has signed several double taxation agreements
with countries worldwide and continues to develop the business and economic relations with other states too. A recent double tax agreement
was signed with Belgium and entered into force this year in January. Avoiding the double taxation of profits in Macedonia
is the main aspect of such an arrangement and ensures that businesses are properly placed on the market. Our company formation representatives in Macedonia
can offer foreigners the needed support at the time of company incorporation in Macedonia
and can also provide tax advice
The countries which signed double tax treaties with Macedonia
The Republic of Macedonia signed 33 double taxation agreements with the following countries: Albania, Egypt, Austria, Belarus, Bulgaria, Belgium, Netherlands, Croatia, Czech Republic, Denmark, Italy, Iran, Latvia, Germany, France, Serbia and Montenegro, Hungary, Moldova, China, Poland, Romania, Russian Federation, Slovenia, China, Switzerland, United Kingdom, Sweden, Turkey, Ukraine, Qatar, Finland, Spain, Lithuania.
entered into several Free Trade Agreements with countries like Liechtenstein, Switzerland, Iceland, Norway, Serbia, Montenegro, Kosovo, Albania, Bosnia and Herzegovina. The Macedonian authorities are currently developing the investment protection treaties which involve a wide range of countries for which the business matters are mandatory. In certain cases, these are the same countries for which a double taxation treaty
has been signed. Such agreements intend to protect the foreign investors and their assets on the Macedonian market.
The main provisions of tax treaties signed by Macedonia
The double taxation agreements in Macedonia
regulate the taxation of incomes, dividends, interests, capital, and royalties for foreign companies with establishments in this country, and mention the conditions through which these provisions are applied. The following information is important to foreign investors in Macedonia
• the withholding taxes are lower for a signatory country, and in particular circumstances, it is not imposed on interests, royalties, and dividends.
• the withholding tax is set at 10% or lower, depending if the company has non-resident shareholders from a state which signed a tax treaty with Macedonia;
• in some cases, the withholding tax may involve a 15% rate;
• if such provisions are not mentioned in a treaty, a Tax Exchange Information Agreement can be signed.
Who can benefit from the double tax treaties signed with Macedonia
All investors with origins from the above-mentioned countries who would like to set up a company in Macedonia
, regardless of the type of business, can take advantage from the provisions of the double taxation agreements signed by Macedonia
. The main condition is to have company establishments in this country as a foreign investor.
What is a permanent establishment?
Any office, branch
, workshop, factory or building considered a fixed place for business in Macedonia
is called a permanent establishment. In other words, your business office or any related property through which the activities are carried can be considered permanent establishments
. We remind that the Articles of Association comprise information about the business address of your firm in Macedonia
Do natural persons benefit from DDTs?
Yes, individuals living and working in Macedonia are exempt from a double taxation on their registered revenues. Our team of company formation consultants in Macedonia can provide you with complete information about this matter.
The OECD model tax convention
The double taxation agreements signed by Macedonia follow the OECD model tax convention. OECD or the Organization for Economic Cooperation and Development oversees the economic and business activities of countries worldwide. To take full advantages of the double tax conventions and their endowments, the foreign taxpayers need to offer a binding proof that the taxes are already paid in the home country. In this sense, a valid certificate of a taxpayer is normally issued by the foreign tax authorities and then registered with the financial authorities in Macedonia.
If you want to establish your business presence on the Macedonian market
and if you want to know more about the taxation structure
before registering a company in Macedonia
, we suggest you contact
our company incorporation agents in Macedonia