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North Macedonia
Overview
Last reviewed - 28 February 2024North Macedonia, a landlocked country located in Southeastern Europe, is bordered by Greece to the south, Bulgaria to the east, Kosovo and Serbia to the north, and Albania to the west. It gained its independence in 1991 and has a republican form of government. North Macedonia is divided into 80 municipalities, with Skopje as the capital. The official language in the country is Macedonian, and the currency is the Macedonian denar (MKD).
In the first few years after independence, the Macedonian economy suffered a plunge resulting in steep falls in gross domestic product (GDP) and the loss of a large and protected market. This led to a period of economic decline with high inflation, large fiscal deficits, and almost no foreign investment. At the end of 1994, the government initiated and successfully implemented a stabilisation program, with the assistance of international donors including the World Bank and the International Monetary Fund (IMF).
According to the data of the State Statistical Office, the number of active business entities in the Republic of North Macedonia in 2018 was 72,315. The sectors with the highest number of business entities were wholesale and retail trade, as well as motor vehicle repair. The sectors with the least number of business entities represented were electricity, gas, steam, and air conditioning supply, as well as mining and quarrying.
North Macedonia looks toward European Union (EU) membership for continued economic growth. Macroeconomic stability has been maintained by a prudent monetary policy, which has kept the domestic currency at the pegged level against the euro, at the expense of raising interest rates.
PwC North Macedonia, which was founded in August 1992, is the auditor and consultant in numerous audit engagements, financial due diligence projects, and tax and legal services in the country. The firm has developed multi-disciplined teams to work with clients with extensive industry knowledge and experience in industrial products, technology, info-com and entertainment, energy, utilities and mining, and financial services.
PwC North Macedonia's tax practice provides a full range of services, including:
- International tax planning.
- Personal taxation and executive remuneration.
- Customs and trade consultancy.
- Estate planning and taxation.
- Pensions planning.
- Value-added tax (VAT).
- Intellectual property and technology transfer.
Quick rates and dates
| Corporate income tax (CIT) rates | |
|---|---|
| Headline CIT rate (%) |
10 |
| Corporate income tax (CIT) due dates | |
|---|---|
| CIT return due date |
The due date for the CIT return is the end of February or, if filled electronically, 15 March following the calendar year. The due date for the CIT return on distributed profit arising from FY 2009 to FY 2013 is the date of profit distribution. The due date for CIT return on reinvested profit is 30 days as of the date the conditions for the incentive are no longer satisfied by the taxpayer. The due date for CIT return on revaluation reserves is the date of their transfer into accumulated profit. |
| CIT final payment due date |
The payment of CIT is due within 30 days as of the dead-line for submission of the tax return. The payment of CIT on distributed profit arising from FY 2009 to FY 2013 is due at the moment of profit distribution. The due date for payment of CIT on reinvested profit is 30 days as of the date the conditions for the incentive are no longer satisfied by the taxpayer. The due date for payment of CIT on revaluation reserves is the date of their transfer into accumulated profit. |
| CIT estimated payment due dates |
Monthly CIT advance payments are due during the year, within 15 days as of the end of each month. |
| Personal income tax (PIT) rates | |
|---|---|
| Headline PIT rate (%) |
10 |
| Personal income tax (PIT) due dates | |
|---|---|
| PIT return due date |
The draft annual tax return is prepared by PRO by 30 April of the following year. Within the next month, i.e. until 31 May, the taxpayer should confirm the correctness of the data included in the draft return or make appropriate corrections. Otherwise, it would be deemed as final. |
| PIT final payment due date |
By 30 June of the following year. |
| PIT estimated payment due dates |
In case the tax is payable by way of withholding by companies, at the moment of payment of any taxable income to individuals. In all other cases and for salaries, by the 15th day of the following month for the income realised in the previous month. |
| Value-added tax (VAT) rates | |
|---|---|
| Standard VAT rate (%) |
18 |
| Withholding tax (WHT) rates | |
|---|---|
| WHT rates (%) (Dividends/Interest/Royalties) |
Resident: NA; Non-resident: 10 / 10 / 10 |
| Capital gains tax (CGT) rates | |
|---|---|
| Headline corporate capital gains tax rate (%) |
Capital gains are part of the regular profit for the year, thus subject to the normal CIT rate. |
| Headline individual capital gains tax rate (%) |
Capital gains are subject to the flat PIT rate at 10%. See the Income determination section. |
| Net wealth/worth tax rates | |
|---|---|
| Headline net wealth/worth tax rate (%) |
NP |
| Inheritance and gift tax rates | |
|---|---|
| Headline inheritance tax rate (%) |
The inheritance tax rates are proportional and ranging between 0% and 5%, depending on the order of succession, and the rate depends on the decision of the relevant municipality. |
| Headline gift tax rate (%) |
The gift tax rates are proportional, ranging between 0% and 5%. The rate depends on the order of inheritance succession (if applicable) and the decision of the relevant municipality. |
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