AmCham Macedonia Spring 2014 (Issue 41) | Page 27

ANALYSIS Rapid Legal Change Continues From the beginning of the year until the official announcement of elections on March 5th, 2014, the Macedonian Parliament managed to adopt changes to more than 140 laws using the short or urgent procedure. Even though the amendments refer to laws in different areas and only some of them affect the business community, this would additionally burden companies regardless of their size. Tighter Deadlines Introduced for Foreigner Visa and Work Permit Processing The State Market Inspectorate to Undergo Much Needed Reforms Although in December last year, a law firm was engaged to do a comprehensive analysis and give their recommendations to amend and simplify the procedure for work and employment of foreigners, the Government decided to modify the existing legal solution in order to increase ESA’s responsiveness, as one of the main institutions involved in this process. With the new changes, within 5 working days from the date of submission of complete application, the Employment Agency is responsible to: In accordance with its responsibilities, the State Market Inspectorate (SMI) is considered one of the main institutions responsible, among other important things, for protection of intellectual property rights. Unfortunately, lack of personnel, technical equipment and clearly defined legal framework are the main remarks to SMI’s work in this area. With the latest amendments, defining strict selection criteria for the director of the institution, employment and further promotion of employees, this institution will be completely reformed. With these changes and the establishment of the inspection council (government body responsible for coordinating the work of all inspectorates) is expected to strengthen SMI’s capacity to effectively carry out their responsibilities. • Issue work permits; • Extend work permits; • Revoke work permits and issue certificates. While this change is welcomed, given that the old deadlines of 45 days contributed greatly to this lengthy and opaque process, there is still much work to be done to ensure the timely, consistent, efficient and professional administration of this important process for international companies working in the country. New Tax Introduced to Fund Local Filmmaking The Macedonian Film Industry Law was recently amended to introduce a tax of 1% on the income of companies that rebroadcast television programs (e.g., cable operators, Internet protocol television providers, satellite TV providers) as well as to internet service providers. The taxes collected will go to the State-run Macedonian Film Agency (www.filmfund.gov.mk). It is still unclear whether the tax will apply to total company gross revenues or only to those revenues generated by the above-named activities. Emerging Macedonia Spring 2014 Issue 41 27