Tax Law on Corporate Income facilitates donations from businesses in Kosovo
Prishtina, 12 April 2017-
We are happy to share with you the news of the approval of the law no. 05 / L-029 of Taxes on Income Corporations. This draft law will determine the conditions and regulate corporate facilities in their tax obligations.
Under this law, the contributions made by taxpayers in the form of donations and sponsorships to humanitarian and medical purposes are considered as contributions in the public interest and taxpayers are provided with a discounts up to 10% in tax. As an example, if the business has a taxable income of Euro 10,000 and based on these incomes pays income tax on profit of Euro1,000. Business in question can give a donation value of Euro 1,000 (10% to Euro 10,000) and then the business pays income tax only Euro 900 (10,000 – 1,000= 9,000*10%).
This draft law regulates relations, conditions and level of financing facilities through allowed deductions for natural and legal persons, who by free will, sponsor or become donors in these particular areas of public interest, such is the humanitarian foundation “Action for Mothers and Children ‘.