CORPORATE TAX INCENTIVES IN TRANSITORY ECONOMIES: CASE OF THE REPUBLIC OF SERBIA AND REPUBLIC OF MACEDONIA
Journal Title: MEST Journal - Year 2019, Vol 0, Issue 1
Abstract
Tax incentives are one often used tool by low-income countries for attracting capital and money into their economies. Usually, formerly closed economies during their transition to open-market economies use different forms of tax and other types of incentives to attract foreign companies and their capital to be placed into these economies. The case of the former Yugoslav republics, Serbia and Macedonia, is an interesting example of incentives established with the aim to reconstruct and rebuild industry and infrastructure, to get better welfare, etc. Of the various incentives in the pool, tax incentives are used the most. The authors of the article analyze the policy of corporate tax incentives in the Republic of Serbia and Republic of Macedonia since 2000, which have been changing in forms and scope as a consequence of the Serbian/Macedonian tax system’s reform. The authors stressed differences between the two countries, which are mostly influenced by the negotiation process with European Union and the need to harmonize national legislation with European Union rules: in Serbia tax incentives in the sphere of corporate taxation were very generous at the beginning of the period; the similar situation was in Macedonia. However, after the negotiation process between the European Union and Macedonia was “frozen” in 2005 and the negotiation and accession process with Serbia has been opened, the situations in these countries have become different: the tax incentives’ policy in Macedonia stayed generous comparing with Serbia which had to be narrowed because of the European Union pressure (to avoid being accused of harmful tax competition).
Authors and Affiliations
Snezana Stojanovic
Keywords
Related Articles
- EP ID EP510535
- DOI 10.12709/mest.07.07.01.14
- Views 109
- Downloads 0
EFFECTS OF MIGRATION ON EUROPEAN ECONOMY
The author of the article deals with the reasons for the existence of obstacles preventing the successful integration of migrants in the democratic societies of the EU member states. The article examines the various aspe...
ECONOMIC EFFECTS OF DYNAMICS IN MIGRATION PROCESSES
Considerable interstate movements of the labor force are taking place in nowadays world economy due to the reasons of economic and non-economic character. It makes the governments all over the world find mechanisms and t...
AN ANALYSIS OF THE SUPPLY CURVE: DOES IT DEPICT HOMOGENEITY AMONG ITS CONSTITUENT ELEMENTS? ANOTHER REJOINDER TO NOZICK.
The supply curve embodies prices and quantities offered for sale of a good. But need each element of this supply to be interchangeable? If so, then the person to whom the supply curve applies much necessarily be indiffer...
LOGISTICS MANAGEMENT IN THE ARMED FORCES OF THE SLOVAK REPUBLIC
Logistics in the Armed Forces of the Slovak Republic (AF SR) now gains importance and is irreplaceable in the comprehensive security of the complex combat activities of troops. Logistics management is implemented in acti...
A LOW-COST SOLAR FARM MONITORING SYSTEM BASED ON CLOUD DATABASE
Renewable energies have become important sources of electricity generation in modern times, with solar energy being one of the best types of such energy since solar radiation can be converted directly into electricity. T...