Kosovo

The tax system of the Republic of Kosovo consists of tax treaties, tax laws, administrative instructions, regulations, individual and public rulings, decisions, and other official documents pertaining to the application of the CIT provisions.

The CIT system in Kosovo is based on the principle of worldwide taxation.

Taxpayers subject to CIT are the following:

• Corporations and other legal persons.
• Business organisations operating with public/state-owned assets.
• Non-resident persons with a permanent establishment (PE) in Kosovo.

Resident taxpayers are generally subject to tax on foreign and Kosovo-source income, whereas non-resident taxpayers are generally subject to tax only on their Kosovo-source income.

The CIT rate is 10%.

Taxpayers whose gross annual income does not exceed EUR 30,000 are not subject to CIT but have to file quarterly payments of tax on gross receipts, as follows:

• 3% of gross income received from trade, transport, agricultural, or similar activities (subject to a minimum payment of EUR 37.50).
• 9% of gross income for the quarter from services, professional, vocational, entertainment, or similar activities (subject to a minimum payment of EUR 37.50).
• 10% of gross rent income for the quarter.