Kosovo: flat-tax from 1 January 2009

Prishtina, KOSOVO – The earlier approved package of tax cuts in Kosovo has entered into power from 1 january 2009. The new tax system encourages foreign investors by setting the corporate tax to a flat-rate of 10%.

The Government of Kosovo has also reduced the income and salary taxes to 0 – 10 %. Monthly salaries from € 80-250 will be taxed four percent, € 250-400 – eight percent while salaries over € 450 will be taxed ten percent.

Within the same package, Kosovo has increased the VAT to 16% (earlier 15%).

It is expected that the lower income taxes and the new flat-rate corporate tax will support the private sector and further encourage foreign investments in Kosovo.