Macedonia has one of the most appealing tax structures in Europe, a great benefit from a business point of view. Foreign investors who want to know more about the taxation system in Macedonia are invited to talk to our team of company formation agents in Macedonia who can also offer support and assistance for registration. Our team is experienced in company formation in Macedonia, so all you have to do is to give us a call or an email with your inquiries in this direction.
The corporate tax in Macedonia
The corporate income tax is one of the most important taxes levied in Macedonia. This is levied at a flat rate of 10%, one of the lowest in Europe. This kind of tax is imposed for resident companies in Macedonia, levied on the worldwide income. In the case of foreign companies established in Macedonia, the corporate income tax is imposed only on the incomes generated in the country. The same standard corporate income tax is applicable to capital gains in Macedonia.
What is the VAT in Macedonia?
The general VAT in Macedonia is set at an 18% rate for most of the goods and services available for sale purposes in this country. As for the 5% VAT rate in Macedonia, this is imposed on all food products, agricultural materials, water supply, magazines, newspapers, publications, books, medical equipment, public transportation, and accommodation services, to name a few. Just like in the case of the corporate income tax, the VAT is also one of the lowest among the European countries. In terms of VAT registration, foreign investors should note that starting with January 2020, the registration for VAT in Macedonia must be made by companies with a total turnover of MKD 2 million per year. Please feel free to address one of our company formation representatives in Macedonia for additional details about the tax regime and compliance in this country. Here is an infographic with extra details:
Social contributions in Macedonia – What you need to know
The social contributions are paid by employers hiring staff in their companies. These are imposed on gross salaries, such as:
- • 7.5% for health insurance;
- • 0.5% for additional health insurance;
- • 18.8% for pension and disability funds;
- • 1.2% for employment insurance.
We also mention that the personal income tax in Macedonia is set at a 10% rate. International investors wanting to open a company in Macedonia and interested in hiring staff should discuss to one of our company formation specialists in Macedonia and find out all the details you need about the social contributions. Plus, we work closely with the Public Revenue Office in Macedonia, the institution that oversees the social contributions paid by employers.
The withholding tax in Macedonia
It is good to note that the withholding tax in Macedonia is imposed on interests, dividends, and royalties, at a flat rate of 10%. Plus, the double taxation treaties signed by Macedonia with countries worldwide comprise provisions referring to the protection of incomes in terms of taxation, including the withholding tax. Please talk to our consultants for extra details about the Macedonian tax system.
Other taxes in Macedonia
The real estate property tax in Macedonia ranges from 0.1% to 0.2% and it is imposed on properties owned in Macedonia. In addition, one should consider the transfer tax ranging between 2% and 4% rate, alongside the communal taxes and other municipal fees. If you would like to know more about the Macedonian taxation system, please address to our team of company registration agents in Macedonia.
Investing in Macedonia
Macedonia has a prolific economy, plus a stable and appealing business environment that offers equal chances for both domestic and foreign entrepreneurs. The registration process of companies in Macedonia has been simplified in recent years, so there are no complicated bureaucracies in this field. Besides that, the Macedonian authorities sustain the foreign investment field with a series of encouragements, such as tax exemptions for certain activities. For instance, there is no corporate income tax for at least 10 years for particular investments made by foreigners in Macedonia. Here are some facts and figures about Macedonia’s economy:
- • about USD 6,4 billion was the total FDI stock in Macedonia in 2019;
- • the manufacturing sector, alongside the financial and insurance field, attract most of the FDIs in Macedonia;
- • the 2020 Doing Business report issued by the World Bank ranks Macedonia 17th among 190 worldwide economies;
- • around USD 237 million was the total value of the greenfield investments in 2019 in Macedonia.
If you are interested in more aspects referring to the Macedonian taxation system, please feel free to contact our team of company formation agents in Macedonia.