On 25 September 2023, North Macedonia officially published amendments to the Profit Tax Law in Official Gazette No.199. According to the amendments, the requirement to submit transfer pricing reports is terminated with effect from 1 January 2024. As a result, the transfer pricing (TP) report is not required to submit to the tax authorities by 30 September.
Under the new requirement, taxpayers are now only required to prepare TP report and submit it upon request from the tax authorities. Additionally, taxpayers who prepare a TP report are required to submit an annex with information of related party transactions along with their annual corporate tax return. This requirement of such annex applies to tax returns submitted in 2024 for the fiscal year 2023.
With this amendment, a significant change has been introduced regarding life insurance premiums paid by employers on behalf of their employees. Under the new provision, such premiums will no longer be eligible for tax deductions, even though they were previously deductible.
