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How will the latest tax amendments to the civil society organizations’ performance reflect?
Amendments to the Personal Income Tax Law III
In the last months of 2006 the Government of the Republic of Macedonia initiated a series of amendments in the so-called tax legislation. As a result, the surroundings and working conditions of the economic subjects and civil society organizations will drastically change. That is why in the following few issues the Civic World shall explain the amendments to the existing laws on Tax Profit, Value Added Tax and the Personal Income Tax Law along with the beginning of application of the Law on Donations and Sponsorships and introduction of the so-called flat tax.
In this issue read the third part of the amendments to the Personal Income Tax Law.
Income from Copyrights and Industrial Property Rights
Standardized costs 60% of the gross income - sculptures, tapestries, plastic art, art ceramics and stained glass
For such kinds of incomes the costs are recognized in the amount of 60% of the gross income.
The computed rate is computed as follows:
2006
computed rate = 0.15 x (1-0.60) / 1-[0.15x(1-0.60)] x 100 = 6,3829
2007
computed rate = 0.12 x (1-0.60) / 1- [0.12 x (1-0.60)] x 100 = 5,042%
According to this way of computation, computed (deduced) rate of PT is applied to the amount that shall be paid to the person, thus having the amount of personal tax. We will present it through examples:
- if the payment is on net amount, the computation shall be:
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Until 31.12.2006 |
From 01.01.2007 |
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Net amount for payment |
10,000 |
10,000 |
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Computed rate |
6,383% |
5,042% |
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Personal tax |
638 |
504 |
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Gross income |
10,638 |
10,504 |
- if the payment is on gross amount, the computation shall be:
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Until 31.12.2006 |
From 01.01.2007 |
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Gross income |
10,638 |
10,504 |
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Percentage of standardized costs |
60% |
60% |
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Tax base |
4,255 |
4,201 |
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Regulated rate |
15,000% |
12,000% |
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Personal tax |
638 |
504 |
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Net amount for payment |
10,000 |
10,000 |
Standardized costs 50% of the gross income - art photography, mural painting and three-dimensional painting in the following techniques: frescoes, graphics, mosaic, intarsia, enamel, intarsiated and enameled objects, costume design, fashion design and textile craftsmanship (woven textiles, printed textiles, etc), paintings, graphic arts, industrial design and production of models, small plastics, artistic scenographic designs, scientific, expert and publicist works, translations of literary works, music and cinematography works and restoration and conservation works in the field of culture and art
The computed rate is computed as follows:
2006
computed rate = 0.15 x (1-0.50) / 1-[0.15x(1-0.50)] x 100 = 8,1081
2007
computed rate = 0.12 x (1-0.50) / 1- [0.12 x (1-0.50)] x 100 = 6,383
According to this way of computation, computed (deduced) rate of PT is applied to the amount that shall be paid to the person, thus having the amount of personal tax. We will present it through examples:
- if the payment is on net amount, the computation shall be:
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Until 31.12.2006 |
From 01.01.2007 |
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Net amount for payment |
10,000 |
10,000 |
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Computed rate |
8,108% |
6.383% |
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Personal tax |
811 |
638 |
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Gross income |
10,811 |
10,638 |
- if the payment is on gross amount, the computation shall be:
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Until 31.12.2006 |
From 01.01.2007 |
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Gross income |
10,811 |
10,638 |
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Percentage of standardized costs |
50% |
50% |
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Tax base |
5,406 |
5,319 |
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Regulated rate |
15,000% |
12,000% |
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Personal tax |
811 |
638 |
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Net amount for payment |
10,000 |
10,000 |
Standardized costs 30% of the gross income - for performing art works in the field of classical music, ballet, opera, theatre and film, reciting, shooting films and preliminary sketches of tapestry and costume design, translations (literary translations excluded), lectures and similar intellectual activities.
The computed rate is computed as follows:
2006
computed rate = 0.15 x (1-0.30) / 1-[0.15x(1-0.30)] x 100 = 11,7318
2007
computed rate = 0.12 x (1-0.30) / 1- [0.12 x (1-0.30)] x 100 = 9,170%
According to this way of computation, computed (deduced) rate of PT is applied to the amount that shall be paid to the person, thus having the amount of personal tax. We will present it through examples:
- if the payment is on net amount, the computation shall be:
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Until 31.12.2006 |
From 01.01.2007 |
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Net amount for payment |
10,000 |
10,000 |
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Computed rate |
11,7318% |
9,170% |
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Personal tax |
1.173 |
917 |
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Gross income |
11.173 |
10.917 |
- if the payment is on gross amount, the computation shall be:
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Until 31.12.2006 |
From 01.01.2007 |
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Gross income |
11.173 |
10.917 |
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Percentage of standardized costs |
30% |
30% |
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Tax base |
7.821 |
7.642 |
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Regulated rate |
15% |
12% |
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Personal tax |
1.173 |
917 |
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Net amount for payment |
10,000 |
10,000 |
Standardized costs 25% of the gross income - for stage programs in the field of popular and folk music, for other author works and works of industrial property that are not referred to in items 1 to 6 of Article 41.
The computed rate is computed as follows:
2006
computed rate = 0.15 x (1-0.25) / 1-[0.15x(1-0.25)] x 100 = 12,6761
2007
computed rate = 0.12 x (1-0.25) / 1- [0.12 x (1-0.25)] x 100 = 9,8901
According to this way of computation, computed (deduced) rate of PT is applied to the amount that shall be paid to the person, thus having the amount of personal tax. We will present it through examples:
- if the payment is on net amount, the computation shall be:
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Until 31.12.2006 |
From 01.01.2007 |
|
Net amount for payment |
10,000 |
10,000 |
|
Computed rate |
12,6761% |
9,8901% |
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Personal tax |
1.267 |
989 |
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Gross income |
11.267 |
10.989 |
- if the payment is on gross amount, the computation shall be:
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Until 31.12.2006 |
From 01.01.2007 |
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Gross income |
11.267 |
10.989 |
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Percentage of standardized costs |
25% |
25% |
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Tax base |
8.450 |
8.242 |
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Regulated rate |
15% |
12% |
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Personal tax |
1.267 |
989 |
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Net amount for payment |
10,000 |
10,000 |
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