Taxation of individuals’ income in North Macedonia is based on their residence status.
Macedonian tax residents are taxed on their worldwide income.
Non-residents are taxed on their income derived in the Macedonian territory.
Personal income tax rates
As of 1 January 2020 until 31 December 2022, a 10% flat tax rate is applicable on individual's income from work, self-employment income, income from royalties and industrial property rights, income from sale of own agricultural products, rental income, income from capital, capital gains, and insurance income, as well as other taxable income not categorised separately in the legislation. The applicable tax rate on the gains realised from games of chance is 15%.
The taxation of interest on time saving deposits and capital gains realised from sale of securities and shares released from investment funds is postponed until 1 January 2023.
As of 1 January 2023, the tax rates per category of income will be as follows:
|Type of income||Annual tax base||Tax rate|
||Up to gross 1,080,000 Macedonian denars (MKD)||10%|
|Above gross MKD 1,080,000||18% on the difference above MKD 1,080,000|
||Regardless of the amount of realised income||0%/10%15%|
||The difference between the value of the property and the proved amount of funds for its acquisition.||70%|
* As of 1 January 2023, the applicable tax rate on capital gains from sale of securities and shares issued by an investment fund will be :
- 15% if the taxpayer has owned them up to one year.
- 10% if the taxpayer has owned them for a period of one to ten years.
- 0% if the taxpayer has owned them for a period longer than ten years.
The tax rate on interest from time savings deposits will be 10%.
Local taxes on income
There are no local taxes on income.