Kosovo: Kosovo ratifies tax treaty with Austria

International Tax Review is part of Legal Benchmarking Limited, 1-2 Paris Garden, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Kosovo: Kosovo ratifies tax treaty with Austria

Sponsored by

Eurofast Albania

On June 8 2018, Kosovo and Austria signed the Convention for Elimination of Double Taxation with the purpose of developing their economic relationship and enhancing their co-operation in tax matters. On July 27 2018, Kosovo ratified the treaty; thus it will be effective from next year.

The convention will be applied to income tax and corporate tax in Austria and to personal income tax and corporate income tax in Kosovo.

According to the treaty, construction and installation projects in progress for more than 12 months, and consultancy services provided through personnel engaged for such purposes in progress for more than six months, in a 12-month period will be considered as constituting a permanent establishment.

The treaty defines a maximum withholding tax on dividends at the rate of 15%. Interest will be taxed at 10% while royalties will only be taxed in the state where the beneficial owner is resident.

As regards the actual elimination of double taxation, both countries will allow deduction from taxes in the amount of tax paid in the other state.

The convention is expected to provide the opportunity to strengthen the Kosovo economy and legal framework and to attract more high-profile Austrian foreign investment into Kosovo. We advise legal entities in both Kosovo and Austria that are trading with the other country to seek professional advice as regards the implications of the new treaty.

more across site & shared bottom lb ros

More from across our site

ITR’s data has highlighted the US firm’s ambition to become America’s ‘premier’ tax player via a concerted partner recruitment strategy
Jaap Zwaan’s arrival continues a recent streak of A&M Tax investing in the region; in other news, the US and Japan struck a deal that significantly lowered tariff rates
In a world where international tax concepts rely on human activity, Leonard Wagenaar poses existential questions about the future of such ideas when AI is ever-present
France v Axa provides a practical illustration of how the burden of proof is applied in TP matters under French law, ITR also heard
In an exclusive interview with ITR, Ian Gary calls for a central public CbCR database and bemoans the US’s lack of involvement in international tax transparency
Reckitt Benckiser is to divest its Essential Home business, which includes more than 70 brands, to private equity firm Advent International
In the first of a new series of weekly opinion pieces, ITR Editor Tom Baker reflects on the OECD’s attempts to sanitise the US’s brazen pillar two negotiations
The threat of 50% tariffs on Brazilian goods coincides with new Brazilian legal powers to adopt retaliatory economic measures, local experts tell ITR
The country’s chancellor appears to have backtracked from previous pillar two scepticism; in other news, Donald Trump threatened Russia with 100% tariffs
In its latest G20 update, the OECD also revealed tense discussions with the US where the ‘significant threat’ of Section 899 was highlighted
Gift this article