The deadline for tax exemption of incomes from savings account interest is extended. The government has adopted amendments to the Personal Income Tax envisaging the deadline to be extended until Macedonia joins the European Union, rather than in early 2013.

This was announced by Deputy PM and Finance Minister Zoran Stavreski saying the measure was extremely positive. “It will contribute to stimulating and retaining the positive trend regarding savings accounts as well as to providing fresh capital for the economy.”

“The measure is beneficial for the overall economy and for banks providing stable deposit base with which economic subjects will be financed. This is also a positive measure for the citizens because the entire income provided through interest rates will be theirs and non taxable. For the economy it is positive because tax will not be paid for their deposits and at the same time there will be a bigger deposit potential thus making it easier to get loans,” FinMin Stavreski told a press conference on Tuesday.

Total deposits in Macedonia amount to 238 billion denars with 71% (171 billion denars) being savings accounts. There is a rise of 9% in saving accounts compared to September 2011 and a rise of 5.7% in relation to total deposits.

“In Macedonia there has been a positive trend regarding savings. Even though being faced with the consequences of the European crisis, in Macedonia there has been a rise in savings after the government took measures by increasing insured savings accounts. Now the government once again intervenes with a measure tax exempting savings account rates that enables the positive trend to continue in the future,” Stavreski said.