Business Taxation — North Macedonia
North Macedonia offers one of Europe's most competitive tax systems with flat 10% corporate income tax. This attracts foreign investment and promotes business development.
Business Taxation
North Macedonia offers one of Europe's most competitive tax systems with flat 10% corporate income tax. This attracts foreign investment and promotes business development.
Corporate Income Tax 2026
Single rate of 10% applies to all taxable profit regardless of company size. One of Europe's lowest rates.
Capital gains for companies included in taxable income and taxed at standard 10%. Losses can offset gains.
Residents taxed on worldwide profit. Non-residents only on Macedonian-source income or permanent establishment income.
Withholding Taxes
Withholding tax on dividends paid to non-residents. May be reduced under double taxation treaties.
Withholding tax on interest paid to non-residents. Reduced rates under tax treaties.
Withholding tax on royalties and intellectual property payments to non-residents. Treaty benefits may apply.
Transfer Pricing
Transactions between related parties must comply with arm's length principle. Related parties are those with 25%+ ownership or majority shares.
Large taxpayers must submit documentation annually. Others must maintain documentation and provide upon request within 45 days.
Calculate Your Tax in North Macedonia
Free calculator: net income and effective tax rate in seconds
Open CalculatorRelated Topics
Social Security Contributions
North Macedonia's mandatory social insurance system is regulated by the Law on Mandatory Social Insurance Contributions. Employers are obligated to calculate, withhold from employees' gross salary, and pay contributions to respective funds.
02Personal Income Tax 2026
Since January 1, 2023, North Macedonia applies a flat tax system of 10% for most income types. This is one of the simplest and lowest tax rates in Europe, making the country attractive for entrepreneurs and workers.
04VAT and Other Taxes
North Macedonia's VAT system applies standard rate of 18% with preferential rates of 5% and 10% for certain goods and services. Inheritance, gift, and property taxes also apply.