Announcements, News, Activities - One
THE HOLDING COMPANY AS A FORM OF CONNECTING THE COMPANIES FOR BETTER BUSINESS RESULTS- Initiative of the Economic Chamber of Macedonia for legal standardization of the holding companies via determining a fiscal regime adjusted to the specific characteristics of their functioning
The holding company as a form for connecting the companies in order to achieve better business results is an organizational form that exists and successfully functions in a large number of countries within the European Union and beyond. The growth and the promotion of the work of the business entities sets the need of connecting the companies as a priority and the possibility of these companies to be regulated with a special regime of functioning that will be adjusted to their specific characteristics. The regulation of the issues that refer to its functioning, particularly the fiscal treatment of these entities can have a significant contribution to the promotion of the functioning of the economic system, as it was stated at the press-conference of the Economic Chamber of Macedonia (7.11.2017).
In the European legislations, in which the work of the holding is standardized, several fiscal benefits are being prescribed. Almost in all stated legislations there is a 100% of tax exemption for dividends and capital gain is foreseen, without for a minimum time period of the ownership of the shares to be requested or conditions for a minimum share due to taxation.
Due to the above stated, the Economic Chamber of Macedonia proposes the functioning of the holding companies, to be terminologically harmonized with the legal regulation that regulates the connection of the companies stated in the Company Law, where certain individual aspects for the functioning of the holding companies (i.e. in accordance with the existing terminology: connected companies), related to the control and supervision of their work, reporting, management, submitting financial reports and book keeping.
Elena Milevska Shtrbevska, MSc., director of operations of the Economic Chamber of Macedonia, at today's press conference informed that the Chamber will submit an Initiative to the Government of the Republic of Macedonia, with which it will propose the laws that regulate the taxation should determine a separate fiscal regime for the holding- companies and it is proposed that the regulation of this fiscal regime to have this criteria as a foundation:
The request of the Economic Chamber of Macedonia for changing and amending the Rulebook for accounting is in that direction and in accordance with Article 469, paragraph 2 of the Company Law so it is proposed that the changes of the international standards for financial reporting (MSFI and MSS) that have been revised and amended on several occasions by the Board of international accounting standards, to be incorporated in the Macedonian legislation.
Namely, in accordance with Article 469, paragraph 2 of the Company Law, the international standards for financial reporting and the international standards for financial reporting for small and medium entities are updated on an annual basis in order for them to be harmonized with the currently valid standards, and are changed, amended or adopted by the Board for international accounting standards. The above mentioned standards in Macedonia are not part of the valid legislation, i.e. after 2009, they are not translated, and as such, they are not published in the official media of the Republic of Macedonia, so that they can be applicable in the domestic legislation. This creates greater problems in the practice and in the work of the business entities and for the domestic companies and foreign investors and all of this affects the legal security and the overall interest in investing and developing the domestic economy.
In that direction, the Economic Chamber of Macedonia deems that the proposals for the improvement of the fiscal treatment of the holding will contribute to the promotion and the work of the business entities in the country, which will provide further economic development of the system.
Elena Milevska Shtrbevska, MSc.
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