North Macedonia's tax regime is simple and low. The corporate profit tax is a flat 10%. The personal income tax is also a flat 10%. VAT has a standard rate of 18%, with reduced rates of 10% and 5%. Salaries are subject to social contributions. Withholding tax may apply to certain payments to non-residents (such as dividends, interest, and royalties), subject to applicable double-tax treaties.
Tax rates and thresholds
| Tax | Rate / threshold |
|---|---|
| Corporate profit tax | 10% (flat) |
| Personal income tax | 10% (flat) |
| VAT — standard | 18% |
| VAT — reduced | 10% (catering, some food) / 5% (basic food, water, pharma, books) |
| VAT registration threshold | MKD 2,000,000 turnover (mandatory) |
When VAT registration is required
VAT registration becomes mandatory once your taxable turnover exceeds MKD 2,000,000 in a calendar year (or is expected to). You may also register voluntarily — useful if you trade with VAT-registered partners and want to reclaim input VAT — by applying to the Public Revenue Office (UJP), generally within 15 days of registration. The annual registration/deregistration window closes on 15 January.
