New income and capital tax treaty with Slovakia.

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.