COVID-19 North Macedonia Update

North Macedonia Announces Tax Measures to Curb the Impact of COVID-19

Last Updated on 25 March 2020 at 12:30 CET

 

On 18 March 2020, the President of the Republic of North Macedonia declared a state of emergency due to the COVID-19 outbreak throughout the entire territory of the country for 30 days, with the possibility of extension.

The Ministry of Finance of North Macedonia announced a reduction of penalty interest for public duties from 0.03% to 0.015% per day.

The Government of North Macedonia announced it will subsidize social contributions for the months of April, May and June 2020 for salaries of employees in the tourism, transport and hospitality sectors, as well as for other affected companies. The subsidy per employee will amount up to 50% of the average salary paid in 2019, provided that the company:

 

  • does not reduce the number of employees below the number of employees recorded in February 2020 starting from the day when the company started using the measure;
  • does not pay out dividends during 2020 until the day of submission of the annual account i.e. financial statements for 2020; and
  • has not paid bonuses to the employees after this measure comes into force.

 

Companies that have realized profit as a result of business operations in 2020 will be obliged to return the subsidies for contributions in the amount of 50% of their profit before taxation.

Additionally, subject to the same three conditions above, companies from the tourism, transport and hospitality sectors, as well as other affected companies will be released from the advance payment of corporate income in April, May, and June.

The Public Revenue Office of North Macedonia (PRO) informed taxpayers that it will not undertake additional measures nor deliver decisions for forced collection of monetary assets based on all taxes and other public duties (fines, court taxes) for all taxpayers who have not settled their obligations towards the PRO. This measure will be valid during the time these measures and recommendations of the Government and Ministry of Health of North Macedonia are active.

The City of Skopje informed its citizens it will not undertake additional measures, including forced collection, towards all taxpayers of the City of Skopje that have unsettled debts. This measure will also be in effect during the validity of the measures and recommendations of the Government and Ministry of Health of North Macedonia.

The PRO announced that the deadline for submitting the following forms for 2019 is extended until 24 March 2020:

  • Tax balance for profit tax,
  • Tax balance on total income,
  • Tax balance of non-profit organizations,
  • Annual tax balance for determining the tax on income from self-employment, and
  • Income and expenses statement.

The Central Registry of North Macedonia extended the deadline for submitting annual accounts until 24 March 2020.

The PRO limited the time of admission of taxpayers from 10 AM to noon in the General/Regional Directorates/Departments/Counters. The PRO recommends that taxpayers use the electronic services of the PRO instead of coming in its premises.

The Health Insurance Fund and the Pension and Disability Insurance Fund of North Macedonia encourage the submission of documentation through electronic means.

The Government obliged the Ministry of Economy of North Macedonia to prepare a proposal for 100% customs duty exemption on flour products, sunflower oil, white sugar, soaps, detergents, clothing and accessories, diapers for children and adults and handkerchiefs, roll hats, textile filter masks, textile surgical covers use, surgical suits made of paper, paper masks, protective rubber suits, rubber gloves, surgical and other, disinfectants, medical alcohol, protective eyewear.

It is yet to be seen whether authorities will introduce additional tax measures to aid the economy in North Macedonia affected by the novel coronavirus.

 

 

The information in this document does not constitute legal advice on any particular matter and is provided for general informational purposes only.