North Macedonia: Draft law on temporary solidarity (windfall profits) tax on fossil sector

Main elements of new proposed tax

Main elements of new proposed tax

The government submitted to the parliament the draft law on the temporary solidarity (windfall profits) tax on the fossil sector.

The main elements of the new proposed tax include:

  • Taxable entities: Corporate income tax taxpayers that for 2022 had revenues of more than MKD 615 million (approximately €10 million) 
  • Tax base: Difference between tax base for 2022 (determined in field 49 from the corporate income tax return) and the average of the tax bases for 2021, 2019 and 2018 increased by 20%, or if more beneficial for the taxable entity, difference between the average of tax bases for 2022 and 2021, and the average of the tax bases for the 2019, 2018 and 2017 increased for 20%
  • Tax rate: 30% 
  • Filing: Tax is reported with form DB-DS, due for submission within 45 days from the deadline for submission of the annual accounts 
  • Payment: Due 31 May 2023 

The draft law provides further specifics in cases of reorganizations or in cases of zero tax base reported.

Read a February 2023 report prepared by the KPMG member firm in North Macedonia


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