North Macedonia: Distribution of Dividend Documentation

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As the deadline  until which resident companies in North Macedonia can distribute dividends based on their 2020 financial result (September 30, 2021) is approaching, it is worth noting that there is a specific set of documentation required to be submitted to the bank through which the distribution of the dividend will be made, applicable to cases where the dividend recipient is a non-resident (either a legal entity or a physical person). 

The commercial banks are required, by National Bank legislation, to request the following documentation in order to approve a dividend payment transfer: 

• Proof of registration of the initial founding capital of the non-resident in the Registrar of FDI at the Central Registry of North Macedonia (for participations exceeding 10%) 
• Proof of ownership of the shares / capital  
• Corporate decision for dividend distribution  
• Current status document (issued by the Central Registrar) 
• Tax clearance statement issued by the Public Revenue Office 

We advise resident companies planning a dividend distribution to consider the length of procedures for obtaining the above documentation from authorities to meet the payment deadline. 

Additionally, we remind affected parties that for the purposes of avoiding double taxation, the Public Revenue Office issues a certificate of paid withholding tax on dividend distribution in North Macedonia but also requires proof of tax residence in case the foreign dividend-recipient is a resident in a country with which North Macedonia has signed a double tax treaty with a preferential tax rate.  

For more information please contact our Client Relationship Manager Mrs. Elena Kostovska at our office in North Macedonia at skopje@eurofast.eu 

Eurofast is a regional business advisory organisation employing local advisors in over 23 cities in South East Europe & Middle East (SEEME). The Organisation is uniquely positioned as one stop shop for investors and companies looking for professional services in South East Europe & Middle East.  

24/6/21