Author: Europe News Desk

The Ministry of Finance is firmly committed to its fiscal consolidation efforts as outlined in the Fiscal Strategy for 2025-2029. In 2024, the country achieved a budget deficit of 2.5 billion denars lower than anticipated after the budget rebalancing, bringing it down to 4.4% of GDP instead of the projected 4.9%. By the end of 2024, North Macedonia’s public debt was also less than projected, concluding the year at 61.9% of GDP. As of January 2025, following the successful repayment of Eurobonds issued in 2018, the debt figure dropped below 60% of GDP to 58.4%. Finance Minister Gordana Dimitrieska-Kocokoska shared…

The Limits of Punitive Taxation and Enforcement Efforts to combat illicit tobacco markets and reduce smoking rates have long relied on high taxation and strict enforcement. However, experience shows that excessive taxation and heavy-handed regulations often push consumers toward black markets, as seen with illicit vaping products smuggled across Europe. Beyond enforcement, a balanced tax and regulatory framework is needed—one that encourages consumers to choose legal, taxed, and less harmful alternatives rather than resorting to illicit products. The Economic and Social Challenges of High Tobacco Taxes Tobacco taxation is one of the most regressive forms of taxation, disproportionately affecting low-income…

The European Union has finalized a landmark agreement to modernize VAT reporting and compliance through mandatory electronic invoicing (e-invoicing) by 2030. The decision is part of the VAT in the Digital Age (ViDA) initiative, which seeks to enhance tax transparency and combat VAT fraud across member states. Key Changes Under the New VAT Framework The EU Economic and Financial Affairs Council has approved several major digital reforms to VAT rules, including: These changes aim to streamline tax collection, prevent fraud, and simplify VAT reporting for businesses operating across EU borders. Impact on Businesses: What to Expect 1. E-Invoicing and Digital…

The UK government has unveiled a new whistleblower incentive scheme, promising significant financial rewards for individuals who expose tax fraud and avoidance by wealthy individuals and multinational corporations. The Treasury’s initiative, modeled on the successful US system, aims to strengthen tax enforcement by offering informants up to 25% of additional tax revenue recovered due to their disclosures. This policy shift underscores the government’s push to close the tax gap, which currently stands at £6.5 billion annually. How the Scheme Compares to the US Model The US Internal Revenue Service (IRS) has long operated a robust whistleblower program, paying out $89…

Understanding the tax obligations regarding dividend claims is crucial for individuals involved in trust management. According to the Personal Income Tax Act of Hungary (1995, CXVII), the social tax law, and civil code, significant considerations arise when dividend payments designated for trust managers come into play. According to Section 9 (3) of the Personal Income Tax Act, individuals entitled to dividends must possess membership rights within a company on the date resolutions pertaining to dividends are made. Consequently, if a private individual has the right to exercise these membership privileges at that time, they remain entitled to the dividends, regardless…

Croatia has made strides in equalizing the tax treatment for both residents and non-residents. The agreements signed with over 65 countries to prevent double taxation play a crucial role in this regard, ensuring that all taxpayers are treated fairly. Overview of Croatia’s Key Taxes To help taxpayers navigate the Croatian tax landscape, here are the primary types of taxes, along with their respective rates: Type of TaxTax RateCorporate Income Tax (Profit Tax)10% for revenues up to €1 million; 18% for revenues of €1 million or more.Withholding Tax on Income15% in general; 10% for dividends and performers; 25% for certain taxable…

The Import Control System 2 (ICS2) represents a significant advancement in the management of cargo information, aimed at enhancing security within the global supply chain. This system requires all Economic Operators (EOs) importing goods to or transiting through the European Union (EU) to submit safety and security data via the Entry Summary Declaration (ENS). By utilizing the ENS, authorities can perform thorough safety and security risk analyses, enabling more targeted and effective controls over goods entering the EU. The Importance of ICS2 ICS2 plays a crucial role in identifying high-risk consignments and intervening when necessary, all while allowing the secure…

As the landscape of international business evolves, a recent statement from Donald Trump has reignited discussions about the practices of U.S. pharmaceutical companies operating in Ireland. Experts suggest that rather than closing manufacturing facilities in Ireland, these firms are more inclined to shift profits back to the United States. Understanding the Profit Shift Dynamics Aidan Regan, a political economy professor at University College Dublin, asserts that Trump’s criticism regarding the trade imbalance caused by U.S. pharmaceutical companies in Ireland holds merit. He pointed out that for years, clues indicating such profit-shifting behaviors have been visible. Trump’s remarks come amidst a…

In a bold statement, President Donald Trump has articulated his ambition to eliminate income taxes for individuals earning under $150,000 annually, as shared by Commerce Secretary Howard Lutnick. “I know what his goal is,” Lutnick said, emphasizing the commitment to ensure that “no tax for anybody making under $150,000 a year” is a priority. The Implications of Tax Elimination This sweeping proposal has the potential to significantly affect a large portion of the American populace. Data from the U.S. Census Bureau reveals that in 2022, approximately 93% of Americans aged 15 and older earned less than $150,000. While this is…

In a significant shift in trade policy, the United States has implemented a 25% tariff on all steel and aluminum imports. This decision has sparked widespread reactions, with Canada and the European Union (EU) responding with new tariffs on American goods worth billions of dollars, raising concerns about a potential global trade war. What are Tariffs and How Do They Work? Tariffs are taxes levied on goods imported from other countries. Companies responsible for bringing these foreign products into the US must pay these taxes to the government. Typically calculated as a percentage of a product’s value, a 20% tariff…