North Macedonia
Skopje
EY
Str. Zeleznicka No. 41
Building 3, 5th Floor 1000 Skopje North Macedonia
Principal Tax Contacts
Milen Raikov
Viktor Mitev
Svetlana Radenkovic
ey.com/globaltaxguides
+389 (2) 311-3310
Email: eyskopje@mk.ey.com
+359 (2) 817-7100
Mobile: +359 (886) 183-933
Email: milen.raikov@bg.ey.com
+359 (2) 817-7100
Mobile: +359 (889) 100-425
Email: viktor.mitev@bg.ey.com
+389 (2) 311-3310
Mobile: +389 (72) 236-109
Email: svetlana.radenkovic@mk.ey.com
North Macedonia, which was a republic of the former Yugoslavia, gained its independence in 1991. The country changed its name to North Macedonia in 2019. Because of the rapidly changing economic situation in North Macedonia, readers should obtain updated information before engaging in transactions.
B. Taxes on corporate income and gains
Corporate income tax. North Macedonian companies are subject to corporate tax on their worldwide income. North Macedonian companies are companies incorporated in North Macedonia. Foreign companies are taxed in North Macedonia on their profits generated from activities conducted through a permanent
Nature of tax Rate
Excise tax on sales in North Macedonia and on imports of various items; tax is imposed at ad valorem rates, which are applied to the sales or import price, or at specific rates, which are expressed in North Macedonian denars per unit of goods; for petrol, Diesel D-1 and gas, the rates are subject to change every two weeks
Petrol
Diesel D-1 (petrol for use in motor cars)
Heating oil
Fuel oil
Alcoholic beverages
Beer
Cigars and cigarillos
Cigars
Cigarillos
Cigarettes
Taxes contained in Property Tax Law
MKD21.692 to MKD24.396 per liter
MKD15.5 per liter
MKD15.5 per liter
MKD0.10 per kilogram
MKD340 per liter of pure alcohol
MKD4 per percentage of alcohol in a liter
MKD21.37 per piece
MKD10 per piece
MKD3.253 per piece plus 9% of the retail price
Property tax; annual tax on owners of immovable property, including non-rural land, residential buildings or apartments, industrial, business and administrative buildings, and garages and other structures; tax base is the market value of the real estate or movable property; tax return must be filed by 31 January (only if changes have occurred since the previous period)
Tax on sales and other transfers of real estate and rights to real estate; tax base is the market value of the real estate or right at the time of the sale; for exchanges, the tax base is the difference between the market values of the items being exchanged; tax payable by transferor; tax return must be filed within 15 days after the transfer of the property
Inheritance and endowment tax, on the inheritance or endowment of immovable or movable property; tax applies regardless of whether inheritance or endowment is granted in a will or is acquired under the inheritance law or under an endowment agreement; tax base is the market value of the inheritance and endowment, reduced by debts and expenses; tax is paid by resident and nonresident recipients, including companies; tax return must be filed within 15 days after the transfer of the property
Individuals in first line of heritage
Individuals in second line of heritage
to 0.2%
government or municipalities, or other legal entities that are directly financed by the government, the central bank or municipalities.
(f) The 0% rate applies if the beneficial owner of the dividends is a pension fund or other similar institution providing pension schemes in which individuals may participate to secure retirement benefits. The 5% rate applies if the recipient of the dividend is a company (other than a partnership) that holds at least 25% of the equity of the payer of the dividends and if such holding is maintained for an uninterrupted period of at least one year and the dividends are declared within that period.
(g) The 0% rate applies if the recipient of the dividend is a company (other than a partnership) that holds at least 10% of the voting power of the payer of the dividends.
(h) The 0% rate applies if the beneficial owner of the interest is the State of Finland, Bank of Finland, Finnish Fund for Industrial Co-operation or if the interest is from loans supported by the government of Finland.
(i) The 0% rate applies if the recipient of the dividend is a company (other than a partnership) that holds at least 10% of the equity of the payer of the dividends.
(j) The 0% rate applies if the beneficial owner of the interest is the government, municipalities or their fully owned entities or if the interest payments arise from loans of other agencies or instrumentalities (including financial institutions) based on agreements between the governments.
(k) The 0% rate applies if the beneficial owner of the interest is the government including municipalities, the central bank and financial institutions controlled by the government or if the interest is derived from loans guaranteed by the government.
(l) The 0% rate applies if the beneficial owner of the interest is the government including municipalities, agencies or banks of the government or municipalities or if the interest is derived from loans warranted, insured or financed by the government.
(m) The 0% rate applies if any of the following circumstances exist:
• The beneficial owner of the interest is the state, a statutory body or the central bank.
• The interest is paid on loans approved by the government of the country of the interest payer.
• The interest is paid on loans granted by the SWEDCORP, Swedfund International AB, the Swedish Export Credits Guarantee Board or any other public institution with the objective of promoting exports or development.
• The interest is paid on bank loans.
(n) The 0% rate applies if the beneficial owner obtained the interest with respect to sales on credit of industrial, commercial or scientific equipment or with respect to sales on credit of merchandise between enterprises or if the interest is paid on bank loans.
(o) The 0% rate applies if the beneficial owner of the interest is the government, municipalities or the central bank.
(p) The 0% rate applies if the beneficial owner obtained the interest with respect to sales on credit of industrial, commercial or scientific equipment or with respect to sales on credit of merchandise between enterprises or if the interest is paid on long-term bank loans (over five years).
(q) The lower rate applies if the recipient of the dividend is a company (other than a partnership) that holds at least 10% of the equity of the payer of the dividends.
(r) The 0% rate applies if the beneficial owner of the dividends owns at least 25% of the equity of the payer of the dividends for the entire 12-month period ending on the date of payment of the dividend or if the beneficial owner of the dividends is a pension scheme. The 5% rate applies if the beneficial owner of the dividends is a company that holds at least 10% of the voting power of the payer of the dividends.
(s) The 0% rate applies to interest paid with respect to a loan granted or credit extended by an enterprise to another enterprise and to interest paid to political subdivisions, local authorities or public entities.
(t) The 0% rate applies to interest paid with respect to a loan granted or credit extended for the sale of industrial, commercial or scientific equipment (unless the sale or loan is between related persons), and to interest paid to the government including local authorities, the central bank and financial institutions wholly owned by the government.
(u) The higher rate applies to royalties paid for the use of, or the right to use, movies or tapes for radio and television broadcasting.
(v) The 0% rate applies if the beneficial owner of the dividends owns at least 25% of the equity of the payer of the dividends for the entire 12-month period ending on the date of payment of the dividend or if the beneficial owner of the dividends is a pension scheme. The 5% rate applies if the recipient of