Taxes are one of the most important parts of every fiscal system — public revenue through which the state finances the general needs of citizens. In North Macedonia, more than 80% of the budget is based on taxes, and the institution responsible for their collection and control is the Public Revenue Office, established in 1994.
For companies and entrepreneurs, understanding tax rules is not only an administrative obligation — it is the foundation for stable financial planning and proper business operations.
Basic elements of the tax system
Every tax system consists of several basic elements. They help determine who pays tax, what the tax is calculated on, and which rate is applied.
Types of taxes in North Macedonia
Taxes are most often grouped as income taxes, consumption taxes and property taxes. For an easier overview, choose a category depending on whether you are interested in taxes for individuals, companies or property.
| Type of income | Tax base | Rate | Note |
|---|---|---|---|
| Employment income | Annual total income, reduced by contributions, tax relief and standard expenses prescribed by law | 10% | Proportional tax |
| Independent activity | Income from services, crafts, agricultural or other independent activity | 10% | Also applies to sole proprietors and persons performing an activity |
| Copyrights and related rights | Income earned on the basis of copyrights and related rights | 10% | Included in the annual total income |
| Capital and capital gains | Income from capital and capital gains | 10% | Proportional tax |
| Dividend from profit | Official profit after paid profit tax, when it represents income of an individual | 11.11% | Personal tax when withdrawing profit |
| Other income | Other income earned by the person during the calendar year | 10% | Included in the annual total |
| Taxpayer | Subject / condition | Rate | Note |
|---|---|---|---|
| Resident legal entities | Legal entities in North Macedonia that earn income | 10% | Tax on generated profit |
| DOOEL, DOO and other companies | Profit generated during the financial year by companies with income over 3,000,000 MKD | 10% | Profit = income minus expenses |
| Foreign entities | Profit from activity performed on the territory of North Macedonia | 10% | Applies when profit is generated in the country |
| Non-profit organizations | Only if they generate income from commercial activity greater than 1,000,000 MKD | 1% | Calculated on generated total income |
| Category | Threshold / condition | Rate / period | Note |
|---|---|---|---|
| Mandatory registration | Total turnover above 2,000,000 MKD in one calendar year | VAT taxpayer | For persons performing commercial activity in North Macedonia |
| Standard rate | Turnover of goods and services that are not subject to a preferential rate | 18% | Standard tax rate |
| Preferential rate | Food products, water from public systems, publications, agricultural materials, medicines and similar products | 5% | Preferential rate |
| Quarterly payment | Annual income lower than 25,000,000 MKD | every 3 months | Return within 25 days after the end of the tax period |
| Monthly payment | Annual income higher than 25,000,000 MKD | monthly | Return within 25 days after the end of the tax period |
| Type | Description | Character |
|---|---|---|
| Excise duties | Consumption taxes related to certain products, turnover and consumption | Indirect tax |
| Customs duties | Consumption taxes related to import, trade and turnover | Indirect tax |
| Type of tax | Tax base | Rate | Note |
|---|---|---|---|
| Property tax | Market value of the real estate, assessed by a municipal commission | 0.10% – 0.20% | Applies to natural and legal persons |
| Real estate transfer tax | Transfer of ownership of real estate to another person | 2% – 4% | Applies to real estate transactions |
| Inheritance and gift tax | Use of real estate received as inheritance or gift | 2% – 5% | Applies to inheritance and gifts |
Why is timely tax support important?
Taxes are part of the everyday operations of every company. They affect invoicing, cash flow, profit planning, income payments, obligations toward the state and the financial stability of the business.
When a company has a clear picture of its tax obligations, it can plan more easily, make decisions and avoid administrative omissions. That is why tax support should not be seen only as a reaction when a problem appears, but as part of regular and responsible business management.
This is especially important for new companies, growing companies, businesses entering the VAT system, as well as entrepreneurs who want better control over their financial and tax obligations. If you are in the process of starting a business, you can also review our company registration service.
Do you need support with taxes and accounting?
Tax rules may seem simple at first glance, but their application in real business operations often requires attention, accuracy and experience.
Aleksandar.AK helps companies and entrepreneurs with accounting, tax consulting and practical support for timely and proper fulfillment of obligations.