North Macedonia Income Tax

North Macedonia Personal Income Tax -- Individuals & Self-Employed Skill v0.1

Tier 2 (research-verified) skill. Figures below are drawn from PwC Worldwide Tax Summaries, the Eurofast North Macedonia Tax Card 2025 / Payroll Guide 2025, and Bloomberg Tax reporting the Public Revenue Office's January 2025 wage-threshold clarification. Several material figures (the 28% contribution split, the MKD 10,270 personal exemption, the MKD 63,154 average salary, and the MKD 31,577 / 1,010,464 / 757,848 contribution bases) could not be re-rendered directly from a machine-readable UJP/Ministry of Finance page during research and should be reconfirmed against the official UJP "contribution bases" table and the State Statistical Office average-salary release before sign-off. Items marked [RESEARCH GAP — reviewer to confirm] are unresolved.

Section 1 -- Quick Reference

Quick Reference

Field	Value
Country	North Macedonia (Republic of North Macedonia)
Tax	Personal Income Tax -- PIT (данок на личен доход)
Currency	MKD (Macedonian denar) only
Tax year	Calendar year (1 January -- 31 December)
Primary legislation	Law on Personal Income Tax (Закон за данокот на личен доход), Official Gazette 241/2018 and subsequent amendments
Supporting legislation	Law on Mandatory Social Insurance Contributions; Law on Value Added Tax; Labour Relations Law (Official Gazette 62/05 and amendments)
Tax authority	Public Revenue Office (Управа за јавни приходи -- UJP / PRO), www.ujp.gov.mk; policy set by Ministry of Finance (finance.gov.mk)
Filing portal	UJP e-Services / e-Tax (e-Danoci); MPIN salary system for payroll
Annual draft return	PRO delivers draft by 30 April; taxpayer confirms/corrects by 31 May of the following year [PwC, Tax administration]
Self-employed annual return	15 March of the following year; final settlement by 30 June [PwC, Tax administration]
Validated by	Pending — requires sign-off by a North Macedonia licensed accountant / tax advisor
Validation date	Pending
Skill version	0.1

PIT Rate Schedule (2025)

North Macedonia applies a flat tax, not progressive brackets. There is no cumulative-bracket table; each income type is taxed at a single rate.

PIT Rate Schedule (2025)

PIT Rate Schedule (2025)

Income type	Rate	Source
Employment income	10%	PwC, Taxes on personal income
Self-employment / business income	10%	PwC, Taxes on personal income
Royalties and industrial-property rights	10%	PwC, Taxes on personal income
Sale of own agricultural products	10%	PwC, Taxes on personal income
Rental income	10%	PwC, Taxes on personal income
Income from capital (dividends, interest)	10%	PwC, Taxes on personal income
Capital gains (taxable)	10%	PwC, Taxes on personal income
Insurance income	10%	PwC, Taxes on personal income
Other uncategorised taxable income	10%	PwC, Taxes on personal income
Gains from games of chance	15%	PwC, Taxes on personal income
Income of unproven origin	70%	PwC, Taxes on personal income
Capital gains on securities / investment-fund shares held > 2 years	0% (exempt)	PwC, Taxes on personal income
Gains from termed deposits	0% (taxation postponed until EU accession)	PwC, Taxes on personal income

PIT Rate Schedule (2025)

There are no progressive bands. The flat 10% is the headline rate for almost all income. Personal relief takes the form of a fixed monthly exemption (see below), not a 0% band.

Social Contribution Rates (2025) -- borne entirely by the employee on gross salary

Social Contribution Rates (2025)

Class (Macedonian)	Employee rate	Employer rate	Source
Pension and disability insurance (Пензиско и инвалидско осигурување)	18.8%	0%	PwC, Other taxes
Health insurance (Здравствено осигурување)	7.5%	0%	PwC, Other taxes
Unemployment insurance (Осигурување во случај на невработеност)	1.2%	0%	PwC, Other taxes
Additional health / disability (work-injury / occupational-disease)*	0.5%	0%	PwC, Other taxes
TOTAL mandatory social contributions	28.0%	0%	Eurofast Tax Card 2025

Social Contribution Rates (2025) -- borne entirely by the employee on gross salary

*The 0.5% component is labelled "additional health insurance" by PwC and "disability" by the Eurofast Tax Card; both agree on the 0.5% rate and the 28% total.

Arithmetic check: 18.8 + 7.5 + 1.2 + 0.5 = 28.0% (employee column). Employer column: 0 + 0 + 0 + 0 = 0%. North Macedonia has no separate employer-side social contribution — the entire burden sits on the employee's gross salary and is withheld/remitted by the employer [PwC; Eurofast Tax Card 2025].

Contribution Bases (2025)

Contribution Bases (2025)

Base	Amount (per month)	Basis	Source
National average gross salary (reference)	MKD 63,154	State Statistical Office figure published Jan 2025	PwC, Other taxes
Minimum contribution base (floor)	MKD 31,577	50% of average gross salary (63,154 × 0.50)	Bloomberg Tax citing PRO
Maximum contribution base — employees (ceiling)	MKD 1,010,464	16 average gross salaries (63,154 × 16)	Bloomberg Tax citing PRO
Maximum contribution base — self-employed	MKD 757,848	12 average gross salaries (63,154 × 12)	Bloomberg Tax citing PRO

Contribution Bases (2025)

Arithmetic check: 63,154 × 0.50 = 31,577 ✓ · 63,154 × 16 = 1,010,464 ✓ · 63,154 × 12 = 757,848 ✓. Ceiling (1,010,464) ≥ floor (31,577) ✓.

Personal Exemption & Wage Reference Figures (2025)

Personal Exemption & Wage Reference Figures (2025)

Item	Amount	Source
Monthly personal tax-free exemption (salary only)	MKD 10,270 / month	Eurofast Tax Card 2025
Minimum gross wage (effective March 2025)	MKD 36,037 / month (net ≈ MKD 24,379; hourly ≈ MKD 207)	Pepeljugoski law office
Business-activity registration threshold	MKD 1,000,000 total annual income	PwC, Income determination
VAT registration threshold	MKD 2,000,000 turnover	Company Formation Macedonia

Conservative Defaults

Conservative Defaults

Ambiguity	Default
Unknown income type	Treat as "other income" at flat 10% — do NOT assume an exemption applies
Unknown whether income is salary	Do NOT apply the MKD 10,270 exemption (it is salary-only)
Unknown employment vs service-contract status	Service contract (PIT only, no social contributions on it) [Eurofast]
Unknown gross-vs-net of a salary figure	STOP — ask whether the figure is gross or net before computing
Unknown contribution base relief	Apply contributions on actual gross between the floor and ceiling
Unknown self-employed contribution ceiling	Use self-employed maximum base MKD 757,848/month
Unknown allowance-style base reduction	Do NOT apply (use full gross) until reviewer confirms the income category
Unknown VAT registration status	Assume not registered (no VAT split) until confirmed

Section 2 -- Required Inputs and Refusal Catalogue

Required Inputs

Minimum viable — for a salary computation: the gross monthly salary in MKD and confirmation that the figure is gross. For self-employment: the annual net business income (tax balance) or a full-year bank statement in CSV, PDF, or pasted text, plus confirmation of resident status.

Recommended — payslips / MPIN declarations for the year, the income category for each receipt (employment, service contract, rental, royalty, agricultural, capital, capital gain), SSC payment records, prior-year tax balance, VAT registration status.

Ideal — complete income and expenditure account for self-employed clients, asset register, prior-year annual accounts / tax balance, evidence supporting any base reductions (agricultural sales, IP rights, property lease deductions).

Refusal if minimum is missing — SOFT WARN. No salary figure / no bank statement at all = hard stop. A salary figure with no gross/net confirmation = hard stop (the entire computation hinges on it). A bank statement without supporting invoices for a self-employed client = proceed with reviewer warning: "This computation was produced from the bank statement alone. The reviewer must verify the income categorisation and that any base reductions or deductible contributions are supported."

Refusal Catalogue

• R-MK-1 — Gross/net of salary unknown — "The whole gross-to-net calculation depends on whether the figure is the gross salary (бруто плата) or the net salary (нето плата). This skill cannot compute tax without that confirmation. Please confirm before proceeding."
• R-MK-2 — Companies / legal entities — "This skill covers individuals and sole self-employed persons only. Profit tax for companies (corporate income tax) is a separate regime. Escalate to a North Macedonia licensed accountant."
• R-MK-3 — Non-resident / cross-border income — "Non-resident taxation, double-tax-treaty relief, and foreign-salary positions require specialised analysis. Out of scope here (note: salary received from abroad must be reported by 31 March of the following year [PwC]). Escalate to a licensed accountant." (PwC)
• R-MK-4 — Income of unproven origin — "Income of unproven origin is taxed at 70% and triggers a formal PRO assessment. Do not self-classify. Escalate to a licensed accountant immediately."
• R-MK-5 — Games of chance / gambling — "Gains from games of chance are taxed at a special 15% rate with their own reporting. Confirm the exact nature before applying any rate. Escalate if material."
• R-MK-6 — VAT return requested — "This skill covers personal income tax and social contributions only. For North Macedonia VAT (DDV-04), use the dedicated VAT skill."
• R-MK-7 — Arrears / enforcement — "Client has outstanding tax arrears or is subject to PRO enforcement. Assessed tax under a Tax Assessment resolution must be paid within 15 days of delivery [PwC]; specific penalty amounts under the PIT Law for individuals are a research gap. Escalate to a licensed accountant." (PwC)

Section 3 -- Transaction Pattern Library

This is the deterministic pre-classifier. When a bank statement transaction matches a pattern below, apply the treatment directly. Do not second-guess. If none match, fall through to Tier 1 rules in Section 5.

How to read this table. Match by case-insensitive substring on the counterparty name or description as it appears in the bank statement. Macedonian terms are given alongside Latin transliterations and English. If multiple patterns match, use the most specific. If none match, fall through to Tier 1 rules.

3.1 Income Patterns (Credits on Bank Statement)

3.1 Income Patterns (Credits on Bank Statement)

Pattern	Income category	Treatment	Notes
ПЛАТА, PLATA, SALARY, НЕТО ПЛАТА	Employment income	10% PIT via MPIN	Gross-to-net already applied by employer; net hits account
ХОНОРАР, HONORAR, ДОГОВОР НА ДЕЛО, SERVICE CONTRACT, FEE	Service-contract income	10% PIT, NO social contributions	Withheld/declared by payer if a legal entity [Eurofast]
ФАКТУРА, INVOICE, UPLATA OD KLIENT, CLIENT PAYMENT	Self-employment / business income	10% on net income (tax balance)	If VAT-registered, extract net (excl. 18% VAT)
STRIPE PAYOUT, PAYPAL, WISE PAYOUT, REVOLUT	Business income	10% on net income	Platform payout — match to invoices
UPWORK, FIVERR, TOPTAL	Business income	10% on net income	Freelance platform — net of platform commission
КИРИЈА, KIRIJA, RENT RECEIVED, ЗАКУП	Rental income	10% (after lease base reduction)	Unfurnished 10% deduction; furnished 15% deduction [PwC]
КАМАТА, KAMATA, INTEREST RECEIVED	Income from capital	10%	Interest income
ДИВИДЕНДА, DIVIDENDA, DIVIDEND	Income from capital	10%	Dividend income
АВТОРСКИ ПРАВА, ROYALTY, IP RIGHTS	Royalties / IP	10% on 90% of gross (base = 90%)	IP-rights base reduced to 90% of gross [PwC]
ЗЕМЈОДЕЛСКИ ПРОИЗВОДИ, AGRICULTURAL SALE	Agricultural sales	10% on 80% of gross (20% reduction)	Own agricultural products base reduced by 20% [PwC]
ИГРИ НА СРЕЌА, LOTARIJA, GAMES OF CHANCE, WINNINGS	Games of chance	15% special rate	NOT 10% — special rate [PwC]
ПОВРАТ НА ДАНОК, TAX REFUND	EXCLUDE	Not income	PRO refund from prior period
ГРАНТ, GRANT, SUBVENCIJA	Check nature	Capital grant EXCLUDE; revenue grant taxable	Confirm nature before classifying

3.2 Expense / Deduction Patterns (Debits) -- Self-Employed Business Costs

For self-employed individuals taxed on net business income (tax balance), ordinary business costs reduce the net income before applying 10%. Match these as deductible business expenses.

3.2 Expense / Deduction Patterns (Debits) -- Self-Employed Business Costs

3.2 Expense / Deduction Patterns (Debits) -- Self-Employed Business Costs

Pattern	Category	Treatment	Notes
КАНЦЕЛАРИСКА КИРИЈА, OFFICE RENT	Office rent	Deductible business cost	Dedicated business premises
СМЕТКОВОДИТЕЛ, ACCOUNTANT, BOOKKEEP	Accountancy fees	Deductible business cost
АДВОКАТ, LAWYER, LEGAL (business)	Legal fees	Deductible business cost	Must be business-related
МАРКЕТИНГ, GOOGLE ADS, META ADS, ADVERTISING	Marketing/advertising	Deductible business cost
СОФТВЕР, SOFTWARE, GOOGLE WORKSPACE, MICROSOFT 365, ADOBE	Software subscription	Deductible business cost	Recurring subscription = operating expense
ANTHROPIC, OPENAI, GITHUB, AWS, HOSTING, DOMAIN	IT infrastructure	Deductible business cost
БАНКАРСКА ПРОВИЗИЈА, BANK FEE, CHARGE	Bank charges	Deductible business cost	Business account only
STRIPE FEE, PAYPAL FEE, TRANSACTION FEE	Payment processing fees	Deductible business cost
ОБУКА, TRAINING, COURSE, SEMINAR, CONFERENCE	Training	Deductible business cost	Must relate to current business

3.3 Expense Patterns (Debits) -- Mixed Use (Reviewer Judgement)

3.3 Expense Patterns (Debits) -- Mixed Use (Reviewer Judgement)

Pattern	Category	Tier	Notes
ЕВН, EVN, ЕЛЕКТРИЧНА ЕНЕРГИЈА, ELECTRICITY	Electricity	T2 if home office	100% if dedicated office; proportional if home
МАКЕДОНСКИ ТЕЛЕКОМ, A1, TELEKOM, BROADBAND	Telecoms/broadband	T2	Business-use portion only; default 0% if mixed
МОБИЛЕН, MOBILE, A1 MOBILE	Phone	T2	Business-use portion only
ГОРИВО, GORIVO, FUEL, OKTA, MAKPETROL, PETROL	Vehicle fuel	T2 — business % only	Requires mileage log
ПАРКИНГ, PARKING	Parking	T2 — business % only

3.4 Expense Patterns (Debits) -- NOT Deductible / Not a Business Cost

3.4 Expense Patterns (Debits) -- NOT Deductible / Not a Business Cost

Pattern	Category	Treatment	Notes
РЕСТОРАН, RESTAURANT, ENTERTAINMENT, CLIENT MEAL	Entertainment	Reviewer judgement — default NOT deductible	Confirm wholly-and-exclusively basis
ЛИЧНО, PERSONAL, СУПЕРМАРКЕТ, SUPERMARKET, RAMSTORE	Personal expenses	NOT deductible	Private living costs
КАЗНА, KAZNA, FINE, PENALTY	Fines/penalties	NOT deductible	Public policy
ДАНОК, TAX PAYMENT, PIT PAYMENT	Tax payments	NOT deductible	Income tax cannot reduce income
ПОДИГНУВАЊЕ, DRAWINGS, PERSONAL WITHDRAWAL	Drawings	NOT deductible	Not an expense

3.5 Statutory Items (Neither ordinary income nor ordinary expense)

3.5 Statutory Items (Neither ordinary income nor ordinary expense)

Pattern	Treatment	Notes
ПРИДОНЕСИ, PRIDONESI, SOCIAL CONTRIBUTIONS, ПИО, ФЗОМ	Social contributions (28%)	Deductible from the PIT base on employment income [Eurofast]; on salary, withheld via MPIN before PIT
INTERNAL TRANSFER, OWN ACCOUNT, СОПСТВЕНА СМЕТКА	EXCLUDE	Own-account transfer
КРЕДИТ, LOAN, ОТПЛАТА НА КРЕДИТ, LOAN REPAYMENT	EXCLUDE	Loan principal movement
ДДВ, DDV, VAT PAYMENT	EXCLUDE	VAT liability payment, not an income-tax expense

3.6 Macedonian Banks -- Statement Format Reference

3.6 Macedonian Banks -- Statement Format Reference

Bank	Common Patterns	Notes
NLB Banka	ТРАНСФЕР, УПЛАТА, ИСПЛАТА, ПРОВИЗИЈА	PDF/CSV; date format DD.MM.YYYY
Komercijalna Banka	TRANSFER, NALOG, NAKNADA	PDF; counterparty in description field
Stopanska Banka	УПЛАТА, ИСПЛАТА, ТРОШОК	PDF/CSV
Halkbank / Sparkasse / ProCredit	PAYMENT, TRANSFER, FEE	CSV available; clean counterparty names
Revolut / Wise (held by MK residents)	PAYMENT, TRANSFER, CONVERSION	CSV; multi-currency — use MKD-equivalent amounts

Section 4 -- Worked Examples

All examples use the 2025 methodology: monthly salary PIT = (gross − 28% social contributions − MKD 10,270 personal exemption) × 10% [Eurofast Payroll Guide 2025]. Each figure is recomputed end-to-end below.

Example 1 -- Employee at the national average gross salary

Input line: 25/03/2025 ; NLB PLATA ; DELOVNO DRUSTVO XYZ DOOEL ; PLATA MART ; +41,950.79 ; MKD

Reasoning: Gross salary MKD 63,154 (the 2025 average). Gross is above the floor (31,577) and below the ceiling (1,010,464), so contributions apply on the full gross.

• Social contributions: 63,154 × 28% = MKD 17,683.12
• After contributions: 63,154 − 17,683.12 = MKD 45,470.88
• Less personal exemption: 45,470.88 − 10,270 = MKD 35,200.88 (PIT base)
• PIT at 10%: 35,200.88 × 0.10 = MKD 3,520.09
• Net pay: 45,470.88 − 3,520.09 = MKD 41,950.79

Classification: Contributions MKD 17,683.12; PIT MKD 3,520.09; net pay MKD 41,950.79. (Reconciles to the credit line.)

Example 2 -- Minimum-wage employee

Input line: 25/04/2025 ; KOMERCIJALNA ; FIRMA ABC ; NETO PLATA ; +24,378.98 ; MKD

Reasoning: Minimum gross wage MKD 36,037 (effective March 2025). Above the floor, below the ceiling.

• Social contributions: 36,037 × 28% = MKD 10,090.36
• After contributions: 36,037 − 10,090.36 = MKD 25,946.64
• Less personal exemption: 25,946.64 − 10,270 = MKD 15,676.64 (PIT base)
• PIT at 10%: 15,676.64 × 0.10 = MKD 1,567.66
• Net pay: 25,946.64 − 1,567.66 = MKD 24,378.98 ≈ MKD 24,379 (matches published minimum-wage net)

Classification: Contributions MKD 10,090.36; PIT MKD 1,567.66; net pay MKD 24,379.

Example 3 -- Higher-paid employee (below the ceiling)

Input line: 25/05/2025 ; STOPANSKA ; TECH DOO ; PLATA MAJ ; +78,787.00 ; MKD

Reasoning: Gross salary MKD 120,000. Still below the ceiling (1,010,464), so contributions on full gross.

• Social contributions: 120,000 × 28% = MKD 33,600.00
• After contributions: 120,000 − 33,600 = MKD 86,400.00
• Less personal exemption: 86,400 − 10,270 = MKD 76,130.00 (PIT base)
• PIT at 10%: 76,130 × 0.10 = MKD 7,613.00
• Net pay: 86,400 − 7,613 = MKD 78,787.00

Classification: Contributions MKD 33,600; PIT MKD 7,613; net pay MKD 78,787.

Example 4 -- Service-contract (договор на дело) income -- PIT only, no contributions

Input line: 12/06/2025 ; NLB ; AGENCIJA MEDIA DOO ; HONORAR DOGOVOR NA DELO ; +45,000.00 ; MKD

Reasoning: Service-contract income paid by a legal entity to an individual is subject only to PIT — no social contributions [Eurofast Tax Card 2025]. The MKD 10,270 salary exemption does not apply (it is salary-only). The payer withholds/declares.

• PIT at 10%: 45,000 × 0.10 = MKD 4,500.00
• Net to individual: 45,000 − 4,500 = MKD 40,500.00

Classification: PIT MKD 4,500; no contributions; net MKD 40,500. File via the monthly PIT calculation by the 10th, pay by the 15th of the following month [PwC].

Example 5 -- Self-employed annual net business income

Input: Self-employed individual keeping accounting records; annual net income (tax balance) for 2025 = MKD 800,000.

Reasoning: Self-employment / business income is taxed at the flat 10% on net income from the tax balance [PwC]. No dedicated lump-sum/presumptive PIT regime was located [RESEARCH GAP — reviewer to confirm whether a presumptive regime exists for small craftsmen/entrepreneurs]. Contributions are computed separately on a contribution base capped at the self-employed maximum (MKD 757,848/month).

• Annual PIT: 800,000 × 0.10 = MKD 80,000.00

Filing: annual accounts + annual tax return by 15 March of the following year; final settlement by 30 June; monthly advance payments equal one-twelfth of the prior year's liability [PwC].

Classification: Annual PIT MKD 80,000 (excl. social contributions, computed separately).

Example 6 -- Games-of-chance winnings (special 15% rate)

Input line: 30/07/2025 ; HALKBANK ; LOTARIJA NA MK ; DOBIVKA IGRI NA SREKA ; +100,000.00 ; MKD

Reasoning: Gains from games of chance are taxed at the special 15% rate, not 10% [PwC].

• PIT at 15%: 100,000 × 0.15 = MKD 15,000.00

Classification: PIT MKD 15,000 at the games-of-chance rate. Do NOT apply 10% and do NOT apply the salary exemption.

Example 7 -- Salary above the contribution ceiling

Input: Gross monthly salary MKD 1,200,000 (above the employee ceiling base of MKD 1,010,464).

Reasoning: Contributions are capped: they apply only on the ceiling base, not the full gross.

• Contributions: 1,010,464 × 28% = MKD 282,929.92 (capped)
• After contributions: 1,200,000 − 282,929.92 = MKD 917,070.08
• Less personal exemption: 917,070.08 − 10,270 = MKD 906,800.08 (PIT base)
• PIT at 10%: 906,800.08 × 0.10 = MKD 90,680.01
• Net pay: 917,070.08 − 90,680.01 = MKD 826,390.07

Classification: Contributions MKD 282,929.92 (capped at the ceiling); PIT MKD 90,680.01; net pay MKD 826,390.07. Note PIT itself is NOT capped — only the contribution base is.

5.1 The Flat 10% Rule

• The Flat 10% Rule — PIT is a flat 10% on virtually all income types — employment, self-employment/business, rental, capital (dividends/interest), taxable capital gains, royalties, agricultural sales, insurance, and other uncategorised income — for tax year 2025 [PwC]. Two special rates override the flat rate: 15% on games-of-chance gains and 70% on income of unproven origin [PwC]. (Law on Personal Income Tax (Official Gazette 241/2018 and amendments))

5.2 Gross-to-Net Salary Computation

• Order of operations for salary — 1. Start from gross salary (бруто плата). 2. Deduct 28% social contributions (on gross between floor and ceiling). 3. Deduct the MKD 10,270 monthly personal exemption. 4. Apply 10% PIT to the remainder (the PIT base). 5. Net pay = gross − contributions − PIT. All payments (net wage, contributions, PIT) are remitted concurrently via a single encrypted payment order — the MPIN salary declaration [Eurofast]. (Law on Mandatory Social Insurance Contributions; Eurofast Payroll Guide 2025)

5.3 Social Contributions

• Social Contributions rule — Total mandatory contributions are 28% of gross salary (pension/disability 18.8%, health 7.5%, unemployment 1.2%, additional/disability 0.5%), all borne by the employee and withheld/remitted by the employer; there is no separate employer-side contribution [PwC; Eurofast Tax Card 2025]. Contributions are levied on gross salary between a floor of MKD 31,577/month and a ceiling of MKD 1,010,464/month for 2025 [Bloomberg Tax citing PRO]. For self-employed persons the maximum contribution base is MKD 757,848/month (12 average salaries) [Bloomberg Tax citing PRO]. Contributions on employment income are fully deductible when computing the PIT base [Eurofast Tax Card 2025]. (Law on Mandatory Social Insurance Contributions)

5.4 The Personal Exemption (salary only)

• Personal exemption rule — The 2025 monthly personal tax-free exemption is MKD 10,270, deducted from salary before applying 10% PIT [Eurofast]. Apply it only to salary/employment income — do not assume it applies to service contracts, business income, rental, or other categories (see Conservative Defaults). (Eurofast Tax Card 2025)

5.5 Income-Category Base Reductions

5.5 Income-Category Base Reductions (Law on Personal Income Tax (per PwC, Income determination))

Income category	Base	Source
Sale of own agricultural products	Gross reduced by 20% (base = 80%)	PwC, Income determination
Royalties / industrial-property rights	Base = 90% of gross	PwC, Income determination
Unfurnished property lease	10% deduction from gross rent	PwC, Income determination
Furnished property lease	15% deduction from gross rent	PwC, Income determination

5.5 Income-Category Base Reductions

• Mutual exclusivity note — Apply 10% PIT to the reduced base. Do not stack the salary exemption on top of these — they are mutually exclusive categories. (Law on Personal Income Tax (per PwC, Income determination))

5.6 Capital Gains

• Capital Gains rule — Taxable capital gains are taxed at 10%. Exempt: capital gains on securities and investment-fund shares held longer than two years (0%); gains from termed deposits are not taxed until EU accession [PwC]. (Law on Personal Income Tax (per PwC))

5.7 Self-Employed / Business Income

• Self-Employed / Business Income rule — Self-employed individuals who keep accounting records are taxed at 10% on net income from the tax balance. They file annual accounts and an annual tax return by 15 March of the following year, with final settlement by 30 June; monthly advance payments equal one-twelfth of the prior year's liability [PwC]. No dedicated lump-sum/presumptive regime for small entrepreneurs/craftsmen was located [RESEARCH GAP — reviewer to confirm]. (Law on Personal Income Tax (per PwC))

5.8 Registration & VAT Interaction

5.8 Registration & VAT Interaction

Trigger	Requirement	Source
Total annual income > MKD 1,000,000	Register a business activity by 15 January of the following year	PwC, Income determination
Turnover > MKD 2,000,000 (prior year or expected)	VAT registration required	Company Formation Macedonia
VAT return (DDV-04)	File within 25 days after period end; pay within 30 days	Company Formation Macedonia

5.8 Registration & VAT Interaction

• VAT net income note — For VAT-registered self-employed clients, report business income net of VAT (VAT collected is a liability, not income).

5.9 Filing & Deadlines

5.9 Filing & Deadlines

Item	Detail	Source
Annual draft return (pre-filled by PRO)	PRO delivers draft by 30 April; taxpayer confirms/corrects by 31 May; if no action, becomes final automatically	PwC, Tax administration
Self-employed annual accounts + return	15 March of the following year; final settlement by 30 June	PwC, Tax administration
Monthly PIT (service-contract & other non-salary income)	File by the 10th of the following month; pay by the 15th	PwC, Tax administration
MPIN salary declaration	Submitted concurrently with monthly net-salary payment	Eurofast Payroll Guide 2025
Foreign-salary reporting	By 31 March of the following year	PwC, Tax administration
VAT return (DDV-04)	Within 25 days after period; VAT paid within 30 days	Company Formation Macedonia

5.10 Assessments & Penalties

5.10 Assessments & Penalties

Item	Detail	Source
PRO denial of draft return	A Tax Assessment Form (resolution) is issued; assessed tax payable within 15 days of delivery	PwC, Tax administration
Administrative penalties (general)	Eurofast Tax Card lists administrative penalties for companies; specific MKD penalty amounts for individuals/self-employed under the PIT Law were not located	[RESEARCH GAP — reviewer to confirm from PIT Law / UJP penalty schedule]

6.1 Home Office / Mixed-Use Premises (self-employed)

• Calculate the proportion of the home used for business and apply it to utilities, rent, and internet.
• Must be a genuinely dedicated workspace.
• Conservative default: 0% deduction until the reviewer confirms the arrangement.
• Flag for reviewer: Confirm the floor-area basis and that the workspace is dedicated.

6.2 Motor Vehicle Business Use (self-employed)

• Only the business-use percentage of fuel, insurance, and maintenance is deductible; requires a mileage log.
• Conservative default: 0% business use until a mileage log is provided.

6.3 Phone / Internet Mixed Use

• Business-use portion only; client must give a reasonable estimate.
• Conservative default: 0% deduction until the business percentage is confirmed.

6.4 Income Categorisation (which rate / which reduction)

• Whether a receipt is salary, service-contract income, business income, rental, royalty, or "other" changes the rate base, whether the MKD 10,270 exemption applies, and whether contributions are due.
• Flag for reviewer: Confirm the legal category of each material receipt before applying a reduction or exemption.

6.5 Entertainment / Client Hospitality (self-employed)

• North Macedonia's specific deductibility limits for entertainment were not pinned to an authoritative figure [RESEARCH GAP — reviewer to confirm].
• Conservative default: Treat as NOT deductible until the reviewer confirms the wholly-and-exclusively basis.

6.6 Contribution Base Floor/Ceiling Edge Cases

• For very low salaries (below the MKD 31,577 floor) contributions may be computed on the floor base rather than actual gross.
• Conservative default: Apply the floor base where gross < floor; flag for reviewer.

6.7 Allowance-Style Base Reductions

• Agricultural (20%), IP rights (base 90%), lease (10%/15%) reductions depend on correct categorisation and documentation.
• Flag for reviewer: Confirm category and supporting evidence before applying a reduction.

Section 7 -- Excel Working Paper Template

NORTH MACEDONIA PERSONAL INCOME TAX -- WORKING PAPER
Tax Year: 2025
Client: ___________________________
Resident: Yes / No
Computation type: Salary (gross-to-net) / Service contract / Self-employed / Other

-------------------------------------------------------
PART A -- MONTHLY SALARY (gross-to-net)
  A1. Gross salary (MKD)                          ___________
  A2. Contribution base (A1, capped 31,577..1,010,464) _______
  A3. Social contributions = A2 x 28%             ___________
        Pension/disability 18.8%   ____________
        Health 7.5%                ____________
        Unemployment 1.2%          ____________
        Additional/disability 0.5% ____________
  A4. Salary after contributions (A1 - A3)        ___________
  A5. Personal exemption                          ( 10,270  )
  A6. PIT base (A4 - A5)                           ___________
  A7. PIT = A6 x 10%                               ___________
  A8. NET PAY (A4 - A7)                            ___________

-------------------------------------------------------------
PART B -- SERVICE CONTRACT (договор на дело)
  B1. Gross fee (MKD)                              ___________
  B2. PIT = B1 x 10%   (NO contributions, NO exemption) ______
  B3. Net to individual (B1 - B2)                  ___________

-------------------------------------------------------------
PART C -- SELF-EMPLOYED (annual)
  C1. Net business income (tax balance)            ___________
  C2. Annual PIT = C1 x 10%                         ___________
  C3. Contributions (separate, base capped 757,848/mo) _______
  C4. Monthly advance = prior-year liability / 12  ___________

-------------------------------------------------------------
PART D -- OTHER CATEGORY INCOME (apply base reduction first)
  D1. Rental (less 10% unfurnished / 15% furnished) _________
  D2. Royalty / IP (base = 90% of gross)           ___________
  D3. Agricultural (base = 80% of gross)           ___________
  D4. Games of chance (rate = 15%, not 10%)        ___________
  D5. PIT on D1-D3 = base x 10%; on D4 = base x 15% ________

REVIEWER FLAGS:
  [ ] Gross vs net of salary confirmed?
  [ ] Income category confirmed for each receipt?
  [ ] Personal exemption applied to salary ONLY?
  [ ] Contributions capped at correct ceiling (employee vs self-employed)?
  [ ] Base reductions (agri/IP/lease) supported by evidence?
  [ ] Games-of-chance at 15% (not 10%)?
  [ ] VAT-registered? Income reported net of VAT?
  [ ] Service-contract income carries PIT only (no contributions)?
  [ ] RESEARCH GAP items reconfirmed against UJP?

Section 8 -- Bank Statement Reading Guide

Macedonian Bank Statement Formats

Macedonian Bank Statement Formats

Bank	Format	Key Fields	Notes
NLB Banka	PDF, CSV	Датум (Date), Опис (Description), Задолжување (Debit), Одобрување (Credit), Состојба (Balance)	Most common; description contains counterparty + reference
Komercijalna Banka	PDF, CSV	Date, Description, Amount, Balance	Counterparty in description field
Stopanska Banka	PDF	Датум, Опис, Износ	Shorter descriptions
Halkbank / ProCredit / Sparkasse	PDF, CSV	Date, Description, Amount, Balance	CSV export available
Revolut / Wise (MK resident)	CSV	Date, Counterparty, Amount, Currency, Reference	Multi-currency — use MKD-equivalent

Key Macedonian Banking & Tax Terms

Key Macedonian Banking & Tax Terms

Term (Macedonian)	Transliteration	English	Classification Hint
Бруто плата	Bruto plata	Gross salary	Starting point for gross-to-net
Нето плата	Neto plata	Net salary	Amount that hits the account
Придонеси	Pridonesi	Contributions	The 28% social contributions
Данок на личен доход	Danok na licen dohod	Personal income tax	The PIT
Хонорар / Договор на дело	Honorar / Dogovor na delo	Fee / Service contract	PIT only, no contributions
Кирија / Закуп	Kirija / Zakup	Rent / Lease	Rental income (base reduction)
Камата	Kamata	Interest	Income from capital
Дивиденда	Dividenda	Dividend	Income from capital
Авторски права	Avtorski prava	Royalties / IP	Base = 90% of gross
Игри на среќа	Igri na sreka	Games of chance	Special 15% rate
Провизија / Трошок	Provizija / Trošok	Fee / Charge	Bank charge (business cost)
Уплата / Исплата	Uplata / Isplata	Inbound / Outbound payment	Check direction for income/expense

Section 9 -- Onboarding Fallback

If the client provides a bank statement or salary figure but cannot answer onboarding questions immediately:

1. Classify all transactions using the pattern library (Section 3).
2. Mark all Tier 2 items as "PENDING -- reviewer must confirm".
3. Apply conservative defaults (Section 1) — including treating ambiguous receipts as "other income" at 10% with no exemption.
4. Generate the working paper (Section 7) with clear flags.
5. Present the following questions to the client:

ONBOARDING QUESTIONS -- NORTH MACEDONIA PERSONAL INCOME TAX
1. Is the salary figure GROSS (бруто) or NET (нето)?
2. Employment status: employee (MPIN salary), service contract (договор на дело), or self-employed with accounting records?
3. For each material receipt: which category — salary, service contract, business, rental, royalty, agricultural, capital, capital gain, or games of chance?
4. Are you VAT-registered (turnover > MKD 2,000,000)?
5. Self-employed: what is the net business income (tax balance) for the year, and what was the prior-year liability (for monthly advances)?
6. Home office / vehicle / phone: any business-use percentage you can document?
7. Did total annual income exceed MKD 1,000,000 (business-registration trigger)?
8. Any income from abroad (foreign salary reportable by 31 March)?
9. Any games-of-chance winnings (taxed at 15%)?

Section 10 -- Reference Material

Key Legislation & Authority References

Key Legislation & Authority References

Topic	Reference	Source
PIT rates & categories	Law on Personal Income Tax (Official Gazette 241/2018 & amendments)	PwC, Taxes on personal income
Social contributions	Law on Mandatory Social Insurance Contributions	PwC, Other taxes
Income determination / base reductions	Law on Personal Income Tax	PwC, Income determination
Filing & administration	Law on Personal Income Tax; UJP procedures	PwC, Tax administration
VAT	Law on Value Added Tax	Company Formation Macedonia
Minimum wage	Labour Relations Law (Official Gazette 62/05 & amendments)	Pepeljugoski law office
Tax authority	Public Revenue Office (UJP / PRO), www.ujp.gov.mk	UJP
Policy	Ministry of Finance, finance.gov.mk	Ministry of Finance

Key 2025 Figures (with provenance)

Key 2025 Figures (with provenance)

Figure	Value	Source
Flat PIT rate	10%	PwC
Games-of-chance rate	15%	PwC
Income-of-unproven-origin rate	70%	PwC
Total social contributions	28% (18.8 + 7.5 + 1.2 + 0.5)	PwC; Eurofast Tax Card 2025
National average gross salary	MKD 63,154/month	PwC; Eurofast
Contribution floor	MKD 31,577/month	Bloomberg Tax citing PRO
Contribution ceiling (employees)	MKD 1,010,464/month	Bloomberg Tax citing PRO
Contribution ceiling (self-employed)	MKD 757,848/month	Bloomberg Tax citing PRO
Personal monthly exemption (salary)	MKD 10,270/month	Eurofast Tax Card 2025
Minimum gross wage (Mar 2025)	MKD 36,037/month (net ≈ 24,379)	Pepeljugoski law office
Business-registration threshold	MKD 1,000,000 annual income	PwC
VAT registration threshold	MKD 2,000,000 turnover	Company Formation Macedonia

Research Caveats

• The 28% split, MKD 10,270 exemption, MKD 63,154 average salary, and MKD 31,577 / 1,010,464 / 757,848 bases come from PwC, Eurofast Tax Card 2025, and Bloomberg Tax (reporting the PRO's January 2025 clarification) rather than directly from a machine-readable UJP/Ministry page. Reconfirm against the official UJP "contribution bases" table and the State Statistical Office average-salary release before publication.
• The 0.5% component is "additional health insurance" (PwC) vs "disability" (Eurofast); both agree on 0.5% and a 28% total.
• Self-employed return deadline: treat 15 March as operative (one secondary source said "end of February / 15 March electronically").
• No presumptive/lump-sum PIT regime for small entrepreneurs/craftsmen was found [RESEARCH GAP — reviewer to confirm].
• Specific MKD penalty amounts under the PIT Law for individuals [RESEARCH GAP — reviewer to confirm].
• Minimum wage MKD 36,037 was effective from March 2025; a further revision took effect 1 March 2026 (out of scope for the 2025 skill).
• Overall research confidence: medium.

Test Suite

Test 1 -- Average-salary employee. Input: Gross MKD 63,154/month, employee. Expected: Contributions = 17,683.12 (63,154 × 0.28); after-contributions 45,470.88; PIT base 35,200.88 (− 10,270); PIT 3,520.09; net pay 41,950.79.

Test 2 -- Minimum-wage employee. Input: Gross MKD 36,037/month, employee. Expected: Contributions = 10,090.36; after-contributions 25,946.64; PIT base 15,676.64; PIT 1,567.66; net pay 24,378.98 (≈ 24,379).

Test 3 -- Higher-paid employee (below ceiling). Input: Gross MKD 120,000/month. Expected: Contributions = 33,600.00; after-contributions 86,400.00; PIT base 76,130.00; PIT 7,613.00; net pay 78,787.00.

Test 4 -- Salary above the contribution ceiling. Input: Gross MKD 1,200,000/month. Expected: Contributions capped = 1,010,464 × 0.28 = 282,929.92; after-contributions 917,070.08; PIT base 906,800.08; PIT 90,680.01; net pay 826,390.07. (PIT is NOT capped; only the contribution base is.)

Test 5 -- Service contract. Input: Service-contract fee MKD 45,000 from a legal entity. Expected: PIT = 4,500 (10%); NO social contributions; NO MKD 10,270 exemption; net 40,500.

Test 6 -- Self-employed annual. Input: Net business income MKD 800,000. Expected: Annual PIT = 80,000 (10%); contributions computed separately on a base capped at MKD 757,848/month; advances = prior-year liability ÷ 12.

Test 7 -- Games of chance (special rate). Input: Winnings MKD 100,000. Expected: PIT = 15,000 (15%, not 10%); no exemption.

Test 8 -- Wrong rate applied (negative test). Input: An agent computes games-of-chance winnings at 10%. Expected: REJECT. Games of chance are 15% [PwC]. Recompute at 15%.

Test 9 -- Exemption misapplied (negative test). Input: An agent deducts the MKD 10,270 exemption from service-contract income. Expected: REJECT. The exemption is salary-only; service-contract income gets neither contributions nor the exemption.

PROHIBITIONS

• NEVER compute a salary net figure without confirming the input is GROSS, not net
• NEVER apply the MKD 10,270 personal exemption to anything other than salary/employment income
• NEVER add a separate employer-side social contribution — North Macedonia has none; the full 28% is on the employee
• NEVER apply 10% to games-of-chance winnings — they are taxed at 15%
• NEVER self-classify income of unproven origin (70%) — escalate
• NEVER apply social contributions to service-contract (договор на дело) income — it is PIT-only
• NEVER cap the PIT itself at the contribution ceiling — only the contribution base is capped
• NEVER stack a category base reduction (agri/IP/lease) on top of the salary exemption — categories are mutually exclusive
• NEVER report VAT collected as income for VAT-registered self-employed clients
• NEVER present a figure marked [RESEARCH GAP] as confirmed — flag it for the reviewer
• NEVER present tax calculations as definitive — always label as estimated

Disclaimer

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