AmCham Macedonia Fall 2015 (Issue 47) | Page 19

ANALYSIS “Financial Discipline” Implementation Advances AmCham recently gathered feedback from 26 companies to gauge the impact of Macedonia’s Law on Financial Discipline, originally adopted almost 2 years ago. The key findings included: • 65% of respondents said the Law had had “no significant impact“ on their business; 27% said “Bad debt collection has gotten more difficult”; • 65% of respondents said they expected the Law to have “No significant impact” in 2015-16; • 81% of respondents said they did not believe the misdemeanor provisions defined in the Law are appropriate and justified; for late payers. Businesses have complained that the Law was vague, overlapped with other laws and confused key terms, thereby lessening their sense of legal certainty. This was further exacerbated by a delay of 11 months for the release of the Law’s official guidelines. The Law limits the ability of companies to set their own invoice payment terms and introduces new penalties for late payers. • 50% of respondents said that the exclusion of State institutions and public enterprises from the Law’s provisions negatively impacted their companies liquidity in some way; and • 53% of those respondents who said that have outstanding claims from a State institution have claims that have remained unsettled for up to 180 days. The Law limits the ability of companies to set their own invoice payment terms and introduces new penalties The Law was subsequently amended in December 2014 to define the inspection procedure, clarify the implementation period as well as precisely which transactions would be impacted. However a number of business’ concerns remained unaddressed. While the Law obligates the Public Revenue Office (PRO) to begin carrying out payment-related inspections this year, the Ministry of Finance (MoF) responded that it cannot provide data on such activities until at least mid-2016. However, AmCham has confirmed that the PRO now requires all notaries to notify them when they notarize an invoice that remained unpaid longer than 60 days. Financial Discipline-related inspections that are independent from notary notifications are scheduled to start in 2016. Thus, there is no sign that the Government intends on recalling this Law, as they have with a number of others this year. Continued on page 34 Fall 2015 Issue 47  19