Kosovo

Corporate - Withholding taxes

Last reviewed - 14 February 2020

Resident taxpayers paying rent, interest, royalties, and non-resident services shall withhold tax at the time of payment and shall transfer the amount of the tax withheld not later than the 15th day of the month following the tax period.

Taxpayers shall withhold tax at the time of payment or credit. A WHT obligation applies only when the underlying amount (e.g. rent, interest) is actually paid, not when it accrues.

WHT rates are provided below:

  • Interest and royalties: 10%.
  • Rent: 9%.
  • Services provided from non-residents: 5%.
  • Payments to non-business natural persons, farmers, recycled materials collectors, etc.: 1%.

For payments made to recipients in countries with which Kosovo has a DTT, the rates of WHT may be eliminated/reduced under the terms of the treaty.

There is no WHT on dividends, as dividends received by residents and non-residents are exempt from taxation in Kosovo.

Double tax treaties (DTTs)

Currently, Kosovo has DTTs in place with the following countries:

Recipient WHT (%)
Interest Royalties
Non-treaty 10 10
Treaty:    
Albania 10 10
Austria 10 0 (1)
Belgium 10 (2) 10
Croatia 5 5
Finland 0 (1) 10
Germany 0 (1) 10
Hungary 0 (1) 0 (1)
Luxembourg 5 0 (1)
Malta 5 0 (1)
North Macedonia 10 10
Slovenia 5 5
Switzerland 5 0 (1)
Turkey 10 10
United Arab Emirates 5 0 (1)
United Kingdom 0 (1) 0 (1)

Notes

  1. Only taxable in the state of residence.
  2. As per the DTT, it is not to exceed 15%, but the non-treaty domestic rate is 10%.