Taxes in Macedonia

The Ministry of Finance prepares tax policy and legislation. The Public Revenue Office, called UJP or Управа за јавни приходи, maintains the unified taxpayer register and EDB, the unique tax number, and manages returns, assessments, collection, refunds, audits and international tax assistance. Municipal councils and the City of Skopje set and administer several local taxes. The Customs Administration administers excise tax. Import VAT belongs to the tax system, while customs duties are a separate customs matter. Personal income tax applies to residents on worldwide income and to non-residents on income sourced in North Macedonia. Tax residence generally follows a permanent residence or presence of at least 183 days in any 12-month period; a tax treaty may resolve dual residence by considering factors such as vital interests. Taxable categories include employment, self-employment, copyright, own agricultural products, industrial property, lease and sublease income, capital income, capital gains, insurance income, other income and games of chance. The standard PIT rate is 10%, while games of chance are taxed at 15%. For 2026, the annual tax allowance is MKD 131,184, or MKD 10,932 per month for salary and pension income. A payer normally calculates and withholds PIT when paying income. Where the payer does not handle the obligation, the taxpayer uses e-PDD or e-UJP; foreign income is generally reported by the 10th day of the following month. UJP issues a pre-filled DLD-GDP annual return by 30 April of the following year. The taxpayer confirms or corrects it by 31 May; without action, it is treated as confirmed. A taxpayer requests a refund of an overpayment in the return. Self-employed taxpayers make advance payments and submit DLD-DB together with the annual income balance by 15 March, with any remaining amount payable within 15 days after the filing deadline. CIT applies to resident legal entities and foreign companies operating through a permanent establishment in North Macedonia. The regular rate is 10%. The tax base starts with accounting profit and adjusts revenue, deductible expenses, non-deductible items and qualifying prior receivables. Relief may apply to reinvested profit and to companies in technological-industrial development zones under the relevant special rules. A business with total income up to MKD 3,000,000 pays 0% profit tax under the small or micro-business regime. A business with total income from MKD 3,000,001 to MKD 6,000,000 may choose 1% of total income instead of the regular 10% profit-tax calculation. Businesses submit DB or DB-VP electronically through e-Tax after filing annual accounts with the Central Registry. The normal filing date is 15 March, any difference is payable by 15 April, and monthly CIT advances are generally one-twelfth of the previous liability, payable by the 15th of the following month. VAT covers taxable domestic supplies and imports. The general rate is 18%. A 5% rate applies to goods and services such as basic food, water, publications, agricultural inputs, medicines, medical aids, passenger transport, software and accommodation. A 10% rate applies to items such as non-basic food, catering and food services excluding alcohol, and household electricity. Exports and selected international supplies can be exempt with a right to deduct input VAT. Registration is generally mandatory when taxable turnover exceeded MKD 2,000,000 in the previous year, when expected turnover at the start of activity exceeds that amount, or when turnover crosses the threshold during the year. Voluntary registration remains possible below the threshold. DDV-01 is generally filed by the 15th day of the month after the threshold is reached. The VAT period is monthly or quarterly, and DDV-04 plus payment are due within 25 days after the period ends. A nil return is still required where the filing obligation exists. An input-tax surplus can be carried forward or refunded on request, with a stated refund target of 30 days. Under the current VAT rules, registration normally lasts at least three calendar years, subject to the applicable deregistration and official-cancellation rules. Excise tax covers alcohol and alcoholic beverages, tobacco, energy products and electricity. Liability can arise from production, import, release from a duty-suspension arrangement, storage or specified use. The Customs Administration is the sole administrator for excise matters. Businesses may need registration, permits, approved warehouses and guarantees, while the amount depends on the specific product and measurement unit. Property taxes are local annual taxes on real estate. The base is the property's market value, and the municipality or City of Skopje sets a rate normally between 0.10% and 0.20%. The owner is generally liable, although a user or usufructuary can be liable in the circumstances defined by law. Occupied primary residences receive a 50% reduction. Inheritance and gift tax uses the market value after relevant property debts and costs. The first inheritance order is taxed at 0%, the second at 2% to 3% and the third order or a non-relative at 4% to 5%, with the exact municipal rate set by local decision. Cash, claims, securities and movable property can also be taxable when their value exceeds the previous year's average annual salary. Real-estate transfer tax is generally 2% to 4%, normally payable by the seller, although a contract can place the payment on the buyer. The municipality sets the applicable rate. Businesses must complete general tax registration with UJP and obtain an EDB. Electronic channels such as e-Tax, e-UJP and e-PDD are relevant to filing and communication. Employers use MPIN for salary PIT and mandatory social contributions; the contributions are a separate compliance area, although payroll reporting connects them. Businesses accepting cash must use an approved fiscal system and issue fiscal receipts. Accounting records, related-party evidence, tax balances and required bank or payment reports support the tax position. The Tax Procedure Law governs assessment, audits, collection, taxpayer rights, appeals, deferral and forced collection. Taxpayers can inspect tax acts through UJP or e-Tax. Late payment can lead to statutory interest and sanctions. Cross-border payments require separate checks. A domestic withholding baseline of 10% of gross income can apply when a North Macedonian payer pays a foreign legal entity or non-resident without a North Macedonian permanent establishment. Covered categories include dividends, interest, royalties, entertainment and sports income, management, consulting and financial services, research and development, insurance premiums, telecommunications and rent from North Macedonian real estate. A double-tax treaty can provide a lower rate or exemption. The payer normally needs the relevant UJP forms, the recipient's foreign tax identification number and a valid certificate of residence before payment. The annual DD-I report is generally due by 15 February of the following year, and excessive withholding may be refundable. A North Macedonian resident individual can use foreign tax evidence and treaty or statutory credit rules for worldwide income. Related-party transactions require transfer-pricing comparison and documentation. The Law on Global Minimum Tax has applied since 3 January 2025 to multinational enterprise groups and large domestic groups meeting the threshold of at least EUR 750,000,000 consolidated revenue in at least two of the previous four fiscal years, subject to exclusions for qualifying entities. It establishes a 15% minimum effective tax through mechanisms including QDMTT, IIR and UTPR. For the first 2024 filings, the stated deadlines were 30 June 2026 for the GIR and QDMTT notification, 30 July 2026 for DDD/P and QDMTT payment, and 30 August 2026 for top-up-tax payment. A zero-liability return is still required. Current national law, UJP guidance and the relevant municipal decision should be checked for the applicable filing date, local rate, relief and procedural detail.