North Macedonia tax
Tax residence: At least 183 days in any 12-month period. Special regime for new residents: Lump-sum assessed net income.
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Tax residence
- At least 183 days in any 12-month period · Staying 183 or more days continuously or with breaks in any 12-month period makes a person resident for personal income tax.
- Tax residence is decided by permanent home or presence of 183 or more days in any 12-month period.
Special regimes for new residents
Special regime
Lump-sum assessed net income for small self-employed
10% tax
Details
- Who: The taxpayer cannot keep business books
Small self-employed persons who cannot keep books and have net income up to two annual average salaries can ask to be taxed on a lump-sum assessed net income. 6 1 7
Taxed on
Net income of the activity assessed as a lump sum by the Public Revenue Office, which considers the location, equipment and area of the business premises, market conditions, the taxpayer's age and ability, the net income of similar businesses and other circumstances; the 10% personal income tax rate applies to the assessed amount.
Who it applies to
- The taxpayer cannot keep business books, or keeping them makes the activity difficult.
- The taxpayer employs nobody and nobody invests in the activity.
- Net income in the year before the assessment year was not above two annual average salaries.
- The request (form PDD-P) is filed by 31 December of the previous year, within 15 days of registration, or before starting the activity.
Exclusions
- Trade, catering and commission activities cannot use the lump sum, except trade strictly at organised green markets.
- Taxpayers with employees or outside investors cannot use it.
Tax residence
Available to taxpayers carrying on a registered activity in North Macedonia.
Visas
Not tied to a permit; foreigners need a permit that allows self-employment.
Other taxes
Contributions and value added tax are separate.
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Standard rules and foreign-source income
Standard rules
Personal income tax: flat 10% on residents' worldwide income, after 28% employee contributions and a MKD 10,932 monthly tax reduction
Worldwide income
Details
- Who: A resident is a person with a permanent home in North Macedonia
- Limit: MKD 11k/mo ≈ $200
Residents of North Macedonia pay a flat 10% personal income tax on income earned in the country and abroad; for salary the tax base is gross pay minus the 28% employee contributions and a tax reduction of MKD 10,932 (≈ $200) a month (MKD 131,184 (≈ $2,400) a year in 2026). Non-residents pay on income earned in North Macedonia. 1 2 3 4 5
Taxed on
Worldwide income of residents, reduced by compulsory social insurance contributions and the tax reduction; North Macedonian-source income of non-residents.
Who it applies to
- A resident is a person with a permanent home in North Macedonia, or with habitual abode if present continuously or in total 183 or more days in any 12-month period.
- The rate is 10% on all types of income except winnings from games of chance, taxed at 15%.
- Tax base: gross income from all sources, in the country and abroad, reduced by compulsory social insurance contributions, the tax reduction and the normed or actual costs allowed by the law.
- Tax reduction: used when paying salary, salary benefits and pensions; MKD 10,932 (≈ $200) a month and MKD 131,184 (≈ $2,400) on the annual calculation from the January 2026 payroll, and it reduces the tax base.
- Employee contributions are 28% of gross pay: 18.8% pension and disability, 7.5% health, 0.5% additional health for work injury and occupational disease and 1.2% unemployment.
- From the July 2026 payroll to the December 2026 payroll the split changes with the total unchanged at 28%: 19.9% pension and disability, 7.5% health, 0.5% additional health and 0.1% unemployment.
- Contributions are calculated on gross pay up to a highest base of sixteen average monthly salaries (twelve for the self-employed).
- Tax paid abroad gives a credit against the North Macedonian tax, up to the amount of the North Macedonian tax on that income, and requires official proof of the tax paid.
- The Public Revenue Office prepares an annual tax return by 30 April, and the taxpayer confirms or corrects it by 31 May.
Exclusions
- Non-residents are taxed only on income earned in North Macedonia.
Limits
- MKD 10,932 a month (≈ $200) · Monthly tax reduction applied to salary, salary benefits and pensions in 2026
- MKD 131,184 a year (≈ $2,400) · Tax reduction on the annual calculation of personal income tax in 2026
Days in the country
- At least 183 days in any 12-month period · Staying 183 or more days continuously or with breaks in any 12-month period makes a person resident for personal income tax.
Tax residence
Tax residence is decided by permanent home or presence of 183 or more days in any 12-month period.
Visas
Immigration status does not set tax residence; the presence test applies to any permit holder.
Other taxes
Employee social contributions are 28% of gross pay; value added tax and corporate profit tax are levied separately.
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VAT, social security and other taxes
- Employee social contributions are 28% of gross pay; value added tax and corporate profit tax are levied separately.
- Contributions and value added tax are separate.
Questions people ask
When do you become a tax resident in North Macedonia?
At least 183 days in any 12-month period (Staying 183 or more days continuously or with breaks in any 12-month period makes a person resident for personal income tax). Tax residence is decided by permanent home or presence of 183 or more days in any 12-month period.
Who qualifies for Lump-sum assessed net income?
The taxpayer cannot keep business books, or keeping them makes the activity difficult. Not tied to a permit; foreigners need a permit that allows self-employment.
≈ USD figures are approximate: daily reference rates from ExchangeRate-API, dated 12 Oct 2026, refreshed when the site is updated.
Sources (7)
Official sources
- Overview of personal taxation in the Macedonian system (April 2026) · Public Revenue Office of North Macedonia · checked 2026-10-11 · published 2026-04
- Personal income tax · Ministry of Finance of North Macedonia · checked 2026-10-11
- Payroll calculation for 2026: contribution rates, tax reduction and highest contribution base · Public Revenue Office of North Macedonia (UJP) · checked 2026-10-10 · published 2025-12-31
- Amendments to the Law on Contributions for Mandatory Social Insurance in force: rates for July to December 2026 payrolls (OG 148, 6 July 2026) · Public Revenue Office of North Macedonia (UJP) · checked 2026-10-10 · published 2026-07-13
- Law on Personal Income Tax, editorially consolidated text (Articles 9-11: tax base, tax reduction, rate) · Official Gazette of North Macedonia (consolidated text) · checked 2026-10-10 · published 2025-02-04
- Taxation according to lump-sum assessed net income · Public Revenue Office of North Macedonia · checked 2026-10-11
- Law on Personal Income Tax, text published by the Public Revenue Office (Articles 10-11 rate and Article 31 lump-sum assessed net income) · Public Revenue Office of North Macedonia · checked 2026-10-11 · published 2017-12-25