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.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.