Kosovo

Choice of business entity

Business entities that may be registered with the Business Registration Agency in Kosovo are the following:

• Personal business enterprise.
• General partnership.
• Limited partnership.
• Limited liability company.
• Joint stock company.

Apart from the above forms of establishment, foreign business organisations may also carry out economic activity in Kosovo through a branch office, upon registration with the Business Registration Agency in Kosovo.

Adoption of International Financial Reporting Standards (IFRS)

IFRS is adopted and recognised under Law No.06/L-032 on Accounting, Financial Reporting, and Audit. However, not all provisions foreseen by IFRS are recognised and allowed for tax purposes.

Intergovernmental agreements (IGAs)

Kosovo is a member of the Central European Free Trade Area (CEFTA).

The Stabilization and Association Agreement aimed at liberalizing trade with the European Union entered into force in April 2016.

The Free Trade Agreement between the Republic of Kosovo and Republic of Turkey entered into force in September 2019.

The Partnership, Trade and Cooperation Agreement between the Republic of Kosovo and the United Kingdom of Great Britain and Northern Ireland.

On 26 February 2015, the Government of the United States of America and the Government of the Republic of Kosovo signed an IGA entitled, ‘Agreement between the Government of the United States of America and the Government of the Republic of Kosovo to Improve International Tax Compliance and to Implement FATCA [Foreign Account Tax Compliance Act]’. The IGA requires, in particular, the exchange of certain information with respect to US reportable accounts on an automatic basis.

Tax information exchange agreements (TIEAs)

Specific TIEAs have not been signed with any country, except for standard information exchange provisions within existing DTTs.