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Kosovo's New Corporate Income Tax Law In Force

Thursday, August 8, 2019

Kosovo's new corporate income tax law has entered into force and is effective from January 1, 2019.

Law no. 06/L-105 on Corporate Income Tax entered into force 15 days after its publication, on July 19, 2019, in Official Gazette no. 15 of 2019.

The law is a comprehensive rewrite of the 2015 corporate income tax law – law no. 05/L-029.

Among the numerous changes, under Article 24, losses can be carried forward for four years, rather than six years in Article 23 of the previous law.

Permanent establishment provisions, contained in Article 30 of the new law, have been updated in line with the OECD's recommendations on preventing tax base erosion and profit shifting (BEPS), and notably in relation to taxpayers habitually carrying out consignment-related services on behalf of a non-resident entity.

The threshold to be taxed on a gross income basis has been reduced to EUR30,000 in Article 35 of the new law, down from EUR50,000 in the same Article of the previous law.