Effective marginal tax rates on corporate income in Republic of Macedonia
Effective marginal tax rates on corporate income in Republic of Macedonia

Summary/Abstract: This article is aimed for presentation of the effective marginal tax rates (EMTRs) on corporate income in Republic of Macedonia. The objective is to measure the effective marginal tax burden on the alternative investment projects by source of finance and by asset, for proper evaluation of the allocation efficiency of the domestic corporate tax system. The calculation will consider only the effect from the corporate taxes under the assumption of absence of the personal taxes. Fundamentally, the methodological frame applied for the purpose of this research is made from the effective marginal tax rate and its analytical components, according to the widely excepted Devereux-Griffith approach. In general, from this analysis we may resume that the corporate tax reform in Macedonia did achieve some improvements on its eficiency performancess and promoted itself as one of the most tax favorable in Europe. Also, the results will discover if the effects from the implemented measures in practice are correspondent to the effects found in theory.

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