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June 19, 2020
Rishikim i vitit 2025
June 19, 20202025 Review
Compliance, Accuracy, and New Financial Readiness Standard
As the end of the fiscal year approaches, year-end processes have changed significantly since
the last legal amendments in 2024. New tax administration procedures have increased
expectations from regulators and lenders, while the dynamics of the global economy have
transformed year-end tasks from an annual routine into a moment of accountability.
Kosovo-based businesses are now exposed to opportunities more than ever; therefore, a new
standard for accuracy is set.
According to the Central Bank of Kosovo and the World Bank, Kosovo’s economy is showing
promising growth with steady progress - dominated by high consumption levels and a ‘BB’
sovereign credit rating, which reflects the country’s financial standing and attracts interest from
foreign investors. However, these advancements have led to new regulatory expectations.
Kosovo’s regulators expect more than compliance; they ask for accuracy, transparency, and the
efficient adoption of new procedures.
Amendments to Law No. 08/L-257 have changed how companies are required to handle
reporting. Kosovo’s Tax Administration (TAK) has reduced the room for error, with a shorter
correction window, extended audit exposure, more structured penalties, and strict refund review
timelines. Financial statements are expected to be accurate upon submission, not after several
rounds of adjustments.
For many companies, this regulatory pressure exposes essential issues like late reconciliation,
documentation not in line with tax claims, inconsistent internal processes, and uncertainty about
who is responsible for year-end workflows. These issues, once ignored, now pose compliance
risks under the updated TAK internal framework.
Year-end reporting is more than an administrative deadline; it is a reflection of the efficiency of a
company’s governance. Companies that successfully turn in accurate and timely year-end
reports must use this momentum as an opportunity to strengthen their credibility with regulators,
banks, partners, and potential investors.
Since the last legal amendments, Baker Tilly Kosovo has been focused on helping clients adopt
a new mindset. New reconciliation routines that identify issues early, new documentation
alignment strategies, and year-long internal frameworks are some of the strategies
implemented. For more insights into these issues, click here to access our latest whitepaper:
Review and Outlook: Management of Tax Obligations and Strategy for 2026.
In a changing compliance landscape, readiness is no longer a reactive measure but a strategic
choice. This year, companies must turn in their reports with confidence and clarity, positioning
themselves as organizations with progressive financial performance and stability.
SOURCES:
1. World Bank – Kosovo Country Overview (2024–2025)
https://www.worldbank.org/en/country/kosovo/overview
2. Central Bank of Kosovo – Quarterly Assessment of the Economy
https://bqk-kos.org/stabiliteti-financiar/vleresim-tremujor-i-ekonomise/?lang=en
3. Standard & Poor’s – Kosovo Sovereign Rating “BB” (2024)
https://www.seet-legal.com/kosovo-s-pr/
4. Law No. 08/L-257 – Administrimi i Procedurave Tatimore (2024)
https://gzk.rks-gov.net/ActDetail.aspx?ActID=32590
5. Tax Administration of Kosovo – Official Guidelines & Circulars
https://www.atk-ks.org/en/
