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North Macedonia: New Amendments to the Law on Financial Support of Investments

North Macedonia: New Amendments to the Law on Financial Support of Investments

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In August 2021, the Law on Financial Support of Investments (“Law”) in North Macedonia has undergone several amendments. Changes are focused on easing the conditions for application, affecting the balanced regional development, and speeding up the procedures for payment of the granted funds.

These amendments expand the types of financial support granted for technological development and research, offer support for investment projects of significant economic interest, and offer support for taking over companies that are facing difficulties and increasing the competition in the market.

They prescribe changes in the conditions for granting financial support for companies that have been investing during the COVID-19 pandemic with a transitional provision valid in 2021 for allowed revenue decline of up to 15% in 2020.

A change has been made in the scope of companies that will be able to conclude a contract by further adjusting the conditions in the area of ​​license holders, producers of excise goods, performers of public interest activities, dedicated production, etc.

Another important amendment is the regulation of balanced regional development, where companies implementing investment projects in the less developed planning regions will receive additional financial support. The additional assistance will be calculated as a percentage difference between the region with the highest value of GDP per capita and the value of GDP per capita of the region in which the investment is realized.

In order to improve the liquidity of companies, from 2022, the principle of payment in two tranches will be introduced (the first tranche in the amount of 50% of the approved amount for financial support, and the second tranche will be paid additionally, during the current year).

The information in this document does not constitute legal advice on any particular matter and is provided for general informational purposes only.

By Veton Qoku, and Ljupka Noveska Andonova, Independent Attorneys at Law in cooperation with Karanovic & Partners

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