FYR Macedonia: Bad debt and forceful collection deadlines

International Tax Review is part of Legal Benchmarking Limited, 1-2 Paris Garden, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

FYR Macedonia: Bad debt and forceful collection deadlines

kostovska.jpg

Elena Kostovska

Because of the private sector's low liquidity as a result of the global financial downturn, companies frequently find themselves reaching for the last available tool to collect uncollected receivables, the forceful collection mechanism. It is worth noting that the procedure to forcefully collect outstanding debt is regulated by certain deadlines after which the said debt becomes obsolete; therefore is considered a bad debt. The following information is of interest to creditors in the private sectors as well as tax debtors that have outstanding liabilities towards the Public Revenue Office in FYR Macedonia.

Should the legal deadline for commencing a procedure for forceful claim collection have passed, the debtor has the right to file a court appeal and stop the procedure.

A legal period of one year within which a forceful collection procedure can be started is provided for the provision of communication services (including radio, TV, postal services, telecommunications).

Municipal taxes (including property taxes, annual company municipal taxes and personal income taxes) become obsolete within two years of the prescribed payment date as do any administrative fees.

Within a period of three years after the date of the claim creation, the following types of receivables become legally obsolete: Claims between parties that have a mutual written agreement for the provision of goods/services, property lease as well as net salaries.

A legal timeframe of five years (as of the date the liability has arisen) is provided as a regular or forceful collection period for, among others, the following debt categories: Long and short term credit claims, claims for the provision of products/services between legal entities and physical persons; legal advice service provision claims, construction services' provision claims and customs claims.

It is also worth noting that all outstanding tax payments (corporate or personal, including social contributions) and additional tax related claims that the Tax Authorities have from the private sector become obsolete 10 years after the tax liability has arisen. According to the Law for Tax Procedures, after this time has passed, the tax debt is written off.

Elena Kostovska (elena.kostovska@eurofast.eu)

Eurofast Global, Skopje Office, FYR Macedonia

Tel: +389 2 2400225

Website: www.eurofast.eu

more across site & shared bottom lb ros

More from across our site

The US president has raised India’s tariff rate to 50% because of its importation of Russian oil; in other news, firms made key international tax partner hires
Tax auditors themselves had not been aware of the new TP ‘transaction matrix’ requirements, ITR hears as five German partners share their client experiences
Its features include a built-in AI assistant as well as expert insights and commentary from Deloitte specialists
AI is rapidly finding its way into tax advisory services. But how can AI be deployed responsibly, reliably, and in compliance with legal standards?
Specified taxpayers will have to apply a 19% VAT rate on services offered by third parties through their platforms; in other news, Donald Trump imposed 30% South African tariffs
A ‘quiet revolution’ in HMRC’s compliance strategy has caused Adam Craggs to rethink how to advise clients, he tells ITR
If the Reform leader becomes UK prime minister then he may follow the direction of the US in at least one significant way
Trump declared a new national emergency in issuing the order; in other news, Grant Thornton Germany is up for sale and the subject of interest from both its UK and US counterparts
The judgment, which saw Denmark's Supreme Court rely on OECD TP guidance, sets aside more than 15 years of consistent administrative practice, experts have told ITR
Belgium’s new coalition government has gone ahead with a new exit tax regime that could land it in the courts
Gift this article