Abstract
In the early postwar years, Kosovo was faced with a destroyed economy and an inexperienced tax system and was mainly based on the experiences of other countries and not in accordance with the real situation and needs of post-war Kosovo which had to start from “zero” in many areas.The post-war tax policy in Kosovo started with the tax system in accordance with UNMIK Regulations, which were almost all copied from other countries such as from countries in transition as well as from EU Countries, therefore these regulations were inconsistent with the current situation in Kosovo.The Agency which deals with tax administration is the Tax Administration in Kosovo (TAK). From the beginning of the work of TAK, from 2000 until today, Kosovo`s tax system has been constantly adapting changes in tax laws aswell as in tax rates. The main focus of this paper is how changes affect the applicable tax rates in Kosovo and how much impact has this change on the TAK revenues. The current applicable taxes in Kosovo are: Value added tax (VAT); Personal income tax (PIT), and Corporate income tax (CIT). All these different kinds of taxes have undergone changes in their application as well as in their level of tax rates.
Highlights
Fiscal policy together with monetary policy are the two basic components of state economic policy which are used for macroeconomic purposes (Govori, 2010).The term public finance is defined as the study of how the government through rationing the use of government goods and services and funding their resource costs affects price incentives, production possibilities, and resource utilization (Hyman, 2005)
By 01/01/2005 some new laws were issued on Personal Income tax and Corporate Income tax, which have much in common but with a difference that taxpayers who declare personal income were entitled to utilize the tax rate for annual income up to 960 euros have been exempted from tax, the rate was 0%, from 960-3000 Euros, the rate
The Changing of tax rates were more significant in 2009 where there was a reduction of tax rates for Corporative income tax from 20% to 10%, and in the Personal Income tax where the net income tax rates were 0% until 960 Euros, 5% for 960-3000 Euros, 10% for 3000-500 Euros and 20% for over 5400 Euros
Summary
Fiscal policy together with monetary policy are the two basic components of state economic policy which are used for macroeconomic purposes (Govori, 2010). Taxes are the essential financial instrument of obtaining income of the state budget (Bundo, 2007). Tax is a mandatory cash award of one part of the income or assets to the state that are used for the overall coverage of public spending and without disproportionate direct service (Komoni, 2008). Taxes are the underlying financial instrument of collecting revenues, on which modern states cover the costs of their competences. From January 2009, has started to apply the new law to discount the tax rates in Kosovo. There is a decrease of the tax rates for dividends, interest, rents, lottery and other game of chance winnings, wages, business activities, the use of intangible property etc.
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
