The Republic of Kosovo is currently implementing a national economic reform, and has recently introduced a new fiscal package that entered into force on the September 1st, 2015. The new fiscal package included a decrease of VAT of 16 percent to 8 percent for necessity goods and a removal of the customs tax of 10 percent for medicines, oils and gases. A reduction of the VAT threshold from 50 thousand to 30 thousand Euros will integrate approximately 1800 businesses in the VAT regime.

 

Tax Tax rate
Corporate Income Tax Annual income €0-€5.000:

€37,5 / quarter

Annual income €5.001-€50.000:

3-10%

Annual income + €50.000:

10%

Personal Income Tax Progressive, up to max. 10%
Value Added Tax (VAT) Standard rate 18% – reduced rate 8%*
Property Tax 0.05-0.15%**
Tax on Dividends 0%

 

*On necessity goods, such as bread, salt, oil, water supply and electricity. VAT will also no longer be applied on the production line and information technology.

**Dependent on municipality. Valid for residential property, commercial property, industrial property, agricultural property, immovable abandoned property and uninhabited buildings.

 

Sources

Kosovo Central Bank

Kosovo Investment and Enterprise Support Agency