Kosovo

Corporate - Corporate residence

Last reviewed - 21 July 2021

Based on Kosovo legislation, a legal entity is considered to be resident in Kosovo if it has its head office or its place of effective management in Kosovo.

Permanent establishment (PE)

A PE is considered a fixed place of business through which the business of an enterprise is wholly or partly carried on in Kosovo for a period longer than 6 months within any 12-month period. It includes any place of management, branch, office, factory, workshop, mine, oil or gas source, quarry, or other place of exploitation of natural resources.

A PE is deemed to have been created by any building site, construction, assembling or installation project, or supervisory activity in connection therewith, but only if such site, project, or activity lasts longer than 183 days within any 12-month period.

Similarly, furnishing consultancy services for a period of 90 days or more in any 12-month period by a non-resident person triggers a PE, as well as owning immovable property by a non-resident.

For countries with which Kosovo has double tax treaties (DTTs), PE rules are as per the relevant provisions in such treaties. See the Withholding taxes section for a list of countries with which Kosovo has a DTT.