Tax in North Macedonia

Who is the tax authority?

North Macedonia's national tax authority is the Uprava za javni prihodi (UJP — Public Revenue Office), operating under the Ministry of Finance. Filings flow through the UJP e-portal at ujp.gov.mk. Customs is administered separately by the Customs Administration.

Substantive law rests on four statutes: the Personal Income Tax Law, the Profit Tax Law, the VAT Law (DDV Zakon), and the Tax Procedure Law. North Macedonia has been an EU accession candidate since 2005 — the second-longest waiting after Turkey. Formal accession negotiations opened 19 July 2022. The Institute of Certified Auditors of the Republic of North Macedonia and the Chamber of Authorized Auditors oversee professional standards for licensed accountants.

What is the tax year and when are returns due?

North Macedonia's tax year matches the calendar year (1 January to 31 December). Wage income tax is withheld monthly by employers via PAYE-equivalent payroll withholding.

Who counts as a North Macedonian tax resident?

Under the Personal Income Tax Law, an individual is tax resident in North Macedonia if either rule applies:

• Maintaining a permanent residence in North Macedonia (permanent home or centre of vital interests)
• Physically present in North Macedonia for 183 or more days in any 12-month period

Residents pay tax on worldwide income. Non-residents pay tax only on Macedonian-source income. The two tests apply independently — satisfying either one establishes residency.

Deep-dive: see expat and cross-border tax in North Macedonia for practical rules around moving in or out mid-year.

What are the personal income tax rates?

North Macedonia applies a flat 10% rate on most categories of personal income, with a personal allowance of MKD 100,000 per year.

Social contributions on employment income include pension and disability insurance (18% employer, 7.5% employee) and health insurance (7.5% employer, 2.5% employee). Self-employed persons pay both portions. These run on top of the flat 10% PIT.

How does corporate tax work?

North Macedonia's Danok na dobivcka (corporate income tax — CIT) is a flat 10% on taxable profit. This matches the PIT rate and is among Europe's lowest alongside Bulgaria (10%), Hungary (9%), and Montenegro (9–15%).

Withholding tax on dividends paid to non-residents is 10% (treaty rates apply). Some entities pay a 1% advance CIT on gross revenue throughout the year, creditable against the final 10% liability. Tax losses carry forward for 3 years. North Macedonia has not transposed the OECD Pillar Two global minimum tax — EU accession will require future compliance.

Deep-dive: see small business tax in North Macedonia for sole-trader vs incorporated comparison.

What about DDV (VAT) and other indirect taxes?

Danok na dodadena vrednost (DDV — value added tax) is North Macedonia's main indirect tax under the VAT Law. The standard rate is 18%.

DDV registration becomes mandatory once annual turnover exceeds MKD 2 million. Below that threshold, voluntary registration is available. Monthly DDV returns are due by the 25th of the following month (quarterly returns available for smaller taxpayers). North Macedonia's DDV framework is substantially aligned with the EU VAT Directive as part of pre-accession harmonisation.

Deep-dive: see VAT and sales tax in North Macedonia for full DDV mechanics.

How are cryptoassets taxed?

North Macedonia has no dedicated cryptoasset tax law. The National Bank of the Republic of North Macedonia (NBRSM) has issued advisories that cryptoassets are not legal tender and carry investment risk. Where cryptoasset gains are declared, they fall under the existing capital-gains category at 10% (or 15% for unlisted securities if applicable).

Deep-dive: see crypto taxation in North Macedonia for the current NBRSM framework and accession implications.

What is the MKD currency framework?

What is the treaty network?

North Macedonia has approximately 50 active bilateral double-tax agreements (DTAs). The country signed and ratified the OECD Multilateral Instrument (MLI) in 2018 — MLI modifications (principal purpose test, dispute resolution) apply against other MLI-signatory partners. There is no bilateral DTA with the United States.

Key partners include Germany, Austria, France, Italy, Switzerland, UK, Netherlands, Belgium, Spain, Sweden, Norway, Denmark, Finland, Turkey, China, India, Iran, Israel, Egypt, UAE, Korea, and all immediate Balkan neighbours (Bulgaria, Greece, Albania, Kosovo, Serbia, Croatia, Romania, Hungary, Czech Republic, Slovakia, Poland, Slovenia). Standard audit statute of limitations is 5 years, extended for fraud.

Deep-dive: see tax treaty relief in North Macedonia for the bilateral rate schedules.

Where does North Macedonia sit in the regional cohort?

North Macedonia anchors the Western Balkans EU-candidate cohort alongside Albania, Bosnia and Herzegovina, Montenegro, Serbia, and Kosovo.

Meet a North Macedonia-resident taxpayer

Common pitfalls and penalties

Foreign companies and individuals encounter several recurring traps when operating in North Macedonia:

When should you talk to a North Macedonian tax professional?

Some situations are straightforward for the UJP e-PIT portal. Others get complicated fast:

• Setting up inside a TIDZ zone — eligibility conditions, zone compliance, and the 10-year CIT holiday require formal verification
• Your company has cross-border dividend, interest, or royalty payments — treaty eligibility under the ~50 DTAs needs verification
• You are a multinational subsidiary potentially subject to Pillar Two top-up tax in your home jurisdiction
• Moving into or out of North Macedonia mid-year — split-year residency and the 183-day rule interact with exit taxes in Germany, Switzerland, and other diaspora destination countries
• You have cryptoasset disposals to declare and are unsure of the applicable capital-gains category
• You have received a UJP audit notice, back-tax query, or penalty letter
• You are unsure whether DDV registration applies to your cross-border digital-services supply
• Your company has a 1% revenue-advance tax overpayment and needs to file a refund claim

Look for a licensed certified accountant (ovlasten smetkovoditel) or auditor accredited by the Institute of Certified Auditors of the Republic of North Macedonia. A directory of vetted North Macedonian practitioners is available below.

This page contains general information about North Macedonia's tax system. It is not personal guidance for your specific situation. Tax rules change. Always verify current figures on the UJP website (ujp.gov.mk) or with a licensed North Macedonian practitioner before filing.