The Finance Ministry announced that Macedonia will sign on to a plan favored by the US, through the OECD, to get developing countries to increase their income tax levels to at least 15 percent.
Macedonia saw its manufacturing and IT sectors grow tremendously after it lowered its income tax rate to flat 10 percent in 2007, and the Zaev regime abandoned its initial plan to reintroduce progressive taxation after he grabbed power in 2017. But under the new plan, Macedonia will be among 136 countries that will commit to collecting at least 15 percent from all companies starting in 2023.
The Finance Ministry tried to present the move as something that will bring greater benefits and tax revenue from global corporations – ignoring the fact that the low tax rate is the reason some of them choose to do business in Macedonia – with its political instability, low skilled workforce and rampant corruption.
The first pillar of the treaty will re-allocate more that 125 billion USD from the 100 biggest and most profitable multinational corporations to countries across the world, ensuring the corporations pay their fair share. The second pillar will introduce a global minimum corporate tax rate of 15 percent, which will yield 150 billion USD in additional tax revenue globally, the Ministry said.