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India Macedonia Signed DTAA
Dec 18, 2013

India and Macedonia signed a new agreement for the avoidance of double taxation and the prevention of fiscal evasion (DTAA) with respect to taxes on income.

The Agreement was signed by Mr. Salman Khurshid, the Minister of External Affairs on behalf of India and Mr. Nikola Poposki, the Foreign Minister of Macedonia on behalf of the Republic of Macedonia. It will provide relief to taxpayers from double taxation and thereby, stimulate the flow of capital, technology and personnel between both the countries and will further strengthen the economic relationship between the two countries.

The highlights of the agreement are:

  • The agreement provides relief from double taxation to residents of India earning income in Macedonia and residents of Macedonia earning income in India.
  • The agreement provides that taxation of dividend, interest and royalty in the source country will not exceed 10 %.
  • The agreement provides for taxation of business income in the source country if the taxpayer has a permanent establishment there.
  • The agreement has a ‘limitation’ of benefit article which provides that the benefit of this agreement will not be available to entity which has formed mainly to obtain benefits under this agreement.


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