North Macedonia

Individual - Taxes on personal income

Last reviewed - 30 July 2020

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, 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, 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
  • Employment income.
  • Income from self-employment.
  • Income from royalties and other related rights.
  • Income from sale of own agricultural products.
Up to gross MKD 1,080,000  10%
Above gross MKD 1,080,000 18% on the difference above MKD 1,080,000
  • Income from intellectual property (IP) rights.
  • Income from lease and sub-lease of movables and immovable property.
  • Income from capital.
  • Capital gains*.
  • Gains from games of chance.
  • Income from insurance.
  • Other income.
Regardless of the amount of realised income   0%/10%15%
  • Income whose origin cannot be proved.
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 1 to 10 years,

- 0%  if the taxpayer has owned them for a period longer than 10 years,

 The tax rate on interest from time savings deposits will be 10%.

Local taxes on income

There are no local taxes on income.