29 September 2023
The Macedonian Parliament adopted the new Law on Solidarity Tax as well as the amendments to the Corporate Income Tax (CIT) and Value Added Tax (VAT) Laws and provided additional clarification to Article 9 paragraph 1 point 7a of the CIT Law through authentic interpretation.
Amendments to the CIT and VAT Laws and the new Law on Solidarity Tax
The draft amendments to the CIT Law and the VAT Law, as well as the draft Law on Solidarity Tax discussed in our tax alert from July 2023 (with exception of the provisions related to the application of the 5% preferential VAT rate for pellets, pellet stoves, and pellet kettles, which will continue to apply) were adopted by the Parliament. The amendments are promulgated in the Official Gazette No. 199 from 25 September 2023.
In addition, in Official Gazette No. 200 also from 25 September, the Ministry of Finance published the Rulebook on the tax return for the solidarity tax.
In the meantime, since the deadline for filing of the solidary tax return fell also on the 25 September, and since the Law was promulgated with a delay, the tax authorities published an announcement on their website, that the deadline for the submission of the tax return is postponed to 4 October 2023.
Authentic interpretation to Article 9 paragraph 1 point 7a of the CIT Law
The Macedonian Parliament issued an authentic interpretation that provides additional clarification to Article 9 paragraph 1 point 7a of the CIT Law. The authentic interpretation has the force of a law.
Based on the authentic interpretation, the provision from the law should be interpreted to mean that losses of electricity in the electricity distribution network approved by the Energy Regulatory Commission in accordance with the Law on Energy and the respective Rulebook on the manner and conditions for determining regulated maximum income and average tariffs for electricity transmission, organizing, and managing the electricity market and distribution of electricity, are considered deductible for CIT purposes.