At the end of March 2017, the German Federal Council has approved the protocol amending the tax treaty concluded with FYR Macedonia. The amending protocol was signed by both countries during November 2016 and amends the treaty signed in 2006.
The protocol’s goal is to intensify the cooperation in the realm of tax collection. With the purpose in mind, it basically amends Article 26 of the double tax treaty, which is related to exchange of information. The additional paragraphs of the previously existing article provide for the obligation for one country to use its information collecting measures in order to obtain information requested by the other country (subject to the standard limitations defined in paragraph 3 of the same article) without the ability to decline the provision of such information in cases when there is no domestic interest. With the amendments, the countries are also not allowed to reject providing information to the other country in cases when such information is held by a bank or other financial institution.
Pending ratification by the FYR Macedonian Parliament, the Protocol will enter into force once published in the Official Gazette and will become applicable from the following calendar year.