As announced on its web site, the Government of the Republic of North Macedonia on its 28th session held on 25 March 2020, adopted certain Decrees with the force of law, thus enacting some of the measures announced previously. Some of those Decrees were published in Official Gazette N.79 from 26 March 2020 and entered into force on the same day. A summary of some of the enacted measures is provided below:
Decreased rate of the penalty interest
The Decree with the force of law in respect to the application of the Law on Tax Procedure provides that the penalty interest for public liabilities is reduced by 50%, i.e. from 0,03% to 0,015%.
Also, it has been enacted that the Public Revenue Office (PRO) will not publish the list of debtors with overdue tax liabilities for April, May and June 2020.
Extension of the term for convening and holding an annual meeting of shareholders
The Decree with the force of law in respect to the application of the Law on Trade Companies provides for extension of the term for convening and holding an annual meeting of shareholders, for the duration of the state of emergency. Such extension also refers to the already initiated procedures for convening and holding an annual meeting of shareholders.
Exemption of certain categories of taxpayers from payment of advance instalments for corporate income tax and personal income tax purposes
The two Decrees in respect to the CIT and PIT Law regulate for the duration of the state of emergency the exemption from the obligation to make advance tax instalments due for the months March, April and May 2020 of certain categories of taxpayers (the measures in respect to PIT apply to individuals conducting independent business activities).
The measures will apply with regard to taxpayers conducting business activities in affected sectors (as per the National Classification of Business Activities (НКД Рев.2), as follows:
In order the above exemption to apply, the taxpayer should not decrease the number of its employees for the period starting from the date the respective Decrees enter into force until the expiry of three months after the Decrees’ effect has expired, except in cases of death, retirement or in the case of termination of the employment by the employee.
In respect to CIT taxpayers, there are certain additional requirements introduced that should be considered such as: (i) no dividend are paid to shareholders, and (ii) no award for business success (profit participations, bonuses) or other type of annual awards are paid to employees and members of management and supervisory bodies, from the date the Decree entered into force until the day the exemption from advance instalments applies (15 June 2020).
The above measure is also to apply to other taxpayers who have been affected, who in ddition to the above noted requirements, fulfil one of the following conditions:
The exemption is subject to a request for exemption to be submitted by the taxpayers through the e-tax system (e-PDD PIT taxpayers), which is to be confirmed by the tax authorities within 15 days of receiving the request.
Taxpayers who have used the measure but have not fulfilled the conditions above, are obliged to pay the respective instalments plus late payment penalty interest.
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