Notice to taxpayers – Tax Declaration by Insurance Companies

Pursuant to Law No. 06/L-105 on Corporate Income Tax, which entered into force on 05 August 2019, the Tax Administration notifies Insurance Companies that, from this date onwards, they shall declare and pay taxes like any other legal entity.

Since the Law No. 06/L-105 on Corporate Income Tax has entered into force in the middle of the year, the Insurance Companies shall declare and pay taxes as follows:

  • For the period from 01.01.2019 – 04.08.2019, they shall declare and pay according to the Law No. 05/L-029, while
  • For the period from 05.08.201 onwards, they shall declare and pay according to the Law No. 06/L-105.

Thus, from the date of entry into force of the new Law on Corporate Income Tax, the Insurance Companies shall declare and pay tax based on real income, including advance instalment for Q3/2019. The year 2019, namely Q3/2019 and Q4/2019 will be considered as the first year of doing business in real income taxation, where incomes and expenses for the period from 05.08.2019 to 31.12.2019 shall be foreseen and the calculated tax shall be divided by two and the advance instalments shall be sent.

In the statement form “QS-Quarterly Advance Payment Statement for Large Corporations”, for the period Q3/2019, in the section [16] – Quarterly Gross Premiums, the income belonging to the period 01.07.2019 – 04.08.2019 will be reported, while in the section [8] – Projected income for the tax period divided by 4, the projected income for the period 05.08.2019 – 31.12.2019 divided by two will be reported.

 

Tax Administration of Kosovo

Shukrije Shabani