Technological – Industrial Development Zone (TIDZ) is a free zone in aspect of Tax Laws in Republic of Macedonia. Each domestic or foreign natural or legal person – user of TIDZ may use the tax incentives by investing in the zone.
Tax Exemptions and Incentives
- Corporate Income Tax – The user of the zone is exempt of paying Corporate Income Tax in a period of 10 years, if in a period of 2 years after the year of receiving the Decision for start of performing, under the conditions determined by the Low, starts with performing of the activity in the area.
*** Withholding Tax – The users of TIDZ which are performing payments of incomes to foreign legal person in Republic of Macedonia or abroad, are obliged in the same time of the payment of the income to withhold and pay the tax in amount of 10%, unless if it is otherwise regulated by the International agreements for avoiding of double taxation (more information on http://www.ujp.gov.mk/en/vodic/category/693).
- Personal Income Tax – The user of the zone is exempt of paying Personal Income Tax for salaries of the employees in period of 10 years, from the start of performing of the activity in the zone, i.e. from the first month in which the user will perform the payments of salaries, regardless of the number of employees.
- Value Added Tax – The user of the zone is exempt from VAT on trade of goods and services in TIDZ (except trade intended for final consumption) and for import of goods in TIDZ (under condition the goods are not intended for final consumption).
Conditions for Using of the Tax Incentives
The user of the zone should:
- Perform new activity: production activity; activity in the area of the information technology (software development, hardware assembly, digital recording, computer chips, etc), scientific research and production based on new technologies with high environmental standards, services that are directly related to the import of goods which are imported in to the zone (under condition the goods not to be intended for final consumption);
- Does not have received and not paid tax and customs responsibilities;
- Not be subject of a bankruptcy proceeding; and
- To submit Request for tax exemptions and incentives (on all basis) to the Public Revenue Office through Directorate for Technological Industrial Development Zones.
Deadline and Required Documentation
The user of the zone submits the Request to the Public Revenue Office through Directorate for Technological Industrial Development Zones till 31st of March, at latest, for each previous year of performing in the zone for which the tax exemptions and incentives are used. In addition to the Request the user of the zone is obliged to submit the following proofs:
- Agreement for performing activity with the founder of the zone;
- Decision from Customs Office for fulfilling of the conditions for conducting of customs supervision according the Customs Law and Decision by the Directorate for TIDZ for start with performing of activity of the user;
- Yearly account and tax balance for the previous year together with the Form SPD – Structure of the incomes by business activity;
- Proof from Central Register for the current status of the user creditworthiness (not older than six months);
- Certificate issued by competent authority that the user of the zone does not have received and not paid tax and customs responsibilities;
- Certificate issued by competent court and Central Register that the user of the zone is not subject on ongoing bankruptcy or liquidation procedure.
- Certificate by the founder of the zone that it does not have due, but unsettled liabilities in accordance with the tariff for fees for rendered services of the founder and the tariff for fees for rendered services of the user
- If user of the technological industrial development zone has concluded several agreements on awarding state aid for productive initial investments required to submit a decision issued by the Agency for Foreign Investments and Export Promotion of the Republic of Macedonia or the Directorate for TIDZ or the ministers without portfolio in charge of attraction of foreign investment.