Kosovo

Corporate - Withholding taxes

Last reviewed - 19 July 2022

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 (%)
Dividends Interest Royalties
Non-treaty - 10 10
Treaty:    
Albania 5/8 10 10
Austria 0/15 10 0
Belgium 10/15 15 10
Croatia 5/10 5 5
Finland 5/15 0 10
Germany 15 0 10
Hungary 0/5 0 0
Latvia 0/10 0/10 0/5
Luxembourg 0/10 5 0
Malta 0/10 (1) 5 0
Netherlands 0/15 0/10 0
North Macedonia 0/5 10 10
Saudi Arabia 5 5 5/10 (2)
Slovenia 5/10 5 5
Switzerland 5/15 5 0
Turkey 0/5/15 (3) 10 10
United Arab Emirates 5 5 0
United Kingdom 0/15 0 0

Notes

* DTT agreements with Czech Republic, France, Italy, Ireland and Lithuania are not yet in force.

  1. Where the dividends are paid by a company which is a resident of Malta to a resident of Kosovo who is the beneficial owner thereof, Malta tax on the gross amount of the dividends shall not exceed that chargeable on the profits out of which the dividends are paid
  2. 5% if paid for the use of, or the right to use industrial, commercial or scientific equipment; otherwise 10%.
  3. In the case of Kosovo, dividends paid by a company which is a resident of Kosovo to a resident of Turkey shall be subject to zero per cent taxation at source.