North Macedonia taxes residents on worldwide income and non-residents on North Macedonia-source income only. North Macedonia operates a self-assessment system for corporate tax, with the Public Revenue Office conducting post-filing review.
The North Macedonian tax year is the calendar year.
North Macedonia's headline corporate income tax (CIT) rate is 10%.
The headline personal income tax (PIT) rate is 10%.
The standard VAT/GST (or equivalent consumption tax) rate is 18%.
Regardless of citizenship, an individual is a North Macedonian tax resident if they have a permanent or temporary residence there; temporary residence is established by continuous or intermittent presence of 183 days or more within any 12-month period. Where a tax treaty applies, its residency provisions govern. A company is resident if established or headquartered in North Macedonia. Residents are taxed on worldwide income; non-residents only on North Macedonia-source income.
A non-North-Macedonian entity has a North Macedonia permanent establishment through a fixed place of business or a dependent agent habitually concluding contracts in North Macedonia on the entity's behalf, following the OECD Model Treaty definition as applied under North Macedonian domestic law and any applicable tax treaty.
North Macedonia has no CFC rules.
A proportional part of interest on a loan from a non-resident shareholder holding at least 20% of the company's capital is taxable (non-deductible) to the extent the loan exceeds three times that shareholder's equity share; the rule also extends to bank loans tied to a shareholder deposit at that bank. Newly established companies are exempt from thin capitalization rules for their first three years of operation.
North Macedonia does not use an elective check-the-box classification system; entity classification generally follows the entity's actual legal characteristics. As a non-EU member (EU accession candidate), North Macedonia is not bound by ATAD2 and does not have a comprehensive anti-hybrid regime.
No foreign bank account or foreign financial asset reporting regime exists requiring residents to separately disclose foreign accounts; foreign income is reported through the standard annual tax return.
North Macedonia does not provide a broad participation exemption for foreign dividends in the European sense; relief from double taxation is available primarily through North Macedonia's foreign tax credit system.
North Macedonia has a real foreign tax credit regime available to both individuals and companies for foreign tax paid on foreign-source income also taxed in North Macedonia, capped at the domestic tax otherwise due on that income.
North Macedonia maintains double tax treaties with 48 countries.