Tax rates in North Macedonia

Company Tax

10% flat-rate

Tax Rate For Foreign Companies

North Macedonian resident companies are taxed on their worldwide income, while non-resident companies are taxed on the profit realised through their permanent establishment in the country.
A company is deemed to be resident for tax purposes if it is established under North Macedonian law or if its legal seat is in North Macedonia.
A unilateral foreign tax credit is available for foreign tax paid, up to the amount due for corporate income tax in North Macedonia.

Capital Gains Taxation

Capital gains are considered as corporate income and are taxed at the standard corporate rate.

Main Allowable Deductions and Tax Credits

Deductions include (under certain conditions) depreciation, interest expenses, entertainment expenses, employees’ related expenditures (when paid within the amount prescribed by law and collective agreement).
Donations are deductible if the annual amount borne by the taxpayer is below 5% of its overall revenue, whereas sponsorship expenses are deductible if below 3% of the overall revenue. Certain donations related to sports are deductible up to half of the assessed income tax.
The monthly allowances and expenses to the managing board members are also deductible, up to 50% of the average gross monthly salary paid out in the country in the previous year. The monthly allowance for practical trainings of students can be deducted up to MKD 8,000 per person; whereas the internship allowance deduction could be in the range between 42% to 100% of the minimum net monthly.
The collective insurance of the employees for work-related injuries is tax-deductible. Expenses for gifts, business dinners, recreation, and entertainment are taxable, up to 90% of the annual amount borne by the taxpayer.
Taxable income is decreased by the amount of profit reinvested in fixed assets.
Net operating losses can be carried forward against future profits for a maximum period of three years (five years for losses realised for 2020 and 2021). The carryback of losses is not allowed.

Other Corporate Taxes

Other taxes include:

• real property tax (at municipal rates ranging from 0.1% to 0.2%)
• transfer tax (at municipal rates between 2% and 4%)
• social security contributions: 7.5% for health insurance; 0.5% for additional health insurance contributions; 18.8% for the pension and disability fund; and 1.2% for unemployment are paid by the employer on behalf of the employees. The minimum on which contributions are calculated is set at half of the average national monthly gross salary (MKD 21,755 for the year 2022); whereas the monthly maximum contribution is set at sixteen times the average national salary (MKD 696,144)
• garbage collection fee (rates vary)
• communal taxes (rates vary)
• motor vehicles tax (rates vary).

Other Domestic Resources

Ministry of Finance

Consult Doing Business Website, to obtain a summary of the taxes and mandatory contributions.

Tax Rate

Allowable Deductions and Tax Credits

Compulsory health, pension, unemployment, and other related contributions borne by individuals are fully deductible.
For the year 2022, the law allows a personal exemption of MKD 105,456 on employees' personal incomes.

Special Expatriate Tax Regime

North Macedonian tax residents are taxed on their worldwide income, whereas non-residents are taxed on their North Macedonian-sourced income.
Individuals who have a permanent dwelling available in North Macedonia or who have been present in the country for more than 183 days within any 12-month period are deemed to be resident for tax purposes.
There is no special tax regime for expatriates in North Macedonia.