The Tax Administration of Kosovo (TAK) has announced that it has begun implementing the Agreement between the Republic of Kosovo and the Republic of Italy on the elimination of double taxation and the prevention of tax evasion and avoidance in the field of income tax.
According to TAK, this agreement aims to advance economic relations between the two countries and strengthen cooperation on tax matters. It allows for the elimination of the double tax burden for individuals and businesses, contributing to the creation of a more favorable environment for investment and the development of economic activities.
“At the same time, the agreement also addresses the prevention of tax evasion and avoidance, limiting the use of schemes that lead to underreporting or incorrect reporting of income,” the agency’s announcement reads, as reported by KosovaPress.TAK notes that within the framework of this agreement, the persons covered and the way their income is treated for tax purposes are clearly defined.
“The agreement applies to residents of one or both contracting states and covers income derived through various entities or arrangements, in accordance with the relevant legislation of each state,” the announcement states. Furthermore, according to TAK, the agreement ensures the respect of the tax rights of the contracting states by specifying cases where the benefits of this agreement can be applied.The Tax Administration says that implementing this agreement represents an important step toward strengthening economic cooperation between Kosovo and Italy, as well as increasing legal certainty for investors and businesses operating in both countries.
Currently, the Republic of Kosovo has a total of 22 agreements in force for the elimination of double taxation with various countries.
