The Kosovo Tax Administration has announced that it has begun implementing the agreement between the Republic of Kosovo and the Republic of Italy for the elimination of double taxation and the prevention of tax evasion and avoidance in the field of income taxation.
According to ATK, this agreement aims to advance economic relations between the two countries and strengthen cooperation on tax matters.
Through this agreement, the double taxation burden for individuals and businesses can be eliminated, 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 non-declaration or inaccurate declaration of income,” the agency stated.
ATK notes that under this agreement, the covered persons and the treatment of income 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 said.
Furthermore, according to ATK, the agreement ensures respect for the tax rights of the contracting states by specifying the cases in which the benefits of the agreement may be applied.
The Tax Administration states that the implementation of 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 with different countries for the elimination of double taxation.
