From 16 to 17 June 2017, in Bečići, took place the Regional Summit themed “Regional Financial Stability in the new Global Environment” for Governors, Ministers of Finance and Tax Administration Directors. Representatives from regional countries such as: Kosovo, Montenegro, Albania, Croatia, Bosnia and Herzegovina, Serbia and Macedonia, participated in this Summit.
“REFORM OF TAX ADMINISTRATION AND FIGHT AGAINST GRAY ECONOMY” was the topic discussed during the panel with Tax Administration Directors, whereby Tax Administration General Director, Mr. Sakip Imeri, was amongst panellists. At this summit were presented the achievements of TAK in terms of tax compliance, developments between two Summits in combating the informal economy phenomena as one of the key risks of fair competition in business.
Kosovo’s tax system is assessed as relatively simple, with low tax rates, a state with fiscal policies aimed at promoting investment and domestic production, and also creating an attractive environment for foreign investment.
In terms of financial stability, TAK has seen an increase in tax compliance and a positive revenue trend as a result of a partnership with Taxpayers, the creation of facilities for regular TPs and the fight against TPs that make tax evasion.
In order to implement the TAK mission, identification of tax compliance risks, operational risk management plans have been developed and allocation of resources for their treatment has been tailored.
In particular we developed:
– Tools and software applications in support of functional units in TAK (managerial reporting, risk analysis for selection of TPs inspection, tax assessments and audits, etc.),
- E-filing of all tax;
- Book of purchase and sale,
- Claims for Refund,
- Equipment with electronic tax certificate for legal persons and businesses,
- Administration of fiscal coupons envelopes enabling interactive communication between citizens and the Tax Administration.
All these and other developments have been evaluated by International Institutions (IMF, WB, etc.). In the World Bank’s “Doing Business” Report, respectively the “Tax Payments” Indicator ranks Kosovo as 43rd, with an increase of 34 positions (from 74th to 43rd).
Progress has also been made in the field of inter-institutional and regional cooperation, and broader exchange of experiences in the fight against all forms of gray economy:
- Extended cooperation with Customs and Kosovo Police;
- Exchange of Information based on Agreements on Elimination of Double Taxation (10 AEDTs in effect and 3 negotiated);
- Regional cooperation in the fight against the informal economy (exchange of information, joint training, study visits, etc.) with Albania, Montenegro, Macedonia, Croatia, Slovenia, Estonia, etc..
Meanwhile, in the aspirations of Kosovo towards EU membership, the Stabilization and Association Agreement (SAA) in the field of taxation requires harmonization of tax legislation. SAA for Kosovo covers the prohibition of fiscal discrimination, fiscal nature tariffs, the development of Kosovo in the field of taxation and measures aimed at further reforming the fiscal system in Kosovo and the restructuring of the tax administration in order to ensure the efficiency in collecting taxes and fiscal fraud.
TAK continues the process of further refinement of services, including modern e-tax services and human capacity building, policy development, programs and TP services; Increased communication (Publication of novelties and other changes through various electronic channels, seminars with taxpayers, etc.), transparency and efficient services for taxpayers in cooperation with stakeholders (Chambers of Commerce, Professional Associations etc..).
Future goals for TAK have been defined in these projects:
- New Information Technology System;
- Full automation of processes;
- Full inter-institutional integration;
- Further digitization of tax services;
- Upgrade of Business Fiscal System (online reporting system from Fiscal devices), including games of chance;
This summit is a great opportunity for sharing good experiences and creating a dialogue to combat negative phenomena in taxation.