India signed a Double Taxation Avoidance Agreement (DTAA) with Macedonia on Dec 17, 2013, to prevent income tax evasion by entities in both the countries, a move that is also expected to increase economic cooperation.
The agreement provides that taxation of dividend, interest and royalty in the source country will not exceed 10 per cent. It has a ”limitation of benefit” article which provides that the benefit of this agreement will not be available to an entity which has been formed mainly to obtain benefits under the agreement.
