In the Official Gazette of the Republic of North Macedonia No. 96/19 from 17.05.2019 an Authentic Interpretation of Article 25 paragraph 1 item 10 of the Law on Property Taxes was published.

Namely, the Article 25 paragraph 1 of the Law on Property Taxes reads as follows:

Immovables trade tax shall not be paid: 

1) for trade in immovables in the procedure of expropriation; 

2) where a foreign diplomatic, i.e. a consular mission transfers the right of ownership of immovables, under the condition of reciprocity; 

3) where the right of ownership is transferred for the purpose of paying the obligations on the basis of public revenues in the procedure for coercive collection;

 4) for trade in immovables between state bodies, between state bodies and municipalities, and between municipalities; 

5) for trade in immovables in the confiscation procedure; 

6) for trade in apartments in state ownership, provided that the sale and purchase agreement does not regulate which party assumes the obligation for tax payment; 

7) where the right of ownership of immovables is transferred to state bodies for the purpose of claims collection in bankruptcy and enforcement procedures; 

8) where the right of ownership of immovables is transferred to the provider of lifelong support who, in relation to the receiver of the support, is in the first hereditary order and only for the part of the immovables that they would inherit according to the Law on Inheritance even without providing support; 

9) for the first trade of residential buildings and apartments that is performed in a period of five years after the construction, for which value added tax has been calculated; 

10) where immovables are invested in the capital of trade companies;

11) for trade in securities, in terms of the Law on Securities; and 

12) in the cases where the right of ownership of immovables is transferred to the banks as trustees for the purpose of monetary claim collection, provided that they sell the acquired property within three years.

According to the given Authentic interpretation, the provision of Article 25 paragraph (1) point 10) of the Law on Property Taxes should be interpreted in the manner that when a status change, such as acquisition, merger and division of a company, is made that entails transfer of property (immovables) in the company’s capital, it shall be considered investment of immovables into the capital of the trade companies, so the taxpayers are exempted from payment of immovables trade tax.

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