Government officials recently announced a possible introduction of progressive taxation on personal income, which has raised a number of concerns for the business community. Initiated by companies’ reactions and through a well-coordinated effort of Macedonia 2025, AmCham and MASIT, we conducted a detailed research on this topic and prepared a position paper, presented below. The document was formally submitted to the Ministry of Finance.
When it comes to developing economies, international best practices and considerable empirical evidence speak in favor of flat tax income system as a key factor that drives inward investment. In summary, we are of the opinion that the economy will benefit from a comprehensive tax reform, based on a concerted approach in which the business sector plays significant role. This position paper is a part of a broader initiative to create dialogue between the relevant parties aimed at improving the country’s business environment and investment climate.
The Position Statement on the Potential Introduction of Progressive Taxation of Personal Income can be found HERE!