1 / 19

January 2013

MINISTRY OF FOREIGN AFFAIRS OF THE REPUBLIC OF MACEDONIA. REPUBLIC OF MACEDONIA: BUSINESS CLIMATE. January 2013. Minister, H.E Nikola Poposki. Why Macedonia?. Competitive Location. Investor - friendly Government. Excellent Infrastructure. Competitive & Educated Workforce.

brendan-simpson
Download Presentation

January 2013

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. MINISTRY OF FOREIGN AFFAIRS OF THE REPUBLIC OF MACEDONIA REPUBLIC OF MACEDONIA: BUSINESS CLIMATE January 2013 Minister, H.E Nikola Poposki

  2. Why Macedonia? CompetitiveLocation Investor - friendly Government Excellent Infrastructure Competitive & EducatedWorkforce Investment Incentives Higher Profits & Increased Competitiveness

  3. Location and Transport Infrastructure • Two Pan-European corridors: • East-West Corridor 8 • North-South Corridor 10 • Road network:4,370 km • Railway network:925 km • Two international airports: • Skopje • Ohrid • International ports*: • Thessalonica (Greece): 80 km • Durres (Albania): 150 km • * Distance from Border

  4. Political and Economic Outlook • Political, monetary and macroeconomic stability • Strategically located for future business expansion • First country in SEE to sign a SAA with the EU in 2001 • EU and NATO candidate country • FTAs with numerous countries

  5. 3rd BEST REFORMER IN THE WORLD World Bank’s Doing Business 2012 Report 3rd BEST REFORMER IN THE WORLD World Bank’s Doing Business 2010 Report BEST CONSECUTIVE REFORMER OVER THE LAST THREE YEARS IN SOUTH EASTERN EUROPE Based on the World Bank’s Doing Business Reports in 2010 , 2011 and 2012 2009 Tax Misery & Reform Index 4thINTOTAL TAX RATE EASE OF PAYING TAXES 2012 PwCandWorldBankGroupStudy 5th MOST TAX FRIENDLY COUNTRY IN THE WORLD Forbes Magazine

  6. Ease of Doing Business 2012 Global Rank

  7. 2012 Index of Economic Freedom World Rankings

  8. Ease of Paying Taxes 2012 Total Tax Rate World Rankings PwC and World Bank Group Study

  9. Foreign Investment Regime • Macedonian Constitution guarantees fair treatment of foreign investors • Complete protection of the ownership rights of foreign investors • Republic of Macedonia is member of MIGA (Multilateral Investment Guarantee Agency) • Investment protection treaties with numerous countries • 100% foreign ownership of a company allowed • No restrictions for repatriation of profits

  10. Economic Indicators GDP GROWTH(%) INFLATION Low inflation: avg < 2% annually over the last 10 years 2007: 2.3%; 2008: 8.3%; 2009: -0.8%; 2010: 1.6%; 2011: 3.9% EXPORT BY YEAR (US$ bn) CURRENCY Macedonian Denar pegged to the DM/€ for the last 15 years (€1= MKD61.3) FDI BY YEAR (US$ m) BUDGET DEFICIT & STATE DEBT AVERAGE GROSS SALARY IN 2011 CREDIT RATINGS 2011 Standard & Poor’s: BB Fitch: BB+ € 497 per month Budget Deficit, 2011: 2.6 % of GDP State Debt, Q2.2012: 29 % of GDP Source: National Bank of the Republic of Macedonia

  11. Unbeatable Fiscal Benefits • 10% Corporate & Personal income tax (among lowest in Europe) • 0% Tax on retained earnings • Double taxation treaties with many European countries • 0% tax for operation in a Technological Industrial Development Zone • Real estate taxes at 2% - 4% • VAT at 18%, with 5% on specific items • FTAs with EU, EFTA, CEFTA countries; Turkey and the Ukraine; providing access to over 650m customers General VAT Rates Corporate Income Tax Personal Income Tax (highest rate) Macedonia* Macedonia* Macedonia Czech R.* Turkey Romania Romania* Slovakia Czech Republic* Slovakia Hungary Czech Republic Poland Ukraine Ukraine Hungary Poland Slovakia Turkey Poland Romania Croatia Croatia Turkey Hungary Croatia Ukraine * Flat rate Source: PricewaterhouseCoopers (Taxes at a glance 2012), National Investment Promotion Agencies

  12. Social Security Contributions Macedonia - Social Security Contributions 32.5% 28.4% 27% 27% 27% Comparison - Social Security Contributions 27% 33.5% 31.2% - 34.1% 37.2% 37.2% 44% 45% 48.6% 39.8% - 49.7% 44.5% - 55.7% Source: PricewaterhouseCoopers (Taxes at a glance 2011), National Investment Promotion Agencies

  13. Average Gross Monthly Salary Average gross monthly salary (€) in selected countries of Central and Eastern Europe in 2011 Average gross monthly salary (€) Source: The Vienna Institute for International Economic Studies (wiiw)

  14. Competitiveness for Investments in Macedonia Price Level Index for Investments Price Level Index for Construction Source: Eurostat, December 2010

  15. Sustainable Work Force Supply • 41.5% of population under 30 • High intellectual capital • 65% increase in total number of undergraduate degrees in 2009 compared to 2006 • 85+% of high school graduates enrolled in universities in 2008 • Multiple vocational high schools in each city • Tailor-made training programsthrough Vocational Schools or Universities • 6% of GDP spent on education Number of enrolled students in Colleges and Universities Number of graduates in Colleges and Universities

  16. Excellent Language Skills • Every child in Macedonia begins to learn English in the first grade of primary school • Two foreign languages are mandatory in high school: English, and either German, French, or Russian • English is also taught for two years at University level • Regional languages (Serbian, Croatian, Bulgarian, Albanian and Greek) are widely spoken Source: State Statistical Office of the Republic of Macedonia (Education 2009/2010) and Ministry of Education and Science

  17. Cooperative institutions • Business oriented Government • Welcoming and decisive government ready to serve investors

  18. Governmental Agency “Invest Macedonia” at Your Service… One-stop shop and project management approach VIP Investment tour Locations HR Companies, construction, real estate, tax advisory and consulting Universities and Reference Company visits Creating linkages with local and central Governments Navigate the legal requirements Ensure success!

  19. T h a n k Y o u MINISTRY OF FOREIGN AFFAIRS OF THE REPUBLIC OF MACEDONIA DIRECTORATE OF ECONOMIC DIPLOMACY Filip II Makedonski 7 1000 Skopje Tel. 389 2 3 123 044 Fax. 389 2 3 115 790 E-mail:ded@mfa.gov.mk web: www.mfa.gov.mk AGENCY FOR FOREIGN INVESTMENTS AND EXPORT PROMOTION OF THE REPUBLIC OF MACEDONIA AT YOUR SERVICE AT YOUR SERVICE Nikola Vapcarov 7 1000 Skopje Tel.: + 389 2 3100 111 Fax: + 389 2 3122 098 e-mail: fdi@investinmacedonia.com web: www.investinmacedonia.com

More Related