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Rights and obligations of the taxpayer

in North Macedonia

Rights and obligations of the taxpayer

According to the Macedonian legislation, a taxpayer is a person who:

  • owes tax;
  • guarantees tax;
  • should pay or charge tax for third party account;
  • should file a tax return and / or tax explanation;
  • must keep the company’s financial books or records, or
  • must fulfill other obligations that are imposed on him by tax laws.

The Law on Tax Procedure precisely defines the rights and obligations of the taxpayer and these are the following: 

Obligations:

1.         Tax application submission 

The tax application refers to realized revenues, realized expenses, profits, assets, turnover of goods and services or other transactions from significance for determining the tax. The taxpayer is obliged to submit a tax application in the Public Revenue Office. A call for submission tax application can be made through a public announcement and it must be filed by a person who will be called by the Public Revenue Office. 

2.         Obligation to keep financial books and records

According to Article 45 of the Law on Tax Procedure, as financial books are listed the following ones:

  • trade books, accounting documents, records and inventories, annual account and receipts financial statements, notes on applied accounting policies and other documents related to the organization;
  • business letters and correspondence;
  • postage bills 

According to the provisions of Article 46, the process of conducting reports and financial books must be in accordance with the regulations in the field of accounting in order for a third professional third party to be able to have an overview of the taxpayer's work.

3.         Deadline for keeping record and financial books 

  • trade books, accounting documents, records and inventories, annual accounts and financial statements, notes on applied accounting policies and other documents related to the organization; business letters and correspondence and postage accounts must be kept neatly within 10 years.
  • other documents, if they are relevant for taxation must be kept for 5 years

4.         Reporting facts important for taxation such as:

  • Establishment;
  • Relocation and termination of the company or the beginning of performing economic activity;
  • Change of residence, as well as other facts whose application is legally prescribed;

5.         Participation of taxpayers in determination of the factual situation

  • If the factual situation relating to activities abroad needs to be assessed in relation to taxation, then the taxpayer it must fully clarify the factual situation. Moreover, the taxpayer must provide the necessary evidence and use all legal and factual possibilities.

Rights:

The right to refuse providing information for facts important for taxation of the taxpayer have:

  • Members of the taxpayer;
  • Priests, lawyers, notaries, tax advisors, auditors, doctors, medical staff, who have obtained information through their profession;
  • Persons who enjoy immunity accordingly the Law;