FYR Macedonia: New Profit Tax Law to enter into force in 2015
International Tax Review is part of Legal Benchmarking Limited, 4 Bouverie Street, London, EC4Y 8AX
Copyright © Legal Benchmarking Limited and its affiliated companies 2024

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

FYR Macedonia: New Profit Tax Law to enter into force in 2015


Elena Kostovska

The amended Profit Tax Law of FYR Macedonia, published in the Official Gazette No. 112 on July 27 2014, will enter into force on January 1 2015. The law will be applicable retroactively to 2014 as well, insofar as the determination of the profit tax base for the fiscal year 2014 is concerned. According to the new law and contrary to current practices (introduced as anti-crisis measures in 2008), the profit tax base will revert back to being equal to the actual profit (total revenue less expenses) plus any non-deductible expenses (the so-called "expenses unrecognised for tax purposes"). The change is expected to impact the profit tax base of all companies across all industry sectors. An additional novelty in the law – that goes against the trend of expanding the tax base – is the reduction of the profit tax base for the amount of business-related investments made in tangible and intangible assets (with the exception of cars, furniture, audiovisual equipment and art).

It is worth noting that the currently available profit tax exemption for companies with total annual turnover not exceeding MKD 3 million ($62,000) will remain in practice as will the option for a 1% tax on the total annual turnover (as opposed to the 10% rate on the standard tax base). As a reminder, this second option is available only to companies with total annual turnover between MKD 3 million and MKD 6 million.

Elena Kostovska (elena.kostovska@eurofast.eu)

Eurofast Global, Skopje Office

Tel: +389 2 2400225

Website: www.eurofast.eu

more across site & bottom lb ros

More from across our site

There will always be multinationals trying to minimise tax by pushing the boundaries of their cross-border arrangements, Rob Heferen claimed
HMRC’s attempts to crack down on fraudulent tax relief claims are well-meaning, but the agency risks penalising genuinely innovative businesses, writes Katy Long of ForrestBrown
Argentina, Brazil, Mexico and South Africa are among the countries the OECD believes could benefit from the simplified TP rules
It comes despite an offshore enabler penalty existing in the UK throughout the entire period
It is extraordinary that tax advisers in the UK can offer their services without having to join a professional body. This looks like it is coming to an end, Ralph Cunningham writes
Meet the esteemed judges who are assessing the first-ever Social Impact Awards
The ‘big four’ firm has also vowed to spend more on nurturing junior talent; in other news, Blick Rothenberg has hired a pair of tax partners
However, making APAs harder to reach could ‘pose problems’ for UK businesses
Microsoft's director of benefits taxation tells ITR about having no normal days, family inspiration and what makes tax cool
The 61-year-old has run the firm’s UK business since 2020
Gift this article