On December 7, 2020, new Law no. 07/L-016 on Economic Recovery – COVID-19 (“the Law”) has entered into force. The purpose behind this Law is to alleviate the economic consequences created in the country and to provide a legal basis that helps entities that were most affected by the COVID-19.
All provisions of the Law will remain into force until December 31, 2021, except for provisions on Value Added Tax (VAT) (on raw materials) and the Kosovo Pension Savings Trust, which will remain into force until December 31, 2028.
In addition, new Public Explanatory Decision no. 01/2020 (“the Decision”) was published by the Tax Administration of Kosovo (TAK) on December 11, 2020, on VAT exemptions/reductions, Personal Income Tax on withdrawals from the Pension Fund, and reliefs from interest on tax liabilities.
The publication below summarizes some of the key changes resulting from this Law and Decision.
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