HMRC Unveils Details Of New DTA With Macedonia

by Jason Gorringe, Tax-News.com, London

27 November 2006

HM Revenue And Customs on Friday unveiled details of a new comprehensive double taxation agreement between the United Kingdom and Macedonia, signed in Skopje on 8 November 2006 by Minister for Europe Geoff Hoon, and Nikola Gruevski, the Macedonian Prime Minister.

According to the UK tax authority, the new Agreement will replace an existing Double Taxation Convention that was concluded with the Federal Republic of Yugoslavia on 6 November 1981. (Both the United Kingdom and Macedonia currently honour the existing Convention.)

Among other things, the new Agreement will introduce changes to - and generally reduce - the taxation of dividends, interest and royalties received by residents of one country from sources in the other.

The Agreement will enter into force once both countries have completed their legislative procedures.

In the United Kingdom the provisions of the Agreement will take effect from 1 April (for corporation tax purposes), and from 6 April (for income tax and capital gains tax purposes) in the calendar year following the date of entry into force. In Macedonia, the provisions will take effect from 1 January in the calendar year following the date of entry into force.

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