The Impact of Customs Procedures on Business Performance: Evidence from Kosovo

This paper aims to identify formal and informal institutional factors in customs procedures and their impact on the performance of small and medium-sized enterprises (SMEs) involved in international trade in Kosovo based on a questionnaire conducted in 2009. The econometric findings show that one of the most important obstacles encountered by SMEs are regular appeals against customs decisions that are assumed to be inter alia a consequence of frequent changes in over-complicated laws and regulations. However, there is a positive and significant effect of the formal customs institutions that facilitate the trade of imported goods, namely of so-called customs procedures with economic impact.customs, firm performance, formal and informal institutions, small and medium-sized enterprises, Kosovo

Hemoglobin (Hb) - Oxyhemoglobin (HbO) Variation in Rehabilitation Processes Involving Prefrontal Cortex

The prefrontal cortex is the anterior part of the frontal lobe, situated before the primary motor cortex and the premotor cortex and plays a role in the regulation of complex cognitive, emotional and behavioral functioning. It includes various Brodmann areas, such as 9, 10, 11, 12, 46, 47. The basic function of this region is guiding thoughts and actions toward one’s goals. The goal of the study is using functional near-infrared spectroscopy (fNIRS) to identify the most suitable rehabilitation model in subacute post-ischemic pathologies and impairments involving directly or indirectly the prefrontal cortex. The aim is to measure threshold parameters for neural fatigue through Hb-HbO2 variation. The overall purpose is the ongoing evaluation of Hb-HbO2 variation throughout the entire tailored rehabilitation program with the observation of patient’s clinical changes, which represents the heart of the Cerebro rehabilitation model

Tax Reforms in the Balkan Countries – Kosova Case

Today, when from the start of transition process in the Balkan countries about 19 years have passed, the reformation of their taxation systems is still ongoing, facing numerous challenges. The reforms of taxation systems is one of the most important components (segments) of their social-economic transition led by the aspiration to become members of the European Union. Higher results consist in the fact that all the Balkan countries, some earlier some later, have included the income tax, the corporation income tax and the VAT into their taxation systems. In this context, in order to create competitive taxation systems to attract investments and to make taxation harmonizations with the EU, the tax rates have considerably been reduced and succesful steps have been taken in the function of harmonization of taxes with the EU member countries. Some countries have managed to build their taxation systems in accordance with acquis communautaire. The creation of taxation system and policy in Kosova by UNMIK is a case of a unique example created in practice without internal influence and without a political dialogue. From 1999 until the Declaration of Independence, on 17 February 2008, UNMIK was the creator of the taxation system and policies in Kosova. After the Declaration of Independence, the Government of the Republic of Kosova took the first reformation step by reducing the income and corporation income tax rates. However, the taxation system and policies in Kosova must also be reformed in many other components

The Effectiveness of Kosovo\u27s Regulation on Public Sector Salaries

A very important economic contributor to the well-being of every country is its public sector. In Kosovo, it is even more important since the public sector is the main employer in the country. However, it is a sector characterized by many organizational and structural problems. One of the most important problems regarding this sector is the way salaries are set in different institutions of it. As such, the focus of this project was to evaluate the effectiveness of Kosovo’s regulation in setting public sector salaries. Specifically, the goal of this project was to provide an analysis of the current state regarding salaries in the public sector and highlight the problems associated with them. Based on the outcomes of this analysis, the aim of this project was to provide recommendations as to how to rectify this deadlock in the salaries of the public sector. Due to the nature of this issue, the project followed a quantitative analysis approach. As such, the core of this project was the analysis of existing data regarding salaries in different institutions in the public sector. Three ministries, one independent agency and one municipality were chosen for the analysis. One limitation to this project was that data for all the institutions were not available. Besides the analysis of salary data, three interviews were conducted to better understand the circumstances and the reasons behind the current situation in the public sector regarding salaries. Although the legislation for a modern public sector is in place, its implementation is lacking. The outcomes of this analysis show that there are several violations of the “equal pay for equal work” principle embedded in the legislation regarding salaries in the public sector. Based on the results of the analysis, salaries in the public administration of Kosovo do not account for living expenses. Moreover, they do not include remuneration for special and dangerous working conditions. Additionally, they also fail to acknowledge the importance of setting proper incentives for better educational qualification of the employees. Lastly, they do not provide the necessary incentives for the development of the public sector in the local level. These problems contribute to the demotivation of employees in the public sector which, inevitably, affects their performance

Fiscal Evasion in the Republic of Kosovo

The aim of this research is to analyze and find out the major issue of fiscal evasion in Kosovo. In this analysis we have used the research method of case study. The results of research show that the phenomenon of fiscal evasion and informality in Kosovo can hardly be measured because in essence these phenomena belong to the hidden economy. Fiscal evasion occurs as a result of disorders in the overall economy and is present in many countries, including industrialized countries as well as those with economy under development, and therefore the state of Kosovo is exposed to this phenomenon. This phenomenon is even more developed in countries lacking legal infrastructure, with particular emphasis the readiness of responsible persons for combating this phenomenon in the context of available opportunities. Kosovo has a high level of informality and this is due to insufficient inspection of enterprises and failure to implement applicable laws.&nbsp

Reformat tatimore në shtetet ballkanike – rasti i Kosovës

Sot kur nga fillimi i procesit të tranzicionit në shtetet ballkanike kanë kaluar rreth 19 vjet. Reformimi i sistemeve të tyre tatimore ende është në vazhdim duke u ballafaquar me sfida të shumta. Reformimi i sistemeve tatimore është njëri nga segmentet më të rëndësishme të tranzicionit të tyre shoqëror-ekonomik të udhëhequr nga aspirimi për t’u anëtarësuar në Unionin Evropian. Rezultatet më të mëdha konsistojnë në atë se të gjitha shtetet ballkanike, kush më e herët e kush më vonë, kanë aplikuar në sistemet e tyre tatimore tatimin në të ardhurat personale, tatimin në të ardhura të korporatave dhe TVSH-në. Në këtë kuadër, me qëllim të krijimit të sistemeve tatimore konkurruese për joshje të investimeve dhe harmonizimit tatimor me UE-në janë ulur dukshëm normat tatimore dhe janë ndërmarrë hapa të suksesshëm në funksion të harmonizimit të tatimeve me shtetet anëtare të UE-së. Disa shtete kanë arritur që sistemet e tyre tatimore t’i ndërtojnë në përputhje me acquis communautaire. Krijimi i sistemit dhe politikës tatimore në Kosovë nga ana e UNMIK-ut është rast i shembullit unik të krijuar në praktikë pa ndikimin e brendshëm dhe pa dialog politik. Nga 1999 e deri me shpalljen e pavarësisë më 17 shkurt 2008, UNMIK-u ishte kreator i sistemit dhe politikës tatimore në Kosovë. Pas shpalljes së pavarësisë, Qeveria e Republikës së Kosovës ndërmori hapin e parë reformues duke ulur normat tatimore të tatimit në të ardhura personale dhe tatimit në të ardhura të korporatave. Megjithatë, sistemi dhe politika tatimore në Kosovë duhet reformuar edhe në shumë segmente të tjera

Tax Reforms in Selected Balkan Countries: The Case Study of Kosovo

The aim of this research is to analyze and find out the major issue of tax reforms in selected Balkan Countries and the case of Kosovo. In this analysis we have used the research method of case study. The results of research show that reforms of tax systems of Balkan Countries, including Kosovo, is one of the most important components of their social-economic transition led by the aspiration to become members of the European Union. Higher results consist in the fact that the Balkan countries, some earlier some later, have included Personal Income Tax, Corporate Income Tax and the VAT into their tax systems. In this context, in order to create competitive tax systems to attract investments and to make tax harmonization with the EU, the tax rates have considerably been reduced and successful steps have been taken in the function of harmonization of taxes with the EU member countries. Some countries have managed to build their tax systems in accordance with acquis communautaire. After the declaration of Independence, the Government of the Republic of Kosovo took the first reformation step by reducing the income and corporation income tax rates. However, the taxation system and policies in Kosovo must also be reformed in many other components. Today, when from the start of transition process in the Balkan countries about 26 years have passed, the reformation of their tax system is still ongoing, facing numerous challenges

Overview of Major Issues of Tax Treaties Law in Kosovo

The legal framework for the elimination of double taxation initially started its establishment journey from the United Nations Administration Mission in Kosovo (UNMIK). Taking into consideration the specifications of the political status, the process for the establishment of the unilateral and bilateral legal framework has been made with mistakes, slow and with delays. Following its declaration of independence, Kosovo has paid greater attention to tax treaties. Although double taxation relief in Kosovo may be obtained either unilaterally or under a tax treaty, there remains a lot of work to be done for the completion of the necessary framework for elimination of double taxation. The double taxation relief provided by a tax treaty prevails over the domestic relief

Tax Incentives in Kosovo Tax System

Abstract: The aim of this research is to analyze and find out the major issue of tax incentives in Kosovo tax law. In this analysis we have used the research method of case study. The results of research show that Balkan countries in their tax systems have applied various mitigating measures that in tax theory are known as tax incentives. Taking into account that Kosovo regarding the application of tax incentives of CIT, compared with other countries is the last, designers by using the experiences of other countries should apply more tax incentives in order that tax policy to be more in function economic development. The study is of particular relevance to scholars, tax practitioners, expatriates who work and invest in Kosovo, etc.

Reform of Kosovo Tax System after independence and its key functions

In this paper we have analyzed the initial circumstances which characterize tax system in Kosovo after independence. After the Declaration of Independence, it is of the paramount importance that Kosovo has undergone through a reform of policy and tax system by exploring more seriously the economic functions.However, policy and tax system of Kosovo should be more in function of economic development by achieving equilibrium between direct and indirect taxes, increasing efficiency of public expenditures and to offer more tax incentives. Designers’ preliminary requirement is to analyze fiscal, economic, etc., effects of each tax form which aims to apply in accordance with tax policy objectives and to analyze the role and effects of tax incentives to each tax form. Taking into account that Kosovo regarding the application of tax incentives of CIT, compared with other countries is the last, designers by using the experiences of other countries should apply more tax incentives in order that tax policy to be more in function for economic developmen