North Macedonia Corporate Income Tax

Corporate profit tax rate and base

• Corporate profit tax rate — 10% flat (Law on Profit Tax)

Corporate profit (income) tax is levied at a flat 10% on the adjusted accounting profit. North Macedonia historically also taxed certain non-deductible expenses and undistributed profit under a distribution-based mechanism, now narrowed.

• Tax base — Accounting profit adjusted for non-deductible expenses and other tax adjustments under the Profit Tax Law (Law on Profit Tax)
• Tax on non-deductible expenses — Non-deductible / non-business expenses are added to the tax base and effectively taxed at 10% (Law on Profit Tax)
• Simplified small-taxpayer regime — Companies with annual revenue up to a statutory threshold may opt for a turnover-based tax (1% of total revenue) or remain exempt below the lower threshold ((approx — confirm)) (Law on Profit Tax)
• Withholding tax on dividends (to non-residents) — 10% (reduced/eliminated under applicable double tax treaties) rate (Law on Profit Tax)
• Withholding tax on interest (to non-residents) — 10% (reduced/eliminated under applicable double tax treaties; government bond interest exempt) rate (Law on Profit Tax)
• Withholding tax on royalties (to non-residents) — 10% (reduced/eliminated under applicable double tax treaties) rate (Law on Profit Tax)
• Dividends between resident companies — Dividends distributed between resident companies are generally not subject to withholding / profit tax in the hands of the resident recipient ((approx — confirm)) (Law on Profit Tax)
• Double tax treaty network — North Macedonia has double taxation treaties with around 49 countries; treaty rates range 0%–15% and require prior tax authority approval to apply (Applicable Double Taxation Treaties)
• Annual profit-tax return deadline — By the end of February of the year following the tax year ((approx — confirm)) (Law on Profit Tax)
• Advance payments — Corporate profit tax is paid in monthly advance instalments based on the prior year's liability, with a final settlement on the annual return (Law on Profit Tax)