Iustinianus Primus Law Review

MACEDONIAN TAX LEGISLATION COPING WITH THE EU INTEGRATION: REFORMING PROCESSES

Aleksandra Maksimovska Stojkova, Elena Neshovska Kjoseva — Wed, 05 Jun 2024 00:00:00 +0200

Four years before the Macedonian authorities submitted the request for membership in the
European Union, they have started the process of tax harmonization with the EU law. Therefore, in 2000
the legislator adopted the Law on the Value Added Tax that was completely established on the basic
principles of the VI VAT directive, considered as the raison d'etre for VAT in every EU member states.
Different from the obligation to harmonize the national legislations with the EU rules in the area
of indirect taxation, countries still preserve their tax sovereignty regarding the direct taxes. However,
contemporary supranational tax problems and challenges, such as the issue of transfer pricing, aggressive
tax planning, hybrid tax mismatches etc., require cross-border cooperation, mutual coordination and
implementation of the measures adopted on EU level. In this context, most important is the EU Anti-Tax
Avoidance Directive of 2016, which is a set of minimum standards and rules that aim to create a business
environment with fair conditions for all EU members.
For this entire pre-accession period, the Republic of North Macedonia has undertaken series of
reforms in the area of income taxes, although all the changes and amendments were or still are in
direction of “relaxing” the tax policy. Since the current corporate tax system has not provided the much
wanted and expected benefits, the country is still “suffering” from the significant tax revenue losses. It is
the right moment to undertake serious steps toward reforming the Macedonian income tax legislation.
These legal changes should be implemented regardless of the status of North Macedonia in the EU
integration process, considering that vital interest of every country is to have sustainable and healthy
public finances.

IMPLEMENTING EUROPEAN ENVIRONMENTAL LAW STANDARDS IN KOSOVO

Besnik Beqaj — Wed, 05 Jun 2024 00:00:00 +0200

As the environment increasingly emerges as a global concern, international entities like the European
Union have set forth minimum standards to address cross-border environmental impacts. Even though
these standards are binding only for the EU Member States, they are also being followed from the
potential candidate states like the Republic of Kosovo as a path towards their accession in the European
Union organization. This article analyses exactly this issue, the harmonization and implementation of
European Union Legal Instruments in the national level. The article offers a three dimensional analysis
of the Environmental National Legislation, respectively its adoption and harmonization with EU
standards, its implementation and lastly its criminalization in order of guaranteeing its application.

EU IDENTITY IN THE WESTERN BALKANS

Francesco Spera — Wed, 05 Jun 2024 00:00:00 +0200

Western Balkan countries are still facing systemic structural difficulties while complying with the European
standards on the rule of law. The article argues that similar to other new EU member states such as Poland and
Hungary, they might face similar rule of law issues once they become part of the EU if significant rule of law
reforms does not take place in the region. Therefore, considering the importance of the rule of law as a core
value of the European Union (EU) identity according to the EU Court of Justice, the study assesses to what
extent this part of EU identity is present in the Western Balkan countries. On the one hand, the article evaluates
the potential risks that the Western Balkans countries might face in light of the binding and not-binding
instruments adopted by the European Union for protecting the rule of law. On the other hand, it sheds some
light on the state of play of the implementation of the rule of law in the region according to its new definition
provided by the EU Court

INTRODUCING GLOBAL MINIMUM EFFECTIVE TAX RATE - CHALLENGES FOR THE MACEDONIAN TAX SYSTEM

Marinela Stefanovska Petrovska — Wed, 05 Jun 2024 00:00:00 +0200

This paper analyses the challenges for the Republic of North Macedonia, as a developing country, of
the implementation at national level of the global minimum corporate tax rate introduced at the end of
2022 on a European level with the Council Directive on ensuring a global minimum level of taxation
for multinational enterprise groups and large-scale domestic groups in the Union (Pillar Two Directive).
The Pillar Two Directive codifies in the EU law the OECD/G20 Two pillar solution to address the tax
challenges arising from the digitalization of the economy. The global minimum tax is introduced
through the global anti-base erosion rules (GloBE rules) which are an important shift in international
taxation policy. These rules apply to both multinational enterprises (MNEs) and large-scale domestic
groups with a combined group income of €750 million or more. GloBE rules are enforced in cases
where the effective tax rate (ETR) of the MNEs and their constituent entities in a specific jurisdiction
falls below 15%. In this case, a top-up tax is imposed to ensure that the ETR in each jurisdiction is
brought up to 15%. The Directive outlines two mechanisms through which this top-up tax may be
implemented: the income inclusion rule (IIR), which mandates a top-up tax on the ultimate parent entity
(UPE) for all constituent entities with a jurisdictional ETR below 15%, and the undertaxed profit rule
(UTPR), which serves as a safeguard when the UPE cannot be a subject to a qualifying IIR or if the
parent entity is unable to collect top-up tax for other reasons. Additionally, the Directive offers the
option to apply a qualified minimum domestic top-up tax (QMDTT), which is remitted to the Member
State for the constituent entities situated within their jurisdiction in situations when those entities are
subject to ETR within the respective jurisdiction that is lower than 15 %. This rule acts as a backstop
for the UPE's overall liability for top-up tax. The Pillar Two and the designed GloBe rules constitute a
mechanism that is expected to curtail tax competition in corporate income tax, concurrently ushering in
the global minimum corporate tax rate of 15% and reducing the profit shifting and base erosion of the
MNEs. This paper will present the theoretical framework governing the rules of Pillar Two, elucidate
the core principles underpinning the Pillar Two Directive, and delve into the assessment of the minimum
standard from the perspective of the Macedonian tax system. North Macedonia will be affected by the
global minimum taxation initiative regardless of whether it responds with domestic implementation of
GloBe rules or not. The internationally agreed standard gives the possibility for potential tax revenues
for the hosting country of the in-scope MNEs on the one hand, and on the other for the participating
jurisdiction where their constituent entities are located when the effective tax rate falls below 15 %.

THE IMPACT OF THE PROCESS OF EUROPEANIZATION ON GENDER EQUALITY IN CROATIA

Anita Blagojević — Wed, 05 Jun 2024 00:00:00 +0200

This paper is focused on the evaluation of the impact of the process of Europeanization on gender
equality in the Republic of Croatia. In this context the evolution of constitutional and institutional
framework of gender equality in Croatia, from early days of its transition to democracy to today, will
be presented. The main hypothesis is that the interplay of international, regional and national factors,
with the leading role of the process of Europeanization, but also of strong women’s organizations,
resulted in relatively good gender equality framework. In the evolution of this gender equality
framework, or during the last two decades, Croatia developed quite solid legal and institutional
framework in the context of gender equality. This framework includes constitutionalization of gender
equality, a number of specialized laws and responsible bodies, committees, offices and coordinators
established at state, regional and local level, but also the head and independent institution of the
Ombudsperson for Gender Equality. However, there still seems to be a lot of room for improvement,
and the gap between the letter and the spirit is more than evident.
The key finding of this paper is that despite the relatively well developed constitutional and institutional
framework of gender equality in Croatia, numerous challenges and gaps in the implementation process
are still evident throughout many fields. The situation is particularly bad in the areas of political and
economic representation, gender stereotypes and sexism, and women’s sexual and reproductive rights.

SEIZING THE EU INTEGRATION IN A NEW GEOPOLITICAL ERA

Aleksandar Stojkov, Fatmir Besimi — Wed, 05 Jun 2024 00:00:00 +0200

The reshaped geopolitical context has reenergized the enthusiasm on the future round of EU enlargement.
The new four-pillar Growth Plan for Western Balkans already sent a very powerful message that the
enlargement is back on the agenda. Our study underscores the economic advantages of the EU enlargement
for the region. The European single market, the deepening financial integration, and the legal, institutional
and policy convergence have been found to contribute to growth acceleration and income convergence in
Europe. The EU accession talks would focus the minds and resources of political elites on the specific
conditions that the country needs to fulfil for the successful completion of individual chapters in the
negotiation process. Staying in the European waiting room for too long would only promote euroscepticism
and Euro-fatigue in the Western Balkans.

THE EFFECT OF THE UKRAINIAN WAR ON THE EU ENLARGEMENT PROCESS

Katerina Buckovska — Wed, 05 Jun 2024 00:00:00 +0200

Russian aggression of Ukraine has significantly altered the geopolitical landscape of Europe and brought
changes in international policy. The conflict has had far-reaching consequences for both Ukraine and
Europe but it also stirred the world economy and global policies. The conflict's impact on the process of
European integration extends beyond security and energy concerns. The large number of displaced people
along with the increasing death toll and war crimes add to the complexity of the humanitarian crisis the
conflict imposed. The war in Ukraine has certainly raised immense international attention and highlighted
the urgent need for conflict resolution. European leaders have been actively engaged in trying to reach
diplomatic solutions and have supported various mediation efforts, recognizing that a stable and peaceful
Ukraine is crucial for regional stability and integration. The EU nowadays stands across an important
decision - it must carefully consider the new geopolitical complexities concerning the potential member
states. Countries in fragile regions such as the Western Balkans may require additional attention and
diplomatic efforts in order to maintain stability and prevent destabilization that may be caused by any of
the existing historical disputes and open issues. Recent EU policies and strategies do encourage broader
efforts for speeding up the process of EU enlargement. The EU perspective offered to Ukraine and Moldova
creates an additional impetus in the euro integration process for the countries of the Western Balkans. A
stable and secure Europe aligns with the strategic policies of the USA, NATO and EU respectively. In this
context, the current geopolitical changes caused by the Ukrainian conflict could trigger stronger
enlargement efforts by the EU within the scope of the joint security and defense strategy. It seems that
Russia's invasion of Ukraine has made EU enlargement a geopolitical imperative.

THE FORM OF MARRIAGE ACCORDING TO THE RULES OF ROMAN LAW, THE CANONS OF THE HOLY ORTHODOX CHURCH AND MODERN MACEDONIAN LAW

Pance Kjosev — Wed, 05 Jun 2024 00:00:00 +0200

Marriage and the form of its conclusion in the history of marriage law according to the period are
characterized by their own specificities that are characteristic of that period and law. Thus, Roman law,
considering the importance of marriage as a pillar of the state, regulated the conclusion of marriage by
creating ways of concluding it which had been specific to the period in which it was valid. The Orthodox
Church also, as part of the one Christian Church recognized by Rome, at first was only giving blessing
to the concluded marriage, and later began to regulate it with its own rules, which made the conclusion
of marriage in the Church mandatory for its believers. Contemporary Macedonian law, which has been
relevant since the independence until today, although it has undergone minor changes, did not bypass
the conclusion of marriage, but created its own rules for the same. Although these three types of
regulations that refer to the form of the conclusion of the marriage have created their own specifics, the
idea they carry is the same, namely that the marriage should be concluded and that it should be the basis
of a new marital union ("small state i.e. a small church") on which as a basis the state will be founded
i.e. The Church will ensure its survival in times.

REGIONAL INTEGRATION INITIATIVES IN THE WESTERN BALKAN: THE BERLIN PROCESS VERSUS THE OPEN BALKAN INITIATIVE

Vanco Uzunov, Biljana Petrevska — Wed, 05 Jun 2024 00:00:00 +0200

Soon after the dissolution of the Former (SFR) Yugoslavia and the start of the transition to modern
democracies and market economies, the attempts for regional economic cooperation among the Western
Balkan countries (a region composed of Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North
Macedonia and Serbia, together called WB6) have not lacked. On the contrary, numerous initiatives
have been launched, of which the early ones started in the 1990s, but the wars in the region halted them
temporarily. Afterwards the initiatives reemerged, including the Central European Free Trade
Agreement (CEFTA 2006), coupled with — or maybe as temporary substitution for — the EU
integration process of the WB6. Most prominent of the current regional integration initiatives are the
Berlin Process and the Open Balkan. However, albeit the progress achieved, the WB region is still not
a “single market” in the full meaning of all initiatives undertaken until now. There are some simple but
forceful reasons for that. Having this in mind, the aim of this paper is to offer a short presentation of
the main activities under the Berlin Process and the Open Balkan initiatives, as well as to detect their
similarities and differences. Hence, the first part of the paper presents the basic features of the Berlin
Process and the Open Balkan, while the second one outlines the similarities and differences. In the usual
manner, the paper ends with some recommendations.

PERSONAL SERVITUDES IN CONTEMPORARY PROPERTY LAW

Tina Przheska — Wed, 05 Jun 2024 00:00:00 +0200

Personal servitudes are property law institutes with roots in Roman Law. Contemporary property law
systems in Europe have accepted this institute originating from Roman law, and have adapted it so that
it can be incorporated within their national legislations. The paper aims to examine and analyze how
personal servitudes have been adapted and incorporated into the national legislation of European
countries and how the different trajectories of development of national legislation have affected that
incorporation. Drawing from the similarities and differences in the regulation of personal servitudes in
different legal systems, the paper also aims to identify the common characteristics of personal servitudes
in contemporary property law systems in Europe.

EURO-INTEGRATION OF THE REPUBLIC OF NORTH MACEDONIA: ALIGNING WITH THE EU ACQUIS IN FAMILY RELATED MATTERS AND CHILDREN’S RIGHTS

Ignovska Elena — Wed, 05 Jun 2024 00:00:00 +0200

This paper explores the process of Euro-integration of the Republic of North Macedonia, focusing on the
aligning of its legal framework with the European Union acquis (the accumulated body of EU legislation
and regulations) in family-related matters and children’s rights. The Republic of North Macedonia's
accession to the EU is a complex process, requiring alignment with various EU policies and regulations.
This paper explores the national legal consistency in a rather sensitive field to be harmonized, outlining the
challenges and opportunities that arise during this transformative journey. By evaluating the progress made
thus far and identifying areas that require further attention, this study aims to contribute to the broader
discourse on the North’ Macedonia’s European integration.