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This article presents information on the tax system in Macedonia in 2011. It discusses changes in the tax system to attract foreign investment. It highlights a number of tax reforms and incentives for both domestic and foreign investors. It also states the enforcement of corporate and value-added taxes (VAT) in the country. In addition, the article offers an overview of tax and legal services offer by a number of firms in the country, including Ernst & Young and PricewaterhouseCoopers Macedonia.

The article discusses an initiative by the Former Yugoslav Republic (FYR) of Macedonia to develop its tax system to attract more foreign direct investments. The Macedonian government has introduced several tax reforms and incentives favoring domestic and foreign companies and investors in order to establish itself as one of the preferred jurisdictions in Europe for tax structuring. Under its Foreign Exchange Law, banks are allowed to make payments to or from foreign countries with no restrictions. In 2008, the country implemented a 10% corporate income tax flat rate.

The article reports on the introduction of the principle of exemption for certain types of dividend distributions in the amendments to the Profit Tax Law of Former Yugoslav Republic (FYR) Macedonia which took effect on July 7, 2010.

The article discusses the legislative amendments that continuously being pursued by the government of FYR Macedonia in its bid to attract more foreign direct investment to the country. The changes intend to level off the conditions for foreign and local investors, along with extensive incentives on investments. The definition of a resident legal entity under the country's law is an entity whose main offices and representative offices are located in the territory of FYR Macedonia. The transactions that can be made by non-residents are also cited, including the right to acquire or sell real estate for business purposes.

The article probes into the new income and capital tax treaty formed by Macedonia with Slovakia. The treaty was signed by the countries on October 5, 2009 and has been ratified by the Parliament of Macedonia. It will replace the existing 1981 treaty between the former Yugoslavia and the former Czechoslovakia, and will be implemented for at least five years. Under the treaty, the maximum withholding tax rate at source will be set at 5% for dividends and 10% withholding tax for both interest and royalties.

The article reports a real estate boom experienced by the Balkan country of Macedonia. The location of the country makes it the perfect distribution and transit center. The government has introduced legislative changes to make it easier for foreign entities and citizens to acquire property. The most attractive region for investment is the capital city of Skopje.

The article reports that the governments of FYR Macedonia and the United Arab Emirates (UAE) ratified a tax treaty on October 26, 2015, which will cover personal income tax and profit tax in FYR Macedonia and income tax and corporate tax in UAE.

The article focuses on the double tax treaty adopted by Macedonia and Vietnam on October 15, 2014. Topics discussed include an overview of the double tax treaty which includes the definition of permanent establishments and withholding tax, and an assessment on the double tax treaty based on the Model Convention of the Organization for Economic Co-Operation and Development (OECD).

The article reports that the Former Yugoslav Republic of Macedonia has decided to extend the preferential value-added tax (VAT) rate to the first sale of residential buildings until the end of 2018. Topics discussed include the recognition of the standard rate of 18 percent and a preferential rate of 5 percent under the VAT regime and the residential use of buildings as a qualifier for reduced VAT rate.

The article reports on the approval by the government of FYR Macedonia of the double tax treaty (DTT) with the Kingdom of Saudi Arabia on July 14, 2015.

The article discusses some provisions of the double tax treaty signed by Former Yugoslav Republic (FYR) Macedonia and Kazakhstan on July 2, 2012. It cites the treaty's coverage of corporate income tax, profit tax, and personal income tax and mentions provisions relating to permanent establishments (PE), withholding tax rates, and double taxation avoidance. It also notes the ratification of the treaty by the Kazakhstan Senate in 2015 and FYR Macedonian Parliament in 2012.

The article explores the Law on Value Added Tax in the Republic of Macedonia, which underwent several revisions throughout 2014 and its latest form as of January 2015 introduces changes that will significantly impact most small and medium businesses.

The article reports the move by the government of FYR Macedonia in August 2014 to reduce the value added tax (VAT) rate to 5% on several products previously subject to the 18% VAT rate, including livestock, livestock food, and school supplies.

The article reports on the implementation of quarterly instead of annual payments of value added taxes by companies based in the Republic of Macedonia that became effective in July 1, 2014.

The article reports the move by the FYR Macedonian government as of March 2014 to pass the Budget for 2014, including the proposed taxation regime.

The article reports on the decision of the FYR Macedonian government to approve the Law on Public Disclosure of Tax Debtors.

The article indicates that the former Yugoslav Republic (FYR) Macedonian government considers any interest income arising from loans as regular income. It cautions that there are specific points in relation to the interest rate worth surveying in details, which are often neglected by taxpayers. It also informs that another interest-related aspect that changes the tax base for corporate income tax is interest payments for loans received and used outside the main business activity.

The article examines the two-fold system of corporate tax in Macedonia. The first element involves tax arising in cases of dividend distribution. The second elements deals with non-deductible expenses plus any understated revenues. Employee-related expenses, public interest donations and sponsorships, and entertainment expenses are partially deductible expenses.

The article discusses the developments on the area of taxation in FYR Macedonia as of mid-2013. It claims that the mandatory use of the electronic tax (e-tax) system from the Public Revenue Office (PRO) started in early 2013. It explains how legal entities could register to the system, particularly on the completion of a digital certificate secured from an authorised digital certificate institution and a valid email address.

The article reports on the enactment of the Law of Lawyer Stamps in the Republic of Macedonia in July 2012. It mentions that despite the enforcement of the law, the Constitutional Court of the country continues to review the law in 2013. According to the author, the review was caused by criticisms raised by a great numbers of lawyers in the Republic. The author adds that the law mandates every lawyer who earn income in cash to attach lawyer stamps to every form or document that they forward to the taxation authorities.

The article offers information on the ratification of the income tax treaty between Macedonia and Kazakhstan. It states that the treaty covers the personal income tax and profit tax in Macedonia and the corporate income tax and the individual income tax in Kazakhstan. It mentions that the treaty stipulates that both countries will allow deduction from taxes in the amount of tax paid on it in the other state.

The article examines the rules governing forceful collection of debt in Macedonia. Under Macedonian law, if the legal deadline for commencing a procedure for forceful claim collection has passed, the debtor can file a court appeal and stop the procedure. One year is the legal period given for the provision of communication services within which a forceful collection procedure can be initiated. Within two years of the prescribed payment date, municipal taxes and administrative fees become obsolete under the country's laws. A legal timeframe of five years is provided as forceful collection period for debt categories like long and short term credit claims and legal advice service provision claims, among others.

The article reports that the Macedonian Parliament has ratified its income and capital tax treaty with Luxembourg. Signed on May 15, 2012, the treaty covers personal income tax, property tax and profit tax in Macedonia. In Luxembourg, the treaty covers individuals' income tax, capital tax, corporation tax and communal trade tax.

The article reports on the move by the former Yugoslav Republic (FYR) of Macedonian Parliament to ratify the income and capital tax treaty that was established by the Macedonian government with Kuwait in early 2012. Among the taxes covered by the treaty are corporate income tax, personal income tax, and property tax. It claims that the treaty is mainly harmonised with the Organisation for Economic Co-operation and Development (OECD) convention. The provisions of the treaty for permanent establishment (PE) are also examined.

The article discusses the new law implemented by Macedonia for the accounting profession. It states that the law comes with a wide range of effects on the operations of entities performing accounting services even if it is widely supported by accounting and tax professionals. According to the author, the legislation discerns between licenses as well as certificates that are issued to people while licenses that are issued to firm. The law also classifies into accountants and certified accountants.

The article reports that the Property Tax Law in Macedonia has been amended. The changes will take effect in January 2013. The changes allow employees of the local self-government bodies to conduct property assessments. The local self-government bodies will also be allowed to request an external certified assessor to perform a property value assessment. Property assessments are needed to determine the property tax base. Property taxes in Macedonia are considered as local taxes, being paid to local municipalities.

The article reports on the adoption of an amended Law on Tax Procedure in the FYR Macedonian Parliament in June 2012.

The article discusses tax treatment of dividends paid in Macedonia which largely depends on the residency of the dividend-receiving entity. A principle of exemption was introduced in the country for certain types of dividend distributions on July 2010, which exempted all forms of profit distribution made to resident legal entities from corporate income tax. It is noted that despite the development, dividends distributed to non-residents, legal entities or individuals, continue to be taxed in the country.

The article reports that the Parliament of Madeconia has adopted the amended Law on the Public Revenue Office (PRO). The amendments mandate the PRO to supervise the implementation of policies and actions defined in the Law Against Money Laundering (AML). The AML Law requires entities to perform client due diligence, monitor transactions, collect information on clients' transactions, and report suspicious deals. The AML Law applies to entities in the fields of accounting and auditing, real estate, tax consulting and general consulting services.

The article presents a forecast for capital investments and tax revenue in Macedonia in 2012.

The article discusses various tax treatments of stock-taking differences under value-added tax (VAT) legislation in Macedonia. It explains why justifiable shortages of stocks are not subject to VAT. It identifies the purchasing price of goods as the tax base for the payment of VAT. The exclusion of any provisions for the tax treatment of registered stock surpluses in the legislation is noted.

The article reports that a new rulebook on the calculation and payment of profit tax is in effect in FYR Macedonia as of December 16, 2011. The rulebook discusses procedures of calculation of profit tax payable on non-deductible expenses as well as on dividends and other distributions. It also covers other aspects of profit tax, including withholding profit tax, tax reliefs and exemptions and the methods in which the tax is calculated and paid. In addition to procedures, the rulebook likewise defines a total of 23 new tax reforms.

The article reports on the September 2011 amendment of Macedonia's Corporate Income Tax, which gives two separate taxation system options to companies with annual income above 3 million Macedonian denar and up to 6 million Macedonian denar.

The article focuses on the amendments on the value-added tax (VAT) law of the Former Yugoslav Republic (FYR) of Macedonia, which entered into force on October 11, 2011. It says that the changes related to the preferential VAT rate of 5% are the most important amendments on the VAT law. It notes that the application of the preferential rate is extended until the end of 2015. It mentions that two products/services categories that are subject to the 5% preferential VAT rate such as the raw oil for food production and the services of commercial tourist facilities. It states that VAT registrations and de-registrations procedures will be sped up, wherein the law offers options for taxpayers who applied for a VAT registration.

The article discusses the treaty signed by the FYR Macedonian government for the avoidance of double taxation and the prevention of fiscal evasion with Norway earlier in 2011. It says that the treaty is generally harmonized with the Organisation for Economic Co-operation and Development (OECD) Model Convention with some exceptions. According to the author, the treaty includes an article in regards to alimony, payments under a social security system and pensions. The terms of the withholding tax rate for interest are also discussed.

The article discusses the concepts of transfer pricing and thin capitalization in FYR Macedonia. It says that some rules and procedures in the Profit Tax Law of the country may have impact on transactions involving foreign investors. According to the author, the legislation of FYR Macedonia distinguishes between the concepts of significant control and having the possibility to exercise significant power on the decision-making process of a company.

The article discusses the law on withholding taxes in the former Yugoslav Republic (FYR) of Macedonia. According to the author, withholding tax is tax paid on corporate income that non-resident entities realise in FYR Macedonia. The author adds that the payment of withholding tax is the liability of domestic companies and individuals as well as non-resident companies and individuals that are permanently established in FYR Macedonia.

The article discusses the amendments to the Property Tax Law in Macedonia in April 2011. It says that the changes introduced by the tax authorities in the country are intended to enhance the protection of taxpayers who are involved and will be involved in property tax cases. According to the author, the amendments are aimed at improving the decision-making procedure when it comes to dealing with gift, inheritance and property taxes and enhancing the control of people over the timeframe in which decisions are to be released.

The article discusses the amendments in the Profit TaxLaw in Macedonia which were implemented starring April 2011. It says that the amendments will greatly influence foreign companies that have active offices in the country. It mentions that the changes affect the regulations and provisions related to tax base in which a tax period is equivalent to a firm's non deductible expenses with the addition of the difference between the actual and reported income. According to the author, other taxable expenses include expenses related to the use of personal vehicles for business reasons.

The article focuses on the issue of value added tax (VAT) treatment of corporate promotional spending in the former Yugoslav Republic (FYR) of Macedonia in 2011. Companies opting to distribute free promotional materials are known to deal with the narrow VAT treatment of expenses in the framework of the country's tax system. There is limitation in the provisions of the VAT law concerning opportunities for tax deductions for promotional items and giveaways.

The article reports on the possibility of value-added tax (VAT) refund for non-residents provided by the FYR Macedonian VAT Law. It says that entities without a permanent establishment in FYR Macedonia can recover VAT paid for purchases of services and goods on the territory of FYR Macedonia. According to the author, the lowest VAT amount that can be refunded is 680 U.S. dollars. The additional conditions that must be met before the VAT refund can be done are also discussed.

The article discusses the changes that were made to the income tax law in Albania in the last three months of 2010, most of which became effective at the start of 2011. It says that resident taxpayers must submit an individual annual return by April 30 of the succeeding year, which will be implemented from 2012 beginning with income posted in 2011. According to the author, all income from lotteries and gambling is taxed with a 10 percent tax on the net income from January 1, 2011. The other amendments to the income tax law are also discussed.

The article informs about regulations of the FYR Macedoniathe governing the taxation of capital gains obtained from the sale of financial instruments. Under the tax policy of Macedonia, a tax return submission is required both in cases of capital gains and capital losses within 15 days of the day that the gain/loss was incurred. The regulations imposes a 10 percent tax to capital gains obtained from the sale of financial instruments and it also require securities' purchase prices to be declared and documented. A non-resident company, on the other hand, is not required to pay taxes for gains realized from the sale of shares in resident companies.

The article reports on the double tax treaty signed by Albania and Singapore on November 23, 2010. Under the treaty, a building site, construction project or supervising of such projects for more than 12 months is considered a permanent establishment (PE) in Albania and Singapore. The treaty also includes the provision of service for an aggregate period of more than 183 days in any 12 month period corresponding to the fiscal year concerned. A withholding tax rate not exceeding five percent is imposed on dividends paid from one country to a beneficial owner who is a resident of the second country, while tax exemptions are granted for dividends paid by a company to the government in Singapore or the Council of Ministers in Albania.

This article discusses the imposition of withholding taxes in FYR Macedonia. It identifies the payment of withholding tax as the liability of domestic companies and individuals and non-resident companies and individuals with a permanent establishment in the country. It also explores the imposition of withholding taxes on the transfer of after-tax profits of a permanent establishment of a non-resident.

The article discusses amendments to value-added tax (VAT) legislation in Macedonia as of December 2010. The VAT registration threshold for companies has been increased to a turnover of 2,000,000 Macedonian denars from 1,300,000 denars. A 50% reduction in the amounts of penalties for VAT offences has been introduced. The submission of VAT returns should now be done within 25 days after the end of each tax period. The DDV-04 form has been launched and it will serve as the periodic report for taxpayer's domestic and foreign currency transactions. A company that halts its operations is still required to file a tax return with the 25th day of the month following the month of the termination of the operations.

This article reports on a double tax treaty signed by Macedonia and Morocco on May 11, 2010. The treaty seeks to avoid double taxation and prevent fiscal evasion for income taxes. It applies to the income and corporation tax in Morocco and the personal income and profit tax in Macedonia. The treaty will be effective starting January 1, 2011 upon its ratification by both countries.

The article reports on the income and capital tax treaty signed by Former Yugoslav Republic (FYR) Macedonia and Belgium on July 6, 2010, which replaces the 1980 treaty between former Yugoslavia and Belgium. Under the new treaty, provisions of the agreement signed between the two countries will not apply to taxes on income and capital covered by the new treaty. The treat provisions maintain that any site or project located in any of the two countries which lasts for over a year is considered a permanent establishment.

The article provides information on the income tax treaty signed by Former Yugoslav Republic (FYR) of Macedonia and Estonia on November 20, 2008, effective January 1, 2010 and applicable for a minimum period of five years. For dividend payments, the treaty provides a general withholding tax at source, with a 5 percent limit but can be reduced to 0 percent in some cases. A 5 percent limit for withholding tax at source is provided in the case of interest payments. An analysis of the treaty from a capital gains perspective is presented.

The article focuses on changes to the FYR Macedonian law on value added tax (VAT) in 2009. The reform is expected to affect VAT registered and non-registered firms as well as the real estate market. The taxable turnover of 1.3 million Macedonian denar (MKD) is the threshold that determines the need for a company to register for VAT. Full or partial transfers of assets are classified as supply of goods when the recipient continues performing the same trading activity under the VAT law change.