Income tax

• Companies resident in Macedonia are subject to tax on their worldwide income. Non-resident companies are subject to tax on Macedonian-sourced income only.
• There is no separate capital gains tax except for individuals, who pay 10%.

Transfer price

• A transfer pricing regime imposes record-keeping requirements and provides for income to be adjusted on an arm's length basis.

VAT

• VAT is applied on the supply of goods and services in Macedonia by a taxable person, subject to exemptions. The standard rate is 18% and a reduced rate of 10% and 5% applies to specific goods and services.

Personal income tax

• Resident individuals are subject to Personal income tax on their worldwide income while non-residents are liable to tax on North Macedonian-sourced income only;
• Personal income tax is 10% for 2020, 2021, and 2022;
• Progressive taxation will be applied for personal income tax starting from 2023, tax rates of 10% and 18%, for the following types of income: Income from work, income from the independent activity, income from the copyright and related rights, and income from the sale of own agricultural products. A unique rate of 15% is applied for taxation of industrial property rights income, rental income, and sublease, capital gains, capital gains, gains from games of chance, insurance income and other income. 

Greenfield investments

• Greenfield investments Technological–Industrial Development Zones heavily exempt from taxes and other benefits: Zero-rated personal and corporate income tax for up to the first 10 years (10% thereafter), no VAT and customs duties for export production, subsidy of up to EUR 500,000 towards building costs, land lease for up to 99 years at attractive concessionary rates, free connection to utilities, Green Customs Channel expediting exports to the EU, advantageous location, access to pan-European corridors 8 and 10, railroad, and international airport.

Brownfield investments

• Brownfield investments may benefit from some tax exemptions on employees for about two years.

Incentives in the IT sector

• Personal income tax cuts are expected in the IT sector starting in 2021
•  Mapping of IT industry in MK- Summarized and processed results of a survey on programming and IT administration. The survey was conducted in the period from February 6 to March 6, 2019 and a total of 1,135 IT professionals took part, of which 856 in the development and programming activities