Tax Administration of Kosovo (TAK), as Enforcement Agency with full Autonomy, is responsible to administer the implementation of any tax type applicable by tax legislation in Republic of Kosovo.
The mission of TAK is to enhance the voluntary compliance in line with tax legislation in force, and to provide professional, transparent and effective services to taxpayers.
TAK is responsible to collect the following government central taxes:
- Value Added Tax (VAT) on domestic supplies;
- Personal Income Tax;
- Corporate Income Tax;
- Withholding Tax;
- Pension Contributions;
- Issuance of licenses for Game of Chance.
This document is based on relevant laws and administrative instruction in force, as:
All laws and administrative instructions are available on Official Gazette of Kosovo, on the link: http://gzk.rks-gov.net/default.aspx
Tax rates in Kosovo:
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.
Tatimi në të Ardhura Personale
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 of 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 from Kosovo and outside Kosovo source, and for non-resident taxpayer is the taxable income only 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 income.
Tax rates for Personal Income Tax:
|Tax rate||Monthly income in €||Annual income in €|
|0%||0 to 80||0 to 960|
|4%||80 to 250||960 to 3000|
|8%||250 to 450||3000 to 5400|
|10%||450 and over||5,400 and over|
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, and taxpayers with annual gross income of 50,000€ or less, are taxed with 3% on gross income (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 tax, these (self-employed) taxpayers are obliged to pay Pension Contributions, too.
The wages of employees are taxed by the primary employer under the following tax rates (0%; 4%; 8% and 10%), and the wages of employees are taxes with 10% by the secondary employer.
Any employee, the citizen of Kosovo, is obliged to pay 5% from gross income on behalf of Pension Contributions. Also, the principal and secondary employer of the employee, which is Kosovo citizen, contributes with 5% on gross wage of the employee for the pension contributions.
Corporate Income Tax
Corporate Income Tax is applicable on all taxable income of corporations. The taxpayer is considered: corporation or any other business enterprise with legal person statute under the law in force in Kosovo; The business organization that acts with socially or public owned property; The organization registered as non-governmental organization; The non-resident person with permanent establishment in Kosovo.
The object of taxation for resident taxpayer is the taxable income from Kosovo source income and foreign source income and for a non-resident taxpayer shall be taxable income from Kosovo sources.
Taxpayer with gross annual income over 50,000€ and those who have voluntary opted to be taxed on real income, are taxed with the rate of 10%, and the taxpayers with annual gross income of 50,000€ or less, are taxed with 3% on gross income (for the activities of: trade, transport, agriculture and similar commercial activities) or 9% (for the activities of: services, professional, artisanal, entertainment and similar activities).
For the taxpayers with annual gross income over 50,000€ and those who have voluntary opted to be taxed on real income, 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 income.
Deadlines for Tax Filing and Payments: