The role in the integration process of international double taxation agreements – the case of the Republic of Macedonia

Abstract

This article reviews the impact of the tax requirements in one country – the Republic of Macedonia – on EU integration processes. It focuses on international double taxation and its effects at the global level. In addition, it emphasises some specific aspects relating to international bilateral treaties on avoiding double taxation as a means of overcoming the problems of international double taxation in the Republic of Macedonia. The wider context implies the need for an open approach in the Republic of Macedonia, while the article also addresses the introduction of a marketoriented economy and accession to the European Union. Here, the implementation of a flat tax regime in the Republic of Macedonia takes on additional interest since it might be seen to be obstructive to the processes of EU harmonisation and integration. Furthermore, some of the agreements set out limitations on taxation that seem to be in contravention of EU directives in the area of corporate taxation and, therefore, need to be re-thought as the Republic approaches EU membership.