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 threshold (30,000 euro)	10%
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:

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.

Tax rates for Personal Income Tax:

Tax rate	Monthly income	Annual income
0%	0 to 250.00	0 to 3,000.00
8%	250.01 to 450.00	3,000.01 to 5,400.00
10%	450.01 and more	5,400.01 and more

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

Source Acknowledgment:

This document incorporates information referenced from the official website of the Kosovo Tax Administration (ATK), specifically from the page titled “General Information on Taxes in Kosovo”, accessible at www.atk-ks.org. All rights and ownership of the content remain with the Kosovo Tax Administration, and the information is used here solely for informational purposes and in accordance with applicable legal and fair use principles.

https://www.atk-ks.org/en/portfolio/informata-te-pergjithshme-per-tatimet-ne-kosove/