Annual tax return in Kosovo: 31 March deadline

Every spring, by 31 March, businesses in Kosovo close out the previous tax year. Monthly returns show what happened during the year; the annual return sums it up, calculates the final tax and compares it with what has already been paid.

Who files an annual return

Who	Return	Deadline
Individual Business	Annual personal income tax return	31 March
LLC, JSC, foreign branch	Annual corporate income tax return	31 March
Partnership	Information return; partners are taxed personally	31 March
Individual with rent, foreign income or several sources	Annual personal return	31 March
Employee paid only by a primary employer	Usually no obligation

Individual Business

An Individual Business's profit is taxed as the owner's personal income, at the progressive annual rates:

up to €3,000: 0%;
from €3,000 to €5,400: 8%;
above €5,400: 10%.

A small business paying the simplified tax on turnover (3% or 9%) has already paid its taxes quarterly. Often it still has to file an annual return summarising the year's income. See Tax for small businesses.

A business keeping full accounts declares income minus deductible expenses. This is where your real tax is decided: every expense backed by an invoice lowers the base. See Tax-deductible expenses.

LLCs and other companies

Companies pay 10% corporate income tax on profit. During the year they pay quarterly instalments; the annual return calculates the final tax and:

if the instalments were lower, the difference is paid by 31 March;
if they were higher, the excess is carried forward or a refund is requested.

What you need before filing

All sales and purchase invoices for the year, reconciled with the VAT books.
The monthly returns you filed (payroll, VAT, withholding tax).
Financial statements, or at least the balance sheet and income statement. See Annual financial statements.
Year-end inventory, if you hold goods.
A list of assets and their depreciation.
Proof of the instalments paid during the year.

The most common mistakes

Leaving it to the last week. EDI gets overloaded at the end of March and there's no time to fix mistakes.
Expenses without invoices. An expense that isn't documented isn't deductible.
Personal expenses in the business. The family car or holidays are not business expenses.
Not filing when there's no profit. Even with a loss the return is filed; the loss can be carried forward to future years.

Deadlines after the annual return

After 31 March, the first quarterly instalment of the new year usually falls on 15 April. Then come 15 July, 15 October and 15 January. How monthly and quarterly returns work in EDI is explained in Filing taxes in EDI.

If you don't have an accountant yet, now is the best time to find one. See When you need an accountant. And on Kerko you can find accounting offices in your municipality.

Frequently asked questions

When is the annual tax return due?

The annual return for the previous year is filed, and any remaining tax paid, by 31 March, for both personal income tax and corporate income tax.

Does an employee on a salary have to file an annual return?

Usually not, if they only have a salary from their primary employer and tax was withheld. They must file if they also have other income, such as rent, a business or income from abroad.

What happens if I file late?

ATK fines late filing and charges interest on unpaid tax. Even if you have no tax to pay, the return must be filed.

How is the return filed?

Online through ATK's EDI system, using the business's own access or that of an authorised accountant.

This article is for information only and is not tax advice. Deadlines, forms and rates are set by ATK and tax law and can change; check atk-ks.org or with your accountant.