In July 2000 a new Securities Law was adopted in the Parliament. With this law regulatory framework regarding the securities market is basically set up closer to the EU Investment Directives, broadening the responsibility and authorities of SEC in regulating and supervising the securities market and introducing the full dematerialization of all issued securities and establishment of a Central Securities Depositary in Macedonia. Pension reforms are underway and it is expected that by the end of 2001 implementation of the new pension system in Macedonia will start. At the beginning of 2001 further changes in the tax regulations have been made in order to create more favorable environment for foreign investments. Domestic and foreign companies have equal position in doing business in Macedonia.
Legislation allows fully repatriation of profits.
The profit tax rate may be reduced by the proportion of the foreign capital for the first 3 years, starting from the date of the first investment done. There is no capital gain tax for all securities transactions in the next 5 years. There is no taxation on securities transactions.