Estrada paid taxes even though the state banned their jobs, so much money was evacuated during 2020.

During the year we left behind the budget of the Republic of Kosovo, it did not benefit even close to taxes from singers compared to the previous years.

Disregarding concerts under the ban on collections, restrictions on nightclubs, movement schedules and closure of borders led to Kosovo's Estrada being the focus of attention during the pandemic period.

Common singers practiced their activities freely in 2020 did not have the same situation. Government measures that varied at certain times hit heavily the area of recreation, namely holding concerts, weddings and other gatherings, which present the main basis for the survival of singers in Kosovo.

These circumstances, in turn, were also unable to benefit from the promotional taxes of singers.

The Kosovo Tax Administration in a response it has given to the Telegraph, has hinted that during 2020, a total of 433 thousand euros have been collected less taxes from singers than in 2019.

So during the entire 2020, there were a total of 244 thousand euros in taxes from the Kosovo Estrades, compared to a year earlier when 677 thousand euros had been collected.

“During 2019 from the entertainment and recrimination category have been collected in many of the 677 thousand euros, while in 2020 the funds collected amounted to 244 thousand euros. Like any other event, the performance of singers is subject to tax. Therefore, given that the Kosovo declaration system is the system of voluntary income statements, this category has paid taxes, where the latest data was mentioned above. In addition, ATK, based on the Law on Tax Administration and Procedures, Article 19, has the right to make tax assessment where it believes the information provided in the tax declaration is not correct”, said the ATK response.

Given that other gatherings and organisations were not allowed in Kosovo, a large part of its industry organised it outside Kosovo.

Albania as a coastal country, with great concentration of tourists despite severe circumstances, was the place where Kosovo music artists organised festive parties and even performed.

However, based on international tax agreements Kosovo has, singers must pay taxes in the state they perform.

So if they organise concerts in Albania, profit taxes are paid to the Albanian state, not the Kosovo one.

Kosovo has the International Tax Agreement, based on these agreements, the payment fee for singers' income takes place in the country where singing/show is carried out. Therefore, if the activity is realised in the other state and not in Kosovo, the tax fee must be made there. While with countries that have no agreement, paying taxes again must do so in the state where there is singing/show, in the form of tax kept in the source in the income”, it is said further in the ATK's response to Telegrafi.

Since there is still no rough date of returning the normality of the situation, the government's restrictive measures continue to remain in force.

In this context, strictly forbidden arrangements remain for weddings, concerts, and other gatherings where large numbers of people may be present. This implies that normality in the way of professional exercise will be free from singers, and in this context, there will be no income for the past few years.

In such a situation, there will also be reliefs for singers from ATK. The latter say they are implementing a tax debt payment opportunity through installments.

So this means that tax bound by law may be paid in smaller sums over a longer period.

Yet, to take advantage of this opportunity, an individual must meet certain legal criteria.

“ATK in early 2021 will approve the 2021 annual work plan. Under this plan, there is no additional form for collection except what is legally envisioned. One last resort being implemented is the possibility of paying the tax debt in installments through the tranche agreement. For this, certain legal criteria must be met for the taxpayer's right to profit from this. ATK is the executive institution, which aims to implement tax legislation uniformly, meaning there is no mandate to lower the tax sum. This is more of a central policy-making level, which needs a change of legal base”, the ATK recently said about Telegrafi.

Kosovo Tax Administration

We remember that after the economic consequences of pandemic and government-set measures, Kosovo singers had also staged protests. Their main requirement was to allow weddings to be held, and to be under conditions set by Kosovo health institutions.

However, this was not convincing of the government, which continues to keep overnight nightclubs closed and bans on weddings and gatherings, and the rigorous restriction of hours of movement.