Business Environment

flag North Macedonia North Macedonia: Business Environment

In this page: Accounting Rules | Tax Rates | Intellectual Property | Legal Framework | Standards | Business Practices


Accounting Rules

Tax Year
Calendar year.
Accounting Standards
FYROM uses the standards IAS/IFRS.
Accounting Regulation Bodies
Ministry of Finance
Accounting Reports
The financial statements include: balance sheet, income statement, statement of changes in equity, cash flow statement, significant accounting policies and notes to the related financial statements.
Publication Requirements
All enterprises must submit their activity financial reports annually, at the end of the calendar year.
Professional Accountancy Bodies

Certification and Auditing
Audits must be performed by an audit company registered with the Central Register  or by a certified auditor that operates as a sole proprietor. Entities with more than 50 employees and/or turnover and total assets exceeding EUR 2 million must submit financial and accounting statements for a statutory audit.
You can consult an external auditor: Deloitte; Ernst & Young and KPMG.
Accounting News

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Tax Rates

Consumption Taxes

Nature of the Tax
Value added tax (VAT) - Danok na dodadena vrednost (Local name)
Tax Rate
Reduced Tax Rate
A reduced rate of 5% applies to potable water from public water supply entities; food products; computers; pharmaceuticals and medical devices; raw oil for production of food for human consumption; first sale of new residential buildings (within the first five years); services provided by commercial tourist facilities (hotels, motels and similar facilities).

Restaurant services, specifically serving food and beverages for onsite consumption (except alcoholic beverages), and the supply and import of electricity for households (from 1 July 2022 to 30 June 2023) are subject to a reduced rate of 10%.

International air transport of passengers, the supply of precious metals for the central bank and the supply, repair and maintenance, chartering and leasing of aircraft are zero-rated.

Rental of residential buildings and apartments that are used for housing; banking and financial services; insurance and reinsurance; games of chance; and educational services are exempted.

Other Consumption Taxes
Petroleum products, alcohol and alcoholic beverages, tobacco products, and motor vehicles are subject to excise duty at a flat or percentage rate.
Companies and individuals are liable for paying communal taxes for the usage of certain rights and services (i.e. garbage collection, etc.).
A tax on motor vehicles also applies (electric vehicles pay half of the tax due).

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Corporate Taxes

Company Tax
10% flat-rate
Tax Rate For Foreign Companies
North Macedonian resident companies are taxed on their worldwide income, while non-resident companies are taxed on the profit realised through their permanent establishment in the country.
A company is deemed to be resident for tax purposes if it is established under North Macedonian law or if its legal seat is in North Macedonia.
A unilateral foreign tax credit is available for foreign tax paid, up to the amount due for corporate income tax in North Macedonia.
Capital Gains Taxation
Capital gains are considered as corporate income and are taxed at the standard corporate rate.
Main Allowable Deductions and Tax Credits
Deductions include (under certain conditions) depreciation, interest expenses, entertainment expenses, employees’ related expenditures (when paid within the amount prescribed by law and collective agreement).
Donations are deductible if the annual amount borne by the taxpayer is below 5% of its overall revenue, whereas sponsorship expenses are deductible if below 3% of the overall revenue. Certain donations related to sports are deductible up to half of the assessed income tax.
The monthly allowances and expenses to the managing board members are also deductible, up to 50% of the average gross monthly salary paid out in the country in the previous year. The monthly allowance for practical trainings of students can be deducted up to MKD 8,000 per person; whereas the internship allowance deduction could be in the range between 42% to 100% of the minimum net monthly.
The collective insurance of the employees for work-related injuries is tax-deductible. Expenses for gifts, business dinners, recreation, and entertainment are taxable, up to 90% of the annual amount borne by the taxpayer.
Taxable income is decreased by the amount of profit reinvested in fixed assets.
Net operating losses can be carried forward against future profits for a maximum period of three years (five years for losses realised for 2020 and 2021). The carryback of losses is not allowed.
Other Corporate Taxes

Other taxes include:

  • real property tax (at municipal rates ranging from 0.1% to 0.2%)
  • transfer tax (at municipal rates between 2% and 4%)
  • social security contributions: 7.5% for health insurance; 0.5% for additional health insurance contributions; 18.8% for the pension and disability fund; and 1.2% for unemployment are paid by the employer on behalf of the employees. The minimum on which contributions are calculated is set at half of the average national monthly gross salary (MKD 21,755 for the year 2022); whereas the monthly maximum contribution is set at sixteen times the average national salary (MKD 696,144)
  • garbage collection fee (rates vary)
  • communal taxes (rates vary)
  • motor vehicles tax (rates vary).
Other Domestic Resources
Ministry of Finance
Consult Doing Business Website, to obtain a summary of the taxes and mandatory contributions.

Country Comparison For Corporate Taxation

  North Macedonia Eastern Europe & Central Asia United States Germany
Number of Payments of Taxes per Year 7.0 13.9 10.6 9.0
Time Taken For Administrative Formalities (Hours) 119.0 226.2 175.0 218.0
Total Share of Taxes (% of Profit) 13.0 36.5 36.6 48.8

Source: Doing Business - Latest available data.

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Individual Taxes

Tax Rate

Income tax 10%
Gambling and games income 15%
Capital gains derived from the sale of immovable property, securities, and equity participations in companies 10%
Allowable Deductions and Tax Credits
Compulsory health, pension, unemployment, and other related contributions borne by individuals are fully deductible.
For the year 2022, the law allows a personal exemption of MKD 105,456 on employees' personal incomes.
Special Expatriate Tax Regime
North Macedonian tax residents are taxed on their worldwide income, whereas non-residents are taxed on their North Macedonian-sourced income.
Individuals who have a permanent dwelling available in North Macedonia or who have been present in the country for more than 183 days within any 12-month period are deemed to be resident for tax purposes.
There is no special tax regime for expatriates in North Macedonia.

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Double Taxation Treaties

Countries With Whom a Double Taxation Treaty Have Been Signed
See the list of double taxation treaties
Withholding Taxes
Dividends: 0/10% (paid to non-resident companies); Interest: 0/10% (paid to non-resident companies); Royalties: 0/10% (paid to non-resident companies)

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Intellectual Property

National Organisations
SOIP, State Office of Industrial Property.
International Membership
Member of the WIPO (World Intellectual Property Organization)
Signatory to the Paris Convention For the Protection of Intellectual Property

National Regulation and International Agreements

Type of property and law Validity International Agreements Signed
Industrial Property Law
20 years. Patent Cooperation Treaty (PCT)
Industrial Property Law
10 years. Trademark Law Treaty
Protocol Relating to the Madrid Agreement Concerning the International Registration of Marks
Industrial Property Law
10 years.  
Copyright Laws
70 years Berne convention For the Protection of Literary and Artistic Works
Convention for the Protection of Producers of Phonograms Against Unauthorized Duplication of Their Phonograms
Rome ConventionFor the Protection of Performers, Producers of Phonograms and Broadcasting Organizations
WIPO Copyright Treaty
WIPO Performances and Phonograms Treaty
Industrial Models
Industrial Property Law
10 years.  

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Legal Framework

Independence of Justice
Equal Treatment of Nationals and Foreigners
Yes, but with awareness, since there is always some corruption.
The Language of Justice
Recourse to an Interpreter
It is easy to obtain the right to have an interpreter.
Sources of the Law and Legal Similarities
Justice is based on civil code.  The judiciary system is formed by courts headed by the Judicial Supreme Court, Constitutional Court and the Republic's Judicial Council.  Parliament appoints the judges.
Checking National Laws Online
World Law: FYROM

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National Standards Organisations
ISRM, National Standards Organization.
Integration in the International Standards Network
FYROM is member of ISO, affiliated to CENELEC, associated to IEC.
Classification of Standards
FYROM standards are the MKS.
Online Consultation of Standards
Go to site: ISO.
Certification Organisations
ISRM Standardization Institute

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Business Practices

General Information
Invest in North Macedonia
Ministry of Finance
Opening Hours and Days
Business stores and banks are open from 9 AM to 5 PM from Monday to Friday, and from 9 AM to 12 PM on Saturday.

Public Holidays

New Year's Day January 1st
Christmas Eve (Orthodox) January 6
Christmas Day (Orthodox) January 7
Easter Monday (Orthodox) Varies
Labor Day May 1st
St. Cyril and St. Methodius' Day May 25
Iliden Day (Republic Day) August 3
Independence Day September 8
End of Ramadan Varies
Uprising Day October 12
Revolution Day (National Day) October 23
Feast of the Sheep Varies
St. Clement of Ohrid December 8

Periods When Companies Usually Close

Vacation Holidays August (one or two weeks).

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Latest Update: May 2024