19th May 2021, Skopje – Minister of Finance, Fatmir Besimi and Her Excellency, the Swiss Ambassador to North Macedonia Sybille Suter Tejada signed the Protocol amending the Convention for Avoidance of Double Taxation, with respect to Taxes on Income and on Capital, between Republic of North Macedonia and Switzerland in line with the new Tax Convention of the Organization for Economic Cooperation and Development (OECD) and BEPS standards. Protocol will provide for strengthening the existing provisions pertaining to avoidance of double taxation with resect to taxes on income and on capital between both countries, thus also achieving greater tax transparency and fair tax treatment.
-Strengthening the provisions for avoiding double taxation will enable better monitoring of the tax base and fair profit distribution between the two countries Setting clear rules for avoiding double taxation, as well as preventing the granting of treaty benefits in inappropriate circumstances, is of exceptional significance for the bilateral economic cooperation, as well as for building a fair taxation system – Minister of Finance Fatmir Besimi said.
– Switzerland welcomes the amendment to the respective Convention for Avoidance of Double Taxation, being in line with the latest international standards, thus strengthening the economic relations among our countries. Switzerland is committed to implementing the latest international standards in their network of double taxation agreements – Her Excellency, the Swiss Ambassador to North Macedonia Sybille Suter Tejada said.
Protocol stipulates for the exchange of information between the respective tax authorities of both countries to be harmonized with the international standards set under the OECD Convention and BEPS standards, being also aimed at simplifying the practical implementation of the actions regulated under the Convention. Moreover, it is also focused on implementing BEPS standards.
In August 2018, Republic of North Macedonia became the 117th Member State of BEPS Inclusive Framework, thus having the opportunity to work together, on an equal footing with the other countries, on undertaking measures aimed at preventing tax avoidance, as well as protecting its own tax base. BEPS packages comprises 15 measures, determining actions that will help the countries in coping with the opportunities for tax avoidance. Republic of North Macedonia actively takes part in implementing this package of measures.
Over the years, Republic of North Macedonia has signed Agreements on Avoidance of Double Taxation with 49 countries, the majority of which are as per obsolete standards. Harmonization of the respective agreements with the new OECD Convention provides for additional protection against double non-taxation.