North Macedonia Announces Tax Policy Reform Strategy

The North Macedonian Government Dec. 1 announced a tax policy reform strategy to ensure fairness in taxation, which would apply on a phased-in basis starting Jan. 1, 2023. The announcement includes: 1) the continued imposition of the 18 percent VAT rate; 2) revisions to the list of luxury items and the application of the 10 percent preferential VAT rate to them; 3) a clarification that there wouldn’t be any new taxes or increases in any taxes; 4) the abolition of the progressive taxation, from Jan. 1, 2023; 5) the continuation of a single 10 percent individual income tax rate from ...