Kosovo legal and accounting and tax considerations in 2024

1. Corporate tax in Kosovo is imposed at a standard rate of 10%. All legal entities must register with the Kosovo Tax Administration and submit annual tax returns before the 1^st of April of every year;
2. Capital gains tax is applicable in Kosovo at a standard rate of 10% on all net taxable income;
3. The Value Added Tax (VAT) is levied in Kosovo at a standard rate of 16%. Companies with annual turnovers above €50,000 are required by law to register for VAT and file monthly returns by the 1^st of the following month;
4. A 10% withholding tax is applicable on i) dividends ii) interests and iii) royalties paid to both resident and non-resident companies in Kosovo;
5. A 9% withholding tax is applicable on income from rent payments for both resident and non-resident companies;
6. Legal entities in Kosovo with an annual gross income above €100 million are subject to a surcharge tax of 30% of their yearly net profits;
7. Employers in Kosovo are required by law to submit a monthly social security contribution of 5% of their employees’ gross salary;
8. Business losses in Kosovo can be carried forward for a period of 7 years, however carryback is not allowed;
9. Kosovo has so far only signed 2 double taxation avoidance treaties with Albania and Macedonia;
10. Healy Consultants will assist the Client with i) documenting and implementing accounting procedures ii) implementing financial accounting software iii) preparing financial accounting records and iv) preparing forecasts, budgets and performing sensitivity analysis;
11. It is important our Clients’ are aware of their personal and corporate tax obligations in their country of residence and domicile; and they will fulfill those obligations annually. Let us know if you need Healy Consultants’ help to clarify your annual reporting obligations.