North Macedonia

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 2023 onwards, 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:

* 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 0% if the taxpayer has owned them for a period longer than two years.

 ** The taxation of income from termed deposits is postponed until accession of North Macedonia to the European Union.

Local taxes on income

There are no local taxes on income.