According to the amendments to the Law on Profit Tax, published in the Official Gazette number 190/2016 from 17.10.2016, the Law on Profit Tax is supplemented with three new Articles: 30-a, 30-b and 30-c.
Notably, it seems that the amendments to the Law on Profit Tax is aimed for new tax stimulation of legal entities to increase the scope of giving donations of funds to the sports federations, the Macedonian Olympic Committee, the football clubs, the basketball clubs, the handball clubs and other sports clubs in Macedonia and also the active athletes from Olympic sports and the active athletes from non-Olympic sports. For the realization of benefits that are provided in the legal amendments, the clubs have to compete in a national system of competitions where there is competition in an organized league and also to have registered and active youth team (youth school for athletes).
With the anticipated benefits in the case of giving a donation described in the new Articles 30-a, 30-b and 30-c of the Law on Profit Tax, the taxpayer shall be reduced by the estimated profit tax for the amount of given donation, but each case depending on the recipient of the donation, with a different limit value which is determined from 5% to 40% of the calculated profit tax. The tax benefits provided by the new amendments can be achieved only through one of these reasons from the Law for Amending the Law on Profit Tax and the tax can not be cumulated.
On the other hand, we indicate that for taxpayers, who have used the right to reduce the calculated profit tax in accordance with the new amendments to the Law on Profit Tax, the right of tax reductions at profit tax under the Law on Donations and Sponsorships in the public services is excluded, which is provided in a way that for the taxpayer as an expense in the Таx balance for the taxation of profits shall be approved the given donations in the current year to the amount of 5% of the total revenue.
The application of the amendments to the Law on Profit Tax begins on 01.01.2017.
If you need any further information and advice regarding the published Law for Amending the Law on Profit Tax, please feel free to contact us here.
Source of the published regulations: www.slvesnik.com.mk