The aim of this study was to conduct a thorough analysis on tax and fiscal implications facing NGOs in Kosovo. The legal framework of NGOs in the country along European practices was examined. The tax laws and regulations for NGOs were examined; the Law on Freedom of Association in Non-Governmental Organizations of Kosovo was considered and some comparisons between this law and those in other countries were made. Regulation by organizations’ public benefit status was reviewed, and some parallels with other countries were drawn. Fiscal treatment of NGO’s was analyzed considering laws of income tax, property tax and VAT. This study was done in order to analyze whether they're legal framework enables these organizations to achieve optimum point contribution to the public good.