1. The latest trends in the process of providing services to the taxpayers Biljana Jakimova Department for taxpayers services Belgrade, November 2012 former Yugoslav Republic of Macedonia Public Revenue Office

2. Strategic goals 2 Raising the level of voluntary compliance of tax obligations. Reducing compliance costs of taxes and social contributions. Promoting professionalism, fairness and integrity of the tax administration. Increasing efficiency and effectiveness. Strengthening international cooperation with EU Member States and other countries outside the EU. Modernization and improving the services to the taxpayers, strengthening the administrative capacities, and getting closer to the EU practices and standards.

3. Channels of communication The advisory meetings are organized: in the premises of taxpayers in the premises of PRO 3 Advisory meetings – providing services for tax regulations, technical questions for taxes, tax returns, rights and obligations of taxpayers…

4. The taxpayers ask questions in the field of tax regulations via: post e-mail: info.ujp@gov.mkinfo.ujp@gov.mk phone call meetings 4 Response to the requests

5. PRO web site (www.ujp.gov.mk)  Brochures by type of taxes  Tax guide ( information about tax system, direct and indirect taxes, registration procedures etc.)  Flyers  Tax calendar (annual reminder for timely submitting of tax returns within the legal deadlines)  Tax dictionary (definitions and explanation of terminology from the tax area which will help taxpayers to understand the tax matter)  Payment of taxes (tax rates, payment accounts etc.)  Other information materials 5

6. 6 Delivery of tax information via e-mail Application for getting the latest information from PRO: -Developments in the field of taxation and PRO activities -Latest announcements - Information about changes and implementation of tax regulation - Other info materials Free of charge services Covering the potential target groups in the process of information

7. Current activities  “Citizen above all”  “Citizen’s log”.  “There is no wrong door”

8. Public Relations Campaigns е-Taxes Lump-sum taxation Gross salary Writing off interest Taxation of individuals Timely submitting tax returns Legislative changes Media and target groups Answer to journalist questions Announcements TV appearances of tax experts Events (briefing, press conferences, TV statements)

9. Contact Centre  Front Office Receiving tax returns Assisting in filling in applications  Call Centre Free telephone line 0800 33 000 – operators response general questions from the area of taxes 198 line – reporting irregularities e-forms – reporting irregularities Telephone reporting of tax debt  Tax Classroom Providing advices to taxpayers Trainings for E-tax Press conferences Working meetings 9

10. 10 E-taxes for legal entities and individuals  Since 2006 – e-tax services available for large taxpayers  Since 2008 – the system e-taxes is extended for small and medium taxpayers  Since 2012 – individuals have possibility to use this system Intensified campaign and training for taxpayers

11. Simplified procedures  From 1 st of January 2013, the VAT taxpayers have legal obligations to submit VAT returns and Tax Balances electronically.  Simplified procedure for registration / deregistration (total income to 3,000,000 MKD) No obligation to submit registration/deregistration Form for annual tax on total income. The registration/deregistration PRO makes based on data submitted by the taxpayers. For registration/deregistration the PRO does not prepare decision. Taxpayers with total income form 3.000.001 to 6.000.000 MKD in 2011 have right to choose whether to pay profit tax of 10% or tax on total income of 1%. 11

12. Redesign and unification of tax returns Each tax has specific color Each tax return is simplified in order to fill in easily Unified all tax returns All publications are reviewed annually Permanent and continuous process of redesigning the tax returns and creating “user friendly“ publications

13. Increased voluntary submitting of tax returns 162.209 77.014 149.208 140.086 196.000

14. Decentralization of services  Service Points – new organizational units in PRO  Aim: The services to be closer to taxpayers Reducing the costs Higher availability of the PRO services  There are 41 Service Points on the whole territory  Services provided: Accurate, clear and timely information Assistance for application of tax regulations and tax procedures Assistance in filling tax returns Admission tax returns Indicating deadlines etc. 14

15. Newly open “Mobile Service Points” 15  1 st of November 2012 - PRO introduced “Mobile Service Points”  Purpose – services to be closer to taxpayers  3 specially equipped vans Visit places where PRO has no permanent tax offices Visit places determined in cooperation with municipalities and according to the needs of local people and businesses  What is achieved – possibility to get all tax services and information without leaving their place of residence, submitting all kinds of tax returns and taking of all documents issued by the PRO

16. Cooperation with business community  Continuous working meetings  Reviewing proposals and ideas of common interest  Aim: Deepening cooperation with business community Continuous reviewing of problems that face entrepreneurs Common resolving the problems of unfair competition and elimination of grey economy More efficient collection of taxes

17. Fiscal education of youth 17  Trainings – started in November 2010  Aim: Raising the tax culture Increasing awareness and knowledge among young people Improving citizens' tax habit Acquiring basic knowledge for the tax system Acquiring professional knowledge Until now, 900 trainings have been conducted

18. Tax Academy of PRO 1 st Phase – PRO staff 2 nd Phase – Employed in state institutions 3 rd Phase – Legal entities 4 th Phase – Tax Administration from Southeastern Europe Phases of development: Aim – introducing a system and methodologies for training, learning and developing of the PRO employees and all other interested parties, by which it will be provided continuous education for specific topics from taxation area.

19. Evaluate the Administration 19 The citizens evaluate the officials in the administration regarding their work. By making the choice, message is sent to the Manager of the Section for the satisfaction of the service provided.

20. Besides in paper, the invoices to be issued in electronic form. Project Е-VAT Easier, faster and more convenient reporting the status changes for tax purposes and updating data. Project E-Register Future activities in PRO Project E-Reminder Sending SMS and email notification to taxpayers as a reminder and enhancing the collection of individual tax accounts. Project One-stop-shop system Increasing the efficiency through electronic exchange of documents between institutions.

21. Thank you!