Taxation in ICT industry – How to stimulate workforce growth in ICT? - Marand

September 19, 2019, USAID’s Partnership for Better Business Regulation Project organized a Forum for stimulation of the workforce growth in the ICT industry.

“MASIT actively handles all the problems and challenges ICT companies face in their everyday work. This event is our response to companies’ needs for further improvement of the business climate in the ICT sector and as for stimulation of the growth of the workforce in this industry. We hope that this event will emphasize the most significant challenges ICT companies face, as well as that it will contribute to creation of concrete measures for improvement of the business climate, that will lead to growth of the workforce in the ICT sector”, Ms. Biljana Prlickova, COO of MASIT has emphasized.

Marijana Andric as moderator of the panel session presented three major groups of issues affecting the ICT companies:

1. Stimulation of “investments” in the workforce:

–> Tax recognition of costs incurred in improving working conditions (sports and recreation, team-building, vacation, child care)
–> Additional tax exemptions for education expenses
–> Tax incentives for education donations (following the example of sports donations) to stimulate investment in education of ICT workforce

2. Limitation to a maximum contributions base:

–> 50% higher than the average salary paid in the ICT industry

3. Labor Law that fits the needs of ICT industry:

–> Remote work regulation
–> Flexibility to measure / pay per performance
–> Employer / employee electronic communication

Apart of representatives of the Ministry of Finance, Ministry of Labor and Jovan Zafiroski – professor at the Faculty of Law in Skopje, main guests were consultants from Serbia and Croatia, presenting experiences of ICT workforce tax treatment in their countries. Some of their best practices might be easily implemented in Macedonia, which is a goal we strive for.