Corporate - Tax credits and incentives

Last reviewed - 21 July 2021

Taxpayers that purchase new heavy machinery categorised under the 10% depreciation rate group enjoy an additional one-time 10% deduction for CIT purposes. Taxpayers who benefit from tax breaks or other tax benefits shall not have the right to utilize the special deduction of 10% on new assets purchased and put into use.

Wages of persons with disabilities are exempt from employment taxes.

Foreign tax credit

Taxpayers who receive income from sources outside Kosovo and pay tax on such income in other countries are allowed the right to a tax credit for the amount of the tax paid abroad or up to the applicable Kosovo income tax rate, whichever is lower. Foreign tax credits can be claimed even if there is no DTT between Kosovo and the respective country where such income arose, subject to proper documentation.