: trade, transport, agriculture and similar commercial activities) or 9% (for the activities of: services, professional, artisanal, entertainment and similar activities). In addition to the tax, these taxpayers (self-employed) are also obliged to pay the Pension Contribution.
Wages of employees from the primary employer are taxed according to tax rates (0%; 8% and 10%), while wages of employees from the secondary employer are taxed at 10%.
Each employed citizen of Kosovo is obliged to pay 5% of the gross salary on behalf of the Pension Contribution. Likewise, the main employer and the secondary employer for employees who are citizens of Kosovo, contribute 5% of the gross salary of the employee on behalf of the pension contribution.
Corporate Income Tax
Corporate Income Tax is applied on all taxable corporate income. Taxpayers are considered: Corporation or any other business enterprise that has the status of a legal entity according to the law in force in Kosovo; Business organization operating with assets in social or public ownership; Organization registered as a non-governmental organization; Non-resident person with a permanent unit in Kosovo.
The object of taxation for the resident taxpayer is the taxable income with source in Kosovo and outside Kosovo, while for the non-resident taxpayer it is only the taxable income with source in Kosovo.
Taxpayers with annual gross income over €30,000 and those who have voluntarily opted to be taxed on real income are taxed at the rate of 10%, while taxpayers with annual gross income of €30,000 or less are taxed on gross income at 3 % (for activities: trade, transport, agriculture and similar commercial activities) or 9% (for activities: services, professional, artisanal, entertainment and similar).
For taxpayers with annual gross income over €30,000 and those who have voluntarily opted to be taxed on real income, taxable income for a tax period is considered the difference between the gross income received or accrued during a tax period and deductions allowed in relation to such gross income.
Deadlines for declaration and payment of taxes:
No. Form name Abbreviation Deadline for declaration
1 VAT declaration and payment form TV From the 1st to the 20th of each month
2 Monthly statement of withholding tax on salaries and pension contributions WM/CM From the 1st to the 15th of each month
3 Monthly statement of withholding tax and payment of tax on interest, property rights, rent, lottery and gambling winnings and non-resident person WR From the 1st to the 15th of each month
4 Quarterly statement of rent and intangible assets IR From the 1st to the 15th of each quarter
5 Quarterly statement of tax and contributions for small individual businesses IS From the 1st to the 15th of each quarter
6 Quarterly statement of advance payment for large individual businesses IL From the 1st to the 15th of each quarter
7 Quarterly statement of tax payment for small corporations QS From the 1st to the 15th of each quarter
8 Quarterly statement of advance payment for large corporations QL From the 1st to the 15th of each quarter
9 Annual Declaration Form and payment for Personal Income Tax PD From January 1 to March 31
10 Annual Declaration Form and payment for Corporate Income Tax CD From January 1 to March 31
11 Annual Declaration Form and payment for Personal Income Tax – Individual DI From January 1 to March 31
12 Partnership Income Tax Declaration DO From January 1 to March 31
13 Request for Reimbursement/Refund KRR From the 1st to the 20th of each month or quarter
14 Purchase Book Declaration by VAT Declarants LB From the 1st to the 20th of each month
15 Sales Book Declaration by VAT Declarants LSH From the 1st to the 20th of each month
16 Purchase Book Declaration by other persons LB From the 1st to the 15th of each quarter
17 Sales Book Declaration by other persons LSH From the 1st to the 15th of each quarter
18 Declaration of Report of Purchases over 500€ RB From January 1 to March 31
19 Declaration of Financial Statements PF From January 1 to March 31
