Elena Kostovska The tax treatment of dividends paid in FYR Macedonia largely depends on the residency of the dividend-receiving entity. Effective July 2010, a principle of exemption was introduced for certain types of dividend distributions. Before that date, all distributed dividends were taxed with the 10% flat rate corporate income tax before distribution. With the change in 2010, all forms of profit distribution made to resident legal entities became exempt from corporate income tax, effectively eliminating the tax burden on the transfer of profits between resident companies. The government had promoted this as an anti-crisis measure and has not amended it since.
June 30 2012
