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Economy and Banking Sector of Macedonia

Withholding Tax

Withholding taxes are imposed at source of income and are often applied to dividends, interest, royalties, rent and similar payments. The rates of withholding tax are often reduced by double taxation agreements.

Withholding Tax Rates in Macedonia: 0.0 - 10.0%

Withholding tax rates applied on payments of interest and dividends in Macedonia are shown in Table 1.

Dividends Interest
Natural Persons (residents) 0.0 %0.0 %
Natural Persons (non-residents) 10.0 %10.0 %
Table 1. Withholding tax rates in Macedonia.

Double Taxation Agreements

Double Taxation Agreement (DTA) is an agreement between two or more countries for the avoidance of double taxation.

DTAs of Macedonia: 27 Signed Agreements

Macedonia signed DTAs which already came info force with the following jurisdictions:

AT Austria
BE Belgium
BG Bulgaria
HR Croatia
CZ Czech Republic
DK Denmark
EE Estonia
FI Finland
FR France
DE Germany
HU Hungary
IE Ireland
IT Italy
LV Latvia
LT Lithuania
LU Luxembourg
NL Netherlands
NO Norway
PL Poland
RO Romania
SK Slovakia
SI Slovenia
ES Spain
SE Sweden
CH Switzerland
GB United Kingdom

There are also several agreements between Macedonia and other jurisdictions which were signed but haven't yet come into force:

BE Belgium

Information Exchange

There are 3 ways for jusrisdictions to exchange information on tax matters:

  • spontaneously;
  • on request;
  • automatically.

Spontaneous exchange of information is provision of information that is forseeably relevant to another party without a request being previously sent.

Tax Information Exchange Agreements (TIEAs) enable exchange of information on request relating to a specific tax investigation, either criminal or civil.

Automatic information exchange allows jurisdictions to exchange information automatically, without having a specific tax investigation.

Automatic Exchange: No Commitment to Start

Macedonia didn't sign the automatic information exchange agreement and didn't indicate a timeline of the start of the automatic information exchange.

Automatic Excnange: 0 Bilateral Agreements to Receive Information

Macedonia has not singed any bilateral agreements to automatically receive information.

Automatic Excnange: 0 Bilateral Agreements to Send Information

Macedonia has not singed any bilateral agreements to automatically send information.

Further Information

FATCA

Foreign Account Tax Compliance Act (FATCA) which became law in the United States in March 2010, focuses on reporting made by foreign financial institutions about financial accounts held by US taxpayers or foreign entities in which US taxpayers hold a substantial ownership interest. The FATCA-reporting is facilitated by Intergovernmental Agreements (IGAs).

FATCA Status in Macedonia
No IGA

Although there is no IGA between Macedonia and the United States, banking and financial entities operating in Macedonia have reached the agreement with the IRS to participate in FATCA on an individual basis.

Further Information