North Macedonia international income-tax matters for calendar year 2026.
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| Item | Amount | Tax year | Official provision |
|---|---|---|---|
| Ordinary personal income tax | 10% on relevant category base | 2026 | [PIT arts. 9-11][pit] |
| Ordinary company/PE profit tax | 10% | 2026 | [Profit Tax Law arts. 2, 5][cit] |
| Foreign legal-person withholding | 10% of listed gross receipts, unless properly relieved | 2026 | [Profit Tax Law arts. 20-23][cit] |
| Domestic individual residence presence test | 183 or more days in any 12 months | 2026 | [PIT art. 5][pit] |
| Construction/installation/supervisory PE | More than 6 months; counted from commencement including preparatory activity | 2026 | [Profit Tax Law art. 6(3)][cit] |
| Service/consulting PE | More than 90 continuous days for one/connected project in any 12 months; interruptions up to 7 days do not break continuity | 2026 | [Profit Tax Law art. 6(4)-(6)][cit] |
| Foreign corporate profit-tax credit | Foreign tax paid, capped at local 10% tax on foreign profit | 2026 | [Profit Tax Law art. 37][cit] |
| Foreign personal-tax credit | Foreign tax paid, capped at domestic tax on that income | 2026 | [PIT art. 8(4)][pit] |
| Treaty relief decision / individual residence certificate | UJP statutory 30-day decision/issue period | 2026 | [Profit Tax Law art. 23(5)][cit]; [PIT arts. 8(3), 82(4), 89-a(4)][pit] |
| Late-payment interest | 0.03% daily | 2026 | [Tax Procedure Law art. 123][procedure] |
Tax year: 2026. Checked against the law, tier 2. Amounts are MKD unless stated otherwise. Professional review remains outstanding.
Individuals: PIT arts. 5-8 tax residents on worldwide income and nonresidents on local-source income. A permanent home/residence or at least 183 days in any 12-month period establishes the domestic residence basis. Apply the particular treaty's residence tie-breaker after testing both states; counting days alone does not resolve a permanent-home case.
Companies: Profit Tax Law arts. 4-6 tax entities established or seated locally on worldwide profits and foreign PEs on local business profits. Distinguish a foreign legal-person gross receipt subject to withholding from profits attributable to its local PE. Tax Procedure Law art. 2(5) gives ratified tax treaties priority over national tax laws. The UJP treaty register records application dates; signature or a treaty's mere presence in an old summary is insufficient.
This skill covers ordinary income-tax coordination, not a universal treaty-rate table. It does not certify migration/deemed-disposal, minimum global top-up tax or a particular treaty's beneficial-ownership/PPT/MLI result.
| Item | Amount | Tax year | Official provision |
|---|---|---|---|
| Ordinary personal income tax | 10% on relevant category base | 2026 | PIT arts. 9-11 |
| Ordinary company/PE profit tax | 10% | 2026 | Profit Tax Law arts. 2, 5 |
| Foreign legal-person withholding | 10% of listed gross receipts, unless properly relieved | 2026 | Profit Tax Law arts. 20-23 |
| Domestic individual residence presence test | 183 or more days in any 12 months | 2026 | PIT art. 5 |
| Construction/installation/supervisory PE | More than 6 months; counted from commencement including preparatory activity | 2026 | Profit Tax Law art. 6(3) |
| Service/consulting PE | More than 90 continuous days for one/connected project in any 12 months; interruptions up to 7 days do not break continuity | 2026 | Profit Tax Law art. 6(4)-(6) |
| Foreign corporate profit-tax credit | Foreign tax paid, capped at local 10% tax on foreign profit | 2026 | Profit Tax Law art. 37 |
| Foreign personal-tax credit | Foreign tax paid, capped at domestic tax on that income | 2026 | PIT art. 8(4) |
| Treaty relief decision / individual residence certificate | UJP statutory 30-day decision/issue period | 2026 | Profit Tax Law art. 23(5); PIT arts. 8(3), 82(4), 89-a(4) |
| Late-payment interest | 0.03% daily | 2026 | Tax Procedure Law art. 123 |
PE thresholds above are domestic-law tests. Read the actual applicable treaty before asserting that a PE exists or is exempt; do not substitute the domestic threshold for a treaty threshold.
Foreign legal-person payments: Profit Tax Law art. 21 lists dividends; covered resident/local-PE interest and royalties; local entertainment/sports; management, consulting, financial and R&D services paid by a resident or borne by a local PE; insurance/reinsurance of local risks; international telecommunications; and local real-estate rent. The payment can be made abroad and still fall within art. 21. Do not impose WHT on all services indiscriminately.
Art. 21(2) expressly excludes remittance of already taxed local PE profit, interest on specified government/central-bank instruments, bank-deposit interest and specified government-security intermediation/consulting income. Document the particular exclusion. Ordinary final WHT equals listed gross receipt × 10%; gross means the amount before withholding (art. 22). A contract promising a net amount needs algebraic gross-up: gross = net / (1 - applicable_rate) and withholding = gross - net, where the payer bears the tax. Treaty-reduced rates cannot be used without the relief conditions.
Individuals: use the relevant PIT category base, not the corporate gross-payment rule. Employment, services, dividends, rent and gains have different deductions in arts. 16, 21, 40, 50, 53, 57 and 60. Nonresident salary from a resident employer uses the express art. 16(1)(7) salary rule. Treaty relief at source follows arts. 81-83; nonresident self-assessed income uses arts. 89 and 89-a. Sale/exchange gains use actual proceeds/acquisition evidence and the specific exemptions; a bank transfer of capital is not automatically taxable income. For securities/fund units, apply the 1 January 2023 acquisition boundary, including predecessor dates, and chronological FIFO under Gazette 274/2022 transitional arts. 21-22. Use the income-tax skill's distinct domestic art. 85-a/91-a/93(4) annual reporting/assessment route; foreign receipts outside that route still require testing under arts. 87-88.
Foreign credit: compute the North Macedonia tax attributable to the foreign income/profit on its domestic-law base, compare with evidenced foreign income/profit tax paid, and allow no more than that domestic limit. Preserve the source income, allocation, exchange rate and foreign-authority proof. A foreign tax above the ceiling is not a local refund; no carryforward of unused credit is asserted. Avoid crediting a refundable foreign withholding amount as finally borne without checking its status (PIT art. 8; Profit Tax Law art. 37).
PE attribution and registration: art. 6 covers fixed business locations and dependent agents as well as the duration tests. Contract-concluding authority, local stock/delivery, preparation/auxiliary exceptions and genuinely independent agency require separate factual analysis. Group control alone does not create a PE (art. 6(11)); absence of a registered branch does not establish absence of a PE. Register at commencement and attribute the local business income/expenses into the ordinary company computation.
Departure, asset transfers and liquidation: preserve residence evidence, asset tax cost/location, valuation, ownership and transaction dates. Separate these ordinary events:
These ordinary transaction rules are confirmed in the cited law. A separate migration/deemed-disposal charge and its specific procedure remain unconfirmed below; no universal nil exit charge is asserted.
Individual residence evidence: apply to the competent UJP office using B/PDR under Residence Rulebook arts. 2-3. Domestic applicants attach identity/passport copy and fee proof; foreign applicants also supply passport, residence permit, address registration and supporting residence evidence. UJP can certify a foreign authority's treaty form on request. Do not invent the administrative fee amount.
Corporate relief before payment: Profit Tax Law art. 23 requires the prescribed foreign-tax-authority/UJP-certified form or UJP exemption approval. Profit Rulebook art. 12 identifies ZD-O/DI dividends, ZD-O/KA interest, ZD-O/AP royalties, ZD-O/DP other income, and ZD-DO exemption with residence certificate. Obtain the foreign certification, submit the required copies and supporting papers through the domestic payer to the competent UJP regional office before payment. Repeated same-basis payments have the rulebook's first-payment submission route. Retain the endorsed form/decision; absent it, withhold domestic tax. Payer is liable for the shortfall if relief conditions fail.
Corporate refunds: the foreign recipient applies to the competent UJP regional office with certified ZD-V/DI, ZD-V/KA, ZD-V/AP or ZD-V/DP, as appropriate (Profit Rulebook art. 12). Supply receipt/tax-paid and residence/treaty evidence and the designated refund account. UJP refunds excess withholding in domestic currency. Do not state a universal treaty refund claim period without reading that treaty and the applicable limitation rule. UJP issues tax-paid confirmation on nonresident request (Profit Tax Law art. 23(4)).
Individual relief/refund: Individual Treaty Rulebook arts. 2-6 uses B-IDD for exemption and the category-specific B-IDD/VD form named in art. 3, certified by the foreign authority and UJP before payment. The rulebook's art. 4 also prints the older suffix /VP; obtain the current UJP category form rather than treating the inconsistent suffix as a different substantive relief. Articles 7-8 identify refund forms B-VD/VD by income type and B-VD/KD for capital gains. Retain foreign residence, payment and withholding evidence; no automatic relief just because a treaty exists.
Payments and reports: corporate WHT is remitted at payment (art. 20). Domestic legal persons, registered individual businesses and local PEs are the specified remitters. File the annual DD-I by 15 February 2027 for 2026 (art. 24; Profit Rulebook art. 12). Individual payer calculations are electronic before each covered payment, with remittance at payment (PIT arts. 84-85, 92). Nonresident self-assessed receipts follow art. 89 and certified relief under art. 89-a.
Residents' foreign receipts: generally e-PDD calculation/evidence by the 10th of next month, payment by the 15th (PIT arts. 88, 93). Foreign salary/pension with foreign tax paid instead has the express calculation/evidence deadline 31 March 2027 for 2026 income (art. 88(2)). Convert individual foreign income at National Bank middle rate on the income date (art. 93(2)). Annual individual return is provided by 30 April, confirmed/corrected by 31 May, balance paid by 30 June next year (arts. 96-100). Company/PE DB and final payments follow the corporate skill; foreign tax evidence does not extend those deadlines. Update registrations after a real move or cessation and retain final-period filings and relief records.
Profit Tax Law art. 45 covers failure to withhold at payment and file the required report: corporate micro EUR 300-1,000, small 600-2,000, medium 1,800-6,000, large 3,000-10,000, in MKD equivalent; responsible-person ranges respectively EUR 50-250, 100-500, 150-500, 200-500. Registered individual business remitters EUR 100-250, ordinary physical remitters EUR 50-250 apply to the listed offences. PIT arts. 107-108 separately cover individual calculations and payers. Failure of treaty paperwork leaves the payer liable for domestic tax shortfall (Profit Tax Law art. 23(3); PIT art. 83). Interest under Tax Procedure Law art. 123 is 0.03% daily from day after maturity.
For each treaty case, save the actual operative treaty/protocol and application dates from the official register. Identify the income article, residence, PE/business-profit interaction, beneficial owner and anti-abuse conditions. A maximum treaty rate never creates a domestic charge where domestic law exempts the receipt. Check the particular mutual-agreement/corresponding-adjustment provisions for double-tax disputes; no universal MAP deadline is asserted.
VAT foreign-person registration and imported-service reverse charge remain separate (north-macedonia-vat). Social cover follows the specific insurance agreement/status (north-macedonia-social-contributions), not a tax-treaty residence conclusion. Related-party pricing and withholding require separate tests even on the same payment. Minimum global top-up taxation is outside this ordinary income-tax skill.
Simple: foreign corporate royalty, net contract without treaty relief. A listed royalty is promised at 90,000 net. No domestic exception or certified treaty relief applies. Under arts. 20-22 gross is 100,000, WHT 10,000 and recipient cash 90,000. The payer remits 10,000 at payment; payer-borne WHT also needs its corporate deductibility adjustment under art. 9(1)(13).
name: MK 2026 nonresident royalty gross up
inputs:
promised_net: 90000
rate: 0.10
steps:
- gross: promised_net / (1 - rate)
- withholding: gross * rate
- recipient_cash: gross - withholding
expected:
gross: 100000
withholding: 10000
recipient_cash: 90000
Edge: foreign corporate tax above the credit ceiling. A resident's foreign profit is 100,000 on the domestic tax base, with foreign profit tax 18,000 evidenced by the foreign authority. Art. 37 limits credit to 10,000, so local residual tax on that profit is zero and 8,000 is above the allowable local credit. This does not establish an unused-credit carryforward or foreign refund right.
name: MK 2026 foreign profit credit cap
inputs:
foreign_profit: 100000
foreign_tax: 18000
steps:
- local_tax: foreign_profit * 0.10
- credit: min(foreign_tax, local_tax)
- residual: max(0, local_tax - credit)
- excess_foreign: foreign_tax - credit
expected:
local_tax: 10000
credit: 10000
residual: 0
excess_foreign: 8000
Not yet confirmed: Standalone migration/deemed-disposal or exit-tax rules and their filing/payment procedure. The retrieved PIT, profit-tax and procedural texts establish ordinary realisation/liquidation rules but do not verify a nil exit charge; departure cases remain incomplete.
Contributed by Michael Cutajar.
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