Personal income tax is paid on the total income earned by individuals from various sources, both domestic and foreign, during one calendar year.
The following types of income are considered personal income:
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Income from employment;
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Income from self-employment;
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Income from copyrights and related rights;
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Income from the sale of own agricultural products;
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Income from industrial property rights;
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Income from lease and sublease;
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Income from capital;
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Capital gains;
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Winnings from games of chance;
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Income from insurance; and
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Other income.
The above-mentioned types of income are subject to taxation when earned in cash, securities, in-kind, or in any other form.
Taxpayer
The taxpayer of the personal income tax is any natural person resident in the Republic of North Macedonia for income earned domestically and abroad.
A natural person who is not a resident of the Republic of North Macedonia is also liable to pay tax for income earned on the territory of the Republic of North Macedonia.
Tax rate
The personal income tax rate for all types of income is 10%, except for winnings from games of chance, which is 15%.
Annual Tax Return
The Public Revenue Office (PRO) prepares an annual tax return for the taxpayer, which contains data on the income earned and advance tax payments made during the year for which the tax is determined, and delivers it to the taxpayer no later than April 30th of the following year.
The taxpayer is required to confirm the accuracy of the data in the delivered completed annual tax return or to correct the return no later than May 31st.
If the taxpayer does not confirm or correct the delivered completed annual tax return by May 31st, the delivered completed annual tax return is considered confirmed.
Personal income tax is not paid on:
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Child allowance and other social allowances for children;
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Assistance for damages caused by natural disasters up to the prescribed amount;
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Scholarships for pupils and students awarded by state administration bodies and foundations;
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Compensation to volunteer persons;
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Prizes to athletes for achieved results at official international competitions;
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Financial assistance for medical treatment of persons in the country or abroad;
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Paid donated financial funds through open special telephone numbers used for humanitarian purposes;
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Compensation for damages based on life and non-life insurance;
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Paid premiums for collective insurance for employees;
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Paid premium for life insurance up to the amount of two average monthly gross salaries in the Republic of North Macedonia;
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Paid premium for voluntary health insurance up to the amount of one average monthly gross salary in the Republic of North Macedonia;
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Paid contributions to a voluntary pension fund up to the amount of two average monthly gross salaries in the Republic of North Macedonia;
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Capital gains realized from the sale of securities and shares issued by investment funds until December 31, 2022;
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Interest on term deposits until December 31, 2022;
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Interest on demand deposits and transaction accounts;
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Interest on bonds issued by the Republic of North Macedonia and local government units; and
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Winnings from general games of chance which do not exceed the amount of 5,000 Macedonian denars.
