End-to-end workflow for a self-employed individual in North Macedonia: registers or confirms business-activity status with UJP, reconciles income and deductible expenses for the annual tax balance (10% PIT on net income), computes 28% social contributions against the self-employed contribution base, handles VAT obligations under DDV-04 where turnover exceeds MKD 2,000,000, and finalises the annual PIT return due 15 March with final settlement by 30 June.
Establish the client's residency status, legal form of activity, and registration with the Public Revenue Office (UJP). Determine whether the client operates under the lump-sum (paušal) regime or the net-income (tax balance) basis, and confirm whether annual turnover crosses the MKD 1,000,000 business-registration threshold or the MKD 2,000,000 VAT-registration threshold.
Gather all revenue records — invoices, platform payouts (Stripe, PayPal, Upwork), and bank statement credits from NLB Banka, Komercijalna Banka, Stopanska Banka, or similar — and reconcile them to the business income figure. For VAT-registered clients, strip out the 18% DDV collected so that only net income (excluding VAT) enters the PIT base. Classify any service-contract (договор на дело) income separately as it is PIT-only with no social contributions.
Identify and classify deductible business costs that reduce net income before applying the flat 10% PIT. Clear-cut deductibles include office rent, accountancy fees, software subscriptions, IT infrastructure, and marketing. Mixed-use items (home office, vehicle fuel, phone/internet) require a confirmed business-use percentage and supporting evidence; the conservative default is 0% until confirmed. Entertainment is treated as non-deductible unless the wholly-and-exclusively test is satisfied.
Compute the 28% mandatory social contributions (pension/disability 18.8%, health 7.5%, unemployment 1.2%, additional 0.5%) for the self-employed client. The contribution base is the monthly net income, floored at MKD 31,577/month and capped at MKD 757,848/month (12 average gross salaries for 2025). Confirm that monthly advance contribution payments have been made and reconcile any shortfall or overpayment.
For clients whose turnover exceeds MKD 2,000,000, prepare the periodic VAT return (DDV-04) due within 25 days after each VAT period, with payment within 30 days. Reconcile output VAT (18% DDV collected on invoices) against input VAT (DDV paid on business purchases). This phase is skipped for clients below the VAT threshold.
Compute the annual PIT liability at the flat 10% rate on net business income from the tax balance (Данок на личен доход). Reconcile monthly advance payments (equal to one-twelfth of the prior year's liability) against the final annual liability. Prepare the annual accounts and self-employed tax return for submission to UJP by 15 March of the following year, with any balance due settled by 30 June.
Submit the annual accounts and PIT return to UJP via the e-Danoci portal by 15 March. Pay any residual PIT balance by 30 June. Review the PRO draft return (if issued by 30 April) and confirm or correct it by 31 May — if no action is taken the draft becomes final automatically. Set up monthly advance payments for the next tax year equal to one-twelfth of this year's final liability.
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North Macedonia Tax Optimization
Use this skill whenever asked about reducing tax in North Macedonia, tax planning, or lega
North Macedonia Personal Income Tax -- Individuals & Self-Employed
Use this skill whenever asked about North Macedonia (Republic of North Macedonia) personal