FYR Macedonia/March 2013
Because of the private sector’s low liquidity as a result of the global financial downturn, companies frequently find themselves reaching for the last available tool to collect uncollected receivables, the forceful collection mechanism.
It is worth noting that the procedure to forcefully collect outstanding debt is regulated by certain deadlines after which the said debt becomes obsolete; therefore is considered a bad debt. The following information is of interest to creditors in the private sectors as well as tax debtors that have outstanding liabilities towards the Public Revenue Office in FYR Macedonia.
Should the legal deadline for commencing a procedure for forceful claim collection have passed, the debtor has the right to file a court appeal and stop the procedure.
A legal period of one year within which a forceful collection procedure can be started is provided for the provision of communication services (including radio, TV, postal services, telecommunications).
Municipal taxes (including property taxes, annual company municipal taxes and personal income taxes) become obsolete within two years of the prescribed payment date as do any administrative fees.
Within a period of three years after the date of the claim creation, the following types of receivables become legally obsolete: Claims between parties that have a mutual written agreement for the provision of goods/services, property lease as well as net salaries.
A legal timeframe of five years (as of the date the liability has arisen) is provided as a regular or forceful collection period for, among others, the following debt categories: Long and short term credit claims, claims for the provision of products/services between legal entities and physical persons; legal advice service provision claims, construction services’ provision claims and customs claims.
It is also worth noting that all outstanding tax payments (corporate or personal, including social contributions) and additional tax related claims that the Tax Authorities have from the private sector become obsolete 10 years after the tax liability has arisen. According to the Law for Tax Procedures, after this time has passed, the tax debt is written off.
Eurofast Global, Skopje Office, FYR Macedonia
+389 2 2400225