Personal Income Tax
Tax Administration of Kosovo (“TAK”), has the status of an Executive Agency, which functions with full operational autonomy within the Ministry of Economy and Finance. The TAK is responsible for implementing the provisions of the Law on Tax Administration and procedures of any other applicable law in Kosovo which vests TAK with the administration of all kinds of taxes. One of these taxes is the Personal Income Tax.
This type of tax is applied on the incomes of citizens earned from salary, business, rent, interest, real estate, etc. The personal income tax rates are based on the earned salary and currently these rates are the lowest in the region and in the member states of European Union.
The tax rates are:
- 0% up to 960 euros per year
- 5% over 960 up to 3000 euros per year
- 10% between 3001 and 5400 euros per year
- 20% over 5400 euros per year