Kosovo

Personal deductions

Charitable contributions

Contributions made by a taxpayer in the form of donations or sponsorship for humanitarian, health, education, religious, scientific, cultural, environmental protection, and sports in accordance with the PIT law are considered as contributions given for public interest and are allowed as a deduction up to a maximum of 10% of taxable income computed before these contributions are deducted.

An additional 10% deduction may be applicable if prescribed so by other laws pertaining to sponsorships of certain activities.

A taxpayer who claims a deduction in respect of charitable contributions made during the tax period shall furnish receipts signed and stamped by the beneficiaries of the charitable contributions, confirming the purpose of those donations, the amounts of the donations, and the times when the donations were made.

A charitable contribution deduction can only be claimed by a taxpayer who pays tax on an accrual or real income basis.

Standard deductions

There are no standard deductions in Kosovo.

Personal allowances

There are no personal allowances in Kosovo.

Business deductions

Business deductions for personal business enterprises are the same as for corporations. See the Deductions section of Kosovo’s Corporate tax summary for more information.

Losses

A tax loss as defined by the PIT is the negative difference between the taxpayer’s income and expenses and allowances determined in accordance with this law.

Business tax losses for personal business enterprises are the same as for corporations. See the Deductions section of Kosovo’s Corporate tax summary for more information.