Western Balkans Competitiveness Outlook 2024: Kosovo

5. Tax policy

Abstract

A well-planned tax policy provides the necessary incentives to promote economic growth. This chapter, along with two sub-dimensions, explores the effectiveness of tax policy and tax administration. The first sub‑dimension, tax policy framework, assesses the soundness and efficaciousness of the legal framework, the tax system, and the incentives for investment in promoting steady economic growth. The second sub‑dimension, tax administration, focuses on the efficiency and transparency of the tax administration organisation while also reflecting upon the tax filing and payment procedures and taxpayer services.

Key findings

Kosovo’s overall score has decreased since the previous Competitiveness Outlook, falling slightly below the regional average (Table 5.1). The economy's tax policy framework has been adversely affected by the low performance in tax expenditure reporting and the personal income tax and social security contributions (PIT & SSC) framework. Overall, there is significant scope for Kosovo to raise more revenues and increase its tax policy analysis capabilities.

Table 5.1. Kosovo’s scores for tax policy

Dimension	Sub-dimension	2018 score	2021 score	2024 score	2024 WB6 average
Tax policy	4.1: Tax policy framework			1.9	2.4
	4.2: Tax administration			4.2	3.8
Kosovo’s overall score		2.3	3.4	3.0	3.1

The key findings are:

• Kosovo has the lowest personal income tax and social security contribution rates in the region, both of which are also significantly below OECD averages. Yet, despite this low tax burden on labour and improvements in tax administration through more risk-based audits and e-filing, the economy continues to struggle with combating informal employment.

• Kosovo offers generous tax investment incentives and a presumptive tax regime to support small and medium-sized enterprises. These businesses can benefit from both profit-based incentives (which reduce the tax rate applicable to taxable income) and cost-based incentives (which lower the cost of investments). Moreover, the existing presumptive tax regime allows small businesses to pay a reduced rate of 3% or 9%, depending on the sector of operation.

• Kosovo currently has a young population, but decreasing fertility rates and high levels of emigration will lead to significant population ageing in the medium and long term, which may put pressure on SSC revenues. Despite this, Kosovo has no plans to assess the impact of such changes on its PIT and SSC systems. Specifically, the Tax Administration of Kosovo (TAK) has not begun to evaluate how challenges posed by population ageing or emigration will impact its tax revenue or the overall functionality of the social security system.

• There is scope to improve the use of economic modelling and forecasting for tax policy analysis. Although the Kosovo Macro Projection Model is used to forecast future tax revenue, the Ministry of Finance and TAK have not yet implemented any micro-simulation models. As a result, it cannot utilise microdata to analyse the potential effects of PIT, SSC, or corporate income tax (CIT) reforms.

• Since 2021, Kosovo has demonstrated significant progress in advancing its use of electronic tax filing. In 2022, it became mandatory to electronically file taxes through an official online portal, substantially increasing the prevalence of online tax declarations.

• The Global Anti-Base Erosion (GloBE) Rules may have implications for Kosovo and warrant further assessment. However, the economy has yet to begin evaluating how the implementation of the GloBE Rules would impact its tax system.

State of play and key developments

Sub-dimension 4.1: Tax policy framework

Tax revenue in Kosovo remains relatively low, with its tax mix heavily dependent on taxes on goods and services. In 2021, taxes on goods and services accounted for 73.3% of Kosovo’s total tax revenues, which is significantly above both the OECD and WB6 averages. Similarly, social security contributions (SSC) revenues in Kosovo are low compared to its WB6 and OECD counterparts (Table 5.2). In 2021, the level of SSC revenues was 2.7% of GDP, compared to the WB6 and OECD averages of 9.9% and 9.2%, respectively.

Table 5.2. Kosovo’s tax revenues as a share of GDP (2022)

Tax revenues are expressed as a percentage of GDP

	Corporate income tax revenues	Personal income tax revenues	Social Security contributions revenues	Taxes on goods and services revenues	Total tax revenues
KOS	1.8	2.4	2.7	20.1	27.5
WB6	2.1	1.9	9.9	14.9	30.4
OECD	2.8	8.3	9.2	10.6	33.6

Note: Information on Kosovo is from 2022 and information from the OECD is from 2020.

Sources: Kosovo Agency of Statistics for the Competitiveness Outlook Assessment; OECD (2022[1]).

Kosovo has a low corporate income tax (CIT) rate of 10%, which is reflected in the low revenues collected from the CIT (1.8% of GDP compared to the OECD average of 2.1% of GDP). As with all other WB6 economies but unlike most OECD countries – in particular smaller countries that operate under a territorial tax system – Kosovo has a worldwide CIT system, meaning that the tax base for resident companies includes domestic and foreign source income. Non-resident taxpayers, on the other hand, are just taxed on income generated in Kosovo. Corporate capital gains are included in the CIT base, while dividend income distributed to businesses is not considered taxable income for CIT purposes and no withholding tax is applied, even if the dividends are distributed to non-resident companies.

Investment incentives in Kosovo involve both cost- and profit-based tax incentives. Kosovo’s profit-based tax incentives are targeted at small companies, and its cost-based tax incentives target research and development (R&D) investments and the training of employees. Overall, Kosovo’s low rates, special turnover regimes and corporate tax incentives provide an attractive corporate tax environment for investment. However, this comes at a cost to tax revenue. Moreover, because these incentives are not regularly reviewed and evaluated, it is uncertain how effective they are as well as whether or not they introduce unintended distortions into the tax system.

Apart from profit-based incentives, small businesses also benefit from Kosovo’s presumptive tax regimes, also known as simplified tax regimes. These regimes target firms as well as self-employed individuals with an annual turnover under EUR 30 000 for businesses and EUR 50 000 for the self‑employed by reducing their tax rate to either 3% or 9% (depending on the sector in which they operate). Presumptive tax regimes can lower the barriers to entry into the formal sector by reducing compliance and administrative costs, which disproportionately impact these targeted groups (Mas-Montserrat et al., 2023[2]). Such an outcome is particularly desirable given that the informal sector in Kosovo is estimated at over one-third of employment (IMF, 2022[3]).

Recent international tax developments may have implications for Kosovo and warrant further assessment. The Global Anti-Base Erosion Rules (GloBE) ensure large multinational enterprises pay a minimum level of tax on the income arising in each of the jurisdictions where they operate. While economies are not required to adopt the GloBE Rules, jurisdictions that adopt them will apply an effective tax rate test using a common tax base and a common definition of covered taxes to determine whether a multinational enterprise (MNE) is subject to an effective tax rate of at least the agreed minimum rate of 15% in any jurisdiction where it operates (OECD, 2022[4]). For Kosovo that means that in-scope Ultimate Parent Entities of MNE Groups – that have their headquarters in a jurisdiction that has implemented the GloBE Rules and that operate a subsidiary (or Constituent Entity) in Kosovo – may be subject to a top-up-tax in the residence jurisdiction, if the profits earned in the subsidiary are taxed at an effective rate below 15%. Given that Kosovo’s statutory CIT rate is below the global minimum effective tax rate, the GloBE Rules are likely to have implications for the subsidiaries of MNEs that are in-scope of GloBE and operate within its jurisdiction. To avoid forgoing tax revenues in the short run, Kosovo will need to consider how to align its tax policies with these international standards and, in the short term, may wish to consider introducing a qualified domestic minimum top-up tax (QDMTT).

Kosovo still uses the OECD Model Tax Convention as a basis for its double-tax treaties, which has indirectly led to the implementation of some base erosion and profit shifting (BEPS) minimum standards. Kosovo also has yet to engage in administrative co-operation or exchange of information initiatives. Exchanging information through the OECD Automatic Exchange of Information (AEOI) standards and implementing the Country-by-Country (CbC) Reporting Package can incentivise taxpayers to voluntarily disclose their assets and enables the tax authority to better detect evasion activities and concealed offshore assets.

The personal income tax (PIT) system in Kosovo is characterised by low rates (Table 5.3), which contribute to a reduced tax burden on labour income in comparison to both WB6 and OECD economies. Despite its progressive nature, these low PIT rates limit the amount of tax revenue and, therefore, its redistributive impact. The annual PIT allowance is EUR 960. Income above EUR 960 and below EUR 3 001 is taxed at a marginal PIT rate of 4%. The share of income above EUR 3 000 and below EUR 5 401 is taxed at 8%, and the remaining income is taxed at a top PIT rate of 10%.

Similarly, the SSC rates in Kosovo are significantly lower than those in WB6 and OECD economies. Employers and employees each pay 5% of the gross salary in SSCs, and employees can deduct the 5% from their PIT base. The minimum SSC rate for self-employed is 10%. For self-employed paying income tax on a presumptive basis, the minimum SSC rate is 33% of the presumptive tax amount.

Table 5.3. Personal Income Tax top rate and Social Security Contributions rates in Kosovo, the WB6 economies and the OECD (2022)

In percentage

	Maximal PIT rate	Total SSC rate
KOS	10	10
WB6	13.8	27.2
OECD	43	26.1

Note: WB6 and OECD denote average values.

Sources: National authorities information for the CO 24 assessment; OECD (2024[5]).

Both the PIT and SSC systems will face medium- and long-term challenges posed by demographic changes, namely population ageing due to decreasing fertility rates and high levels of emigration (European Commission, 2021[6]). However, despite these recognised challenges, the economy has not yet assessed, nor does it plan to assess, the effect of such changes on its tax revenue and the functionality of the SSC system and design and implement reforms accordingly. By using taxpayer microdata and projected demographic changes, Kosovo could estimate the impact of these structural trends on PIT and SSC revenues as recommended in OECD (2018[7]).

The only economic modelling and forecasting carried out by the Tax Administration of Kosovo is the Kosovo Macro Projection Model, which is used to make aggregate tax revenue projections for most types of taxes (excluding property tax). This model is regularly updated and adjusted annually or any time that a structural change to the economy occurs. One notable example followed the COVID-19 pandemic, when increased subsidies and cash transfers overestimated PIT and CIT revenue and consequently required readjustment. There are currently no plans to develop micro-simulation models that analyse PIT, CIT, or SSCs, unlike in other WB6 economies where these models exist.

Regarding the design and structure of the value added tax (VAT) system, the standard VAT rate in Kosovo is 18%, which is similar to the OECD average of 19.2%. Kosovo has a VAT registration threshold of EUR 30 000 and an 8% reduced rate for, among other goods and services, the supply of electricity, water, basic foods, textbooks, and medicine supplies. And while Kosovo has not implemented the International VAT/GST Guidelines (value added tax/goods and services tax), it does levy VAT on cross-border digital services. Additionally, the rules determining the place of taxation reference the usual residence of the private consumer, which is also aligned with the Guidelines. This is important because the rapid growth in online sales of services and digital products (streaming, gaming, accommodation rentals, ride-hailing, etc.) requires regular updating of rules to ensure that VAT is collected. Involving digital platforms in the VAT collection and remittal process can lower administrative costs and increase efficiency.

Kosovo levies a limited number of environmentally related taxes, including excise duties on gasoline and diesel and an “ecology” tax on motor vehicles. These taxes are broadly in line with the Climate Change Strategy of Kosovo (2019-28), which covers both climate change mitigation and adaptation actions and objectives. Namely, given that the two sectors most responsible for total greenhouse gas (GHG) emissions in Kosovo are the energy sector (75% of GHG emissions) and the road transport sector (12%), these taxes aim to reduce emissions in these domains. However, there is still significantly more scope to strengthen the role of environmentally related taxes in order to help Kosovo meet its climate goals. For instance, Kosovo does not currently levy a carbon tax, nor has it begun to assess or respond to the EU Carbon Border Adjustment Mechanism (CBAM), which enters into force in January 2026.1

Although Kosovo levies excise taxes on tobacco, alcohol and sugar-sweetened beverages (SSBs), it does not use health taxes to their full potential. The total tax burden on cigarettes is below 75% of the retail price, which is the minimum level recommended by the World Health Organisation (WHO). Additionally, unlike many OECD countries, Kosovo only levies specific excise taxes on tobacco products. Combining specific and ad valorem taxes for tobacco products discourages the consumption of both high- and low‑value products (OECD, 2020[8]). For the specific component of the excise tax, it is important to have a system in place that allows for regular adjustment for the tax to keep pace with inflation and real income growth. However, one practice of Kosovo is its engagement in regional co-operation to combat smuggling and illegal cross-border tobacco trade in order to increase health tax compliance.

Kosovo still does not conduct regular tax expenditure reporting, although it does report its tax expenditures in its budget. Expanding and regularising public tax expenditure reporting increases transparency and improves efficiency. Moreover, having tax expenditure estimates would allow policy makers to evaluate the efficiency and effectiveness of tax expenditures, including tax incentives, through cost-benefit analysis.

Sub-dimension 4.2: Tax administration

The main taxation functions, including the typically police-handled tax fraud investigations, fall under the purview of the Tax Administration of Kosovo (TAK). Alongside these responsibilities, the TAK, in collaboration with the Customs Service, also collects VAT on imports. A unified entity managing all taxes and primary tax administration functions enhances efficiency (OECD, 2022[9]). Various national and international bodies, including the Office of the Auditor General in Kosovo, the International Monetary Fund, and the European Commission regularly assess the TAK's operations, which facilitates strategic planning.

In terms of tax compliance and risk management, the TAK and regional administrations use a risk-based approach to identify taxpayers with irregularities against a predefined set of risk criteria. This process is supported by the Division of Tax Audit Procedures and the Division of Risk Management. The outcome of these analyses is a Risk Responsibility Plan, sorting taxpayers into different revenue risk categories. OECD studies highlight the effectiveness of risk-based selection in enhancing compliance programmes, and enabling optimal decision making and resource allocation (OECD, 2022[9]).

Regarding independence and transparency, the TAK operates with full autonomy in the Ministry of Finance. A legal structure outlines its legal status, tasks, responsibilities, and linked procedures. Although the TAK's budget is not independent, the TAK has full control over its use. The Director General of the TAK presents an annual report to the Ministry of Finance, and the Office of the Auditor General in Kosovo regularly audits the TAK, producing reports with compulsory recommendations for the management board.

Consistent with a broader trend accelerated by the pandemic (OECD, 2022[9]), electronic tax filing through an official online portal became mandatory in Kosovo at the beginning of 2022. Between 2019 and 2022, online tax declaration increased by almost 30%. Furthermore, the TAK is developing an online tax calculator for taxpayers in order to increase transparency. The tax filing process is periodically evaluated by external auditors, including the International Monetary Fund (IMF) and the TAK.

The TAK, along with its regional services, provides a broad spectrum of taxpayer services. The public has access to information, electronic communication, and face-to-face inquiries. Also, a taxpayer advocate is provided by Kosovo's tax legislation to protect the rights of citizens vis-à-vis the tax administration. Finally, the TAK also conducts biennial taxpayer satisfaction surveys to continuously improve its performance.

Overview of implementation of Competitiveness Outlook 2021 recommendations

Kosovo’s progress on implementing past CO Recommendations has been limited in most domains, with no progress made toward assessing the effects of different tax policies or making voluntary SSCs mandatory. However, some moderate progress was achieved largely in terms of strengthening Kosovo’s regional and international engagement in tax matters. Table 5.4 shows the economy’s progress on implementing past recommendations for tax policy.

Table 5.4. Kosovo’s progress on past recommendations for tax policy

Competitiveness Outlook 2021 recommendations	Progress status	Level of progress
Broaden support for economic recovery in light of COVID-19, with targeted tax and subsidy measures	All COVID-related tax measures have been phased out.	Strong
Increase tax revenue and diversify the tax mix by strengthening the role of CIT, PIT and SSCs	There were few to no policy actions towards diversifying the tax mix. However, there were improvements in tax collection through more risk-based audits and e-filing.	Limited
Assess the design of the PIT rate schedule to bring more targeted progressivity into the tax system	No indication that this assessment has taken place or has led to a change in policy.	None
Reinforce efforts to curb the informal economy and encourage businesses to register in the formal economy	Tax enforcement practices through risk-based audits have improved. Kosovo also targets small businesses through a special tax regime to lower the tax burden on those businesses.	Moderate
Consider making voluntary SSCs mandatory to widen the scope of welfare protection	No indication that this assessment has taken place or has resulted in policy actions.	None
Assess the merits of differentiated taxation of labour and capital income	No indication that such an assessment has taken place.	None
Avoid the use of profit-based tax incentives	The profit-based tax incentives are targeted at small companies, while larger companies mostly benefit from cost‑based incentives.	Limited
Strengthen capacities and tools to assess the effects of tax policies on the economy	Kosovo has yet to develop a tax expenditure report.	None
Re-evaluate the merits and disadvantages of worldwide taxation for resident companies	No indication that such an assessment has taken place or resulted in policy changes.	None
Follow the discussions of the OECD/G20 Tax Challenges Arising from Digitalisation project, in particular the work on Pillar 2 that aims to introduce a global minimum tax	No indication that this is actively being assessed or resulted in policy actions.	None
Strengthen engagement with the international tax community and implement international best practices	Kosovo uses the OECD Model Tax Convention as a basis for its double-tax treaties.	Moderate
Foster regional co-operation and co-ordination on common tax issues within the WB region	Kosovo is part of the Regional Cooperation Council’s SEE Strategy 2020 implementation programme. Its main regional co-operation partners are Albania and North Macedonia, with whom it exchanges best practices.	Moderate

The way forward for tax policy

Considering the level of the previous recommendations’ implementation, there are still areas in which Kosovo could enhance the tax policy framework and further improve the functioning of the tax administration. As such, policy makers may wish to:

• Analyse the impact of the GloBE Rules on its tax system and tax incentives and, in the short term, consider introducing a QDMTT. Given Kosovo’s low statutory CIT rates and generous tax incentives, the implementation of the GloBE Rules might necessitate a re-evaluation and re-design of these policies.

• Evaluate the effect of future demographic changes on revenue and the functioning of the SSC system. Although Kosovo has a relatively young population, trends of population ageing and emigration will impact the economy’s population structure and consequently can place significant strain on the SSC system. Evaluating these changes would be an important step towards developing a plan to make Kosovo’s public finances more resilient.

• Assess the impact of the EU Carbon Border Adjustment Mechanism (CBAM) on its export economy and consider increasing its carbon pricing accordingly. Pricing carbon domestically comes with the added benefit of generating revenues that can be mobilised to further accelerate the green transition and meet other social and political priorities (OECD, 2022[10]). By introducing carbon pricing and increasing existing excise taxes on fossil fuels, Kosovo could not only make progress on meeting its climate goals, but also generate additional revenue.

• Assess the feasibility of amending PIT rates to strengthen the tax system’s progressivity. Strengthening the progressive nature of the PIT system might enable the government to boost tax revenues without imposing additional burdens on the lowest-income workers in the economy.

• Engage in administrative co-operation or exchange of information initiatives. Strengthening its capacity in this area will help Kosovo more effectively tax capital income from its top earners (OECD, 2017[11]). Although the initial investment in implementing the Common Reporting and AEOI Standards may appear significant, the medium- to long-term return is high. This includes the possibility of using exchanged data for tax enforcement purposes (i.e. from tax assessment to tax collection), as well as a deterrent effect against tax evasion practices associated with the availability of offshore financial account information domestically.

• Review the tax system’s impact on the informal economy. Currently, the Tax Administration of Kosovo does not systematically analyse the impact of PIT or SSC rates on informal employment. However, given the prevalence of informal work, it is crucial that the economy assess how any potential reforms might affect informality. For example, any discussion on raising SSC rates should consider the impact on low-income workers – and indirectly on informal employment.

• Consider regularly producing tax expenditure reports. These reports can improve transparency and allow for evaluation of the efficiency and effectiveness of tax incentives (Box 5.1).

Box 5.1. Best practices in tax expenditure reporting

The main goal of tax expenditure (TE) reporting is to increase transparency and accountability and, in this way, contribute to well-informed choices on allocation of resources. Some best practices include:

• Publication of TE reports should be integrated into the budgetary process compulsorily by law. Bringing TEs into the budgetary process should increase transparency by subjecting them to a similar to that of direct expenditures.

• Reporting should ideally be on an annual basis, which is the practice in most economies.

• The benchmark should be clearly defined and documented. The report should include a clear description of the benchmark tax system. Ideally, the TE report (or an accompanying methodological annex or background document) should include a discussion and justification for the choice of that benchmark.

• The TE estimation method should be described in detail on an item-by-item basis within the TE report, either as part of the main body of the report or as an annex within the report. This will provide transparency and clarity to the reader of the underlying calculations and TE estimates.

• TE reports should classify provisions along different dimensions. Ideally, TEs should be classified by tax base (PIT, CIT, VAT, excise taxes, etc.), type of TE (credit, allowance, exemption, reduced rate), the function to which they are attributable (education, fuel and energy, health, defence, etc.), their policy objective (employment, R&D and innovation, housing, reducing poverty, etc.) and the targeted beneficiary group (corporations, individuals, SMEs, the self-employed, etc.).

• Ranking all TEs by their value or otherwise listing the top TEs can improve clarity and guide users to the main provisions in terms of revenue forgone. While the United States ranks all TEs by total value, France, Germany and Australia provide a non-exhaustive list of the top ten or fifteen TEs. All TEs should be listed. The cost of certain TEs may not be reported because of lack of data or disproportionate estimation costs among other factors. TE reports should nonetheless list all TEs identified, irrespective of whether or not they are measured.

Sources: IMF (2020[12]); Kassim and Mansour (2018[13]); Mansour and Heady (2019[14]); Redonda and Neubig (2018[15]).

• Implement a vendor collection regime supported by streamlined registration and collection procedures. The regime would help collect VAT on business to consumer (B2C) supplies of services and intangibles supplied by non-resident providers (OECD, 2019[16]). This approach to digital taxation can simplify the VAT compliance process for consumers, particularly in the cases of cross-border transactions.

• Evaluate whether increasing the CIT rate could increase tax revenues without harming investment. Such an assessment should take into account the dual objective of the economy raising more tax revenues while also remaining an attractive business environment.

References

[6] European Commission (2021), European Social Policy Network Thematic Report on Long Term Care for Older People - Kosovo, Publications Office of the European Union, https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=&ved=2ahUKEwiA5cyd4dWGAxVKTaQEHWasBY0QFnoECBIQAQ&url=https%3A%2F%2Fec.europa.eu%2Fsocial%2FBlobServlet%3FdocId%3D24031%26langId%3Dga&usg=AOvVaw3YsrBIPPPNGmXB1UoXyz7l&opi=89978449.

[3] IMF (2022), “Republic of Kosovo: 2021 article IV consultation-press release and staff report”, https://www.imf.org/en/Publications/CR/Issues/2022/01/11/Republic-of-Kosovo-2021-Article-IV-Consultation-Press-Release-and-Staff-Report-511873 (accessed on 12 February 2024).

[12] IMF (2020), Chile: Technical Assistance Report - Assessment of Tax Expenditures and Corrective Taxes, International Monetary Fund, https://www.elibrary.imf.org/view/journals/002/2020/305/article-A001-en.xml#A01fn04 (accessed on 1 February 2024).

[13] Kassim, L. and M. Mansour (2018), “Les rapports sur les dépenses fiscales des payes en développement: Une évaluation”, Revue D’Économie du Développement, Vol. 2/26, pp. 113-167, https://www.cairn.info/revue-d-economie-du-developpement-2018-2-page-113.html.

[14] Mansour, M. and C. Heady (2019), Tax Expenditure Reporting and Its Use in Fiscal Management: A Guide for Developing Economies, International Monetary Fund, https://www.imf.org/en/Publications/Fiscal-Affairs-Department-How-To-Notes/Issues/2019/03/27/Tax-Expenditure-Reporting-and-Its-Use-in-Fiscal-Management-A-Guide-for-Developing-Economies-46676.

[2] Mas-Montserrat, M. et al. (2023), “The design of presumptive tax regimes”, OECD Taxation Working Papers, No. 59, OECD Publishing, Paris, https://doi.org/10.1787/141239bb-en.

[5] OECD (2024), OECD Tax Database, https://www.oecd.org/tax/tax-policy/tax-database.htm/ (accessed on 30 May 2024).

[10] OECD (2022), Pricing Greenhouse Gas Emissions: Turning Climate Targets into Climate Action, OECD Series on Carbon Pricing and Energy Taxation, OECD Publishing, Paris, https://doi.org/10.1787/e9778969-en.

[1] OECD (2022), Revenue Statistics 2022: The Impact of COVID-19 on OECD Tax Revenues, OECD Publishing, Paris, https://doi.org/10.1787/8a691b03-en.

[9] OECD (2022), Tax Administration 2022: Comparative Information on OECD and Other Advanced and Emerging Economies, OECD Publishing, Paris, https://doi.org/10.1787/1e797131-en.

[4] OECD (2022), Tax Incentives and the Global Minimum Corporate Tax: Reconsidering Tax Incentives after the GloBE Rules, OECD Publishing, Paris, https://doi.org/10.1787/25d30b96-en.

[8] OECD (2020), Consumption Tax Trends 2020: VAT/GST and Excise Rates, Trends and Policy Issues, OECD Publishing, Paris, https://doi.org/10.1787/152def2d-en.

[16] OECD (2019), The Role of Digital Platforms in the Collection of VAT/GST on Online Sales, OECD Publishing, Paris, https://doi.org/10.1787/e0e2dd2d-en.

[7] OECD (2018), Reshaping the Personal Income Tax in Slovenia, https://www.oecd.org/tax/tax-policy/reshaping-the-personal-income-tax-in-Slovenia.pdf.

[11] OECD (2017), Standard for Automatic Exchange of Financial Account Information in Tax Matters, Second Edition, OECD Publishing, Paris, https://doi.org/10.1787/9789264267992-en.

[15] Redonda, A. and T. Neubig (2018), Assessing Tax Expenditure Reporting in G20 and OECD Economies, Council on Economic Policies, https://www.cepweb.org/wp-content/uploads/2018/11/Redonda-and-Neubig-2018.-Assessing-Tax-Expenditure-Reporting.pdf.

Note

← 1.  The EU Carbon Border Adjustment Mechanism (CBAM) is the policy instrument designed to reduce the likelihood of carbon leakage by instituting a carbon price on imported goods. This tool reflects the EU’s commitments to reducing its greenhouse gas emissions under the “Fit for 55” package while still ensuring a level playing field between EU and non-EU businesses. The CBAM’s transitional period, which started on 1 October 2023 and continues until the end of 2025, exclusively involves reporting obligations; however, from 1 January 2025, carbon pricing will also be implemented.