Page 43 - CEE Tax Guide 2025

taxation has been put on hold for 36 months
VAT options
in North Macedonia Applicable / limits as of January 1, 2020. The PIT Law amendments
of January 1, 2019, introduced progressive tax
Distance selling No
rates for work-related income (such as salaries,
Call-off stock No pensions, etc.), income from copyrights and related
VAT group registration rights, income from independent activities, and
income from the sale of agricultural products
Cash accounting – yearly No
amount in EUR (approx.) (Labor Income). With the amendments to the PIT
Law, Labor Income will be subject to tax at a flat
Import VAT deferment No
rate of 10% until January 2023 regardless of the tax
Local reverse charge Construction including base amount. Employers are obliged to calculate,
maintenance, electrical withhold from employees’ gross salary, and pay into
installation, plumbing, etc.
the accounts of respective funds the compulsory
Option for taxation social contributions and personal income tax (PIT).

letting of real estate No Altogether, social security contributions payable
by employees amount to 28% of their gross salary:
supply of used real estate No
the pension contribution is 18.80%; health care
VAT registration MKD 2 million per year insurance is 7.50%; unemployment insurance
threshold (EUR 32,415/year)
is 1.20%; and health care at work insurance is 0.5%.
The examples below show the cost of the employer
transportation. Exports are zero-rated. VAT-exempt
services are mainly banking services, insurance, and the employee in the case of the minimum wage
certain services provided by medical doctors and level and average wage. The personal allowance
dentists, certain types of education and training, is MKD 105,456 on an annual basis, while the
as well as other activities that are tax-exempt with monthly personal allowance amounts to MKD 9,540.
regard to their public interest or special nature. The minimum base for social security contributions
A reduced rate of 10% was recently introduced for equals 50% of the average monthly salary for the
hotel and restaurant services. current month. However, for self-employed people,
Other indirect taxes in North Macedonia include fuel the minimum base is the average salary.
tax and excise duties.
The highest base for the payment of mandatory
Personal income tax / social security contributions on a monthly
basis is 18 average salaries paid in Macedonia
Social security system for employees and members of managing and
supervisory bodies and 12 average salaries for the
With the latest amendments to the Law on Personal
Income Tax (PIT Law), progressive personal income self-employed.

Wage related taxes in North Macedonia Minimum wage Average wage in private sector
Exchange rate MKD/EUR 61.69 in EUR in MKD in EUR in MKD
482 29,739 934 57,609

Total wage cost 482 100.00% 934 100.00%
Gross salary 482 100.00% 934 100.00%
Pension and disability contribution 91 19.00% 175 19.00%
Health contribution 36 7.00% 70 7.00%
Unemployment contribution 6 1.00% 11 1.00%
Additional health contribution 2 0.00% 5 1.00%
Personal income tax 18 4.00% 51 5.00%
Net salary 329 68.00% 622 67.00%

Nenad Randjelovic
Managing Partner
Phone: +389 (0) 70 291 095
E-mail: nenad.randjelovic@forvismazars.com

Central and Eastern European tax guide 2025 Forvis Mazars 43