Tax is one of the main reasons founders choose North Macedonia for company formation. Here are the headline rates your company will deal with, plus when VAT registration kicks in.
Headline rates
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 | 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 applies
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. Note the annual registration/deregistration window closes on 15 January.