International Tax Review is part of the Delinian Group, Delinian Limited, 8 Bouverie Street, London, EC4Y 8AX, Registered in England & Wales, Company number 00954730
Copyright © Delinian Limited and its affiliated companies 2023

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

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

kostovska.jpg

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

Lawmakers have up to 120 days to decide the future of Brazil’s unique transfer pricing rules, but many taxpayers are wary of radical change.
Shell reports profits of £32.2 billion, prompting calls for higher taxes on energy companies, while the IMF has warned Australia to raise taxes to sustain public spending.
Governments now have the final OECD guidance on how to implement the 15% global minimum corporate tax rate.
The Indian company, which is contesting the bill, has a family connection to UK Prime Minister Rishi Sunak – whose government has just been hit by a tax scandal.
Developments included calls for tax reform in Malaysia and the US, concerns about the level of the VAT threshold in the UK, Ukraine’s preparations for EU accession, and more.
A steady stream of countries has announced steps towards implementing pillar two, but Korea has got there first. Ralph Cunningham finds out what tax executives should do next.
The BEPS Monitoring Group has found a rare point of agreement with business bodies advocating an EU-wide one-stop-shop for compliance under BEFIT.
Former PwC partner Peter-John Collins has been banned from serving as a tax agent in Australia, while Brazil reports its best-ever year of tax collection on record.
Industry groups are concerned about the shift away from the ALP towards formulary apportionment as part of a common consolidated corporate tax base across the EU.
The former tax official in Italy will take up her post in April.