North Macedonian legal and accounting and tax considerations in 2023
- North Macedonia has a corporate income tax rate of 10%. Resident companies are liable to pay tax for their global income while non-resident companies are only taxed on income generated within North Macedonia;
- The standard VAT rate in Macedonia is 18%. Goods such as food, water, computer software, newspapers and books are eligible for a reduced VAT rate of 5%;
- Both residents and non-residents are obliged to pay inheritance tax of 2%-5% on property inherited in North Macedonia. This tax does not apply to immediate relatives;
- North Macedonia has 37 double tax treaties with countries such as Albania, Germany, France, Netherlands, Qatar, United Kingdom, etc.;
- It is important our Clients’ are aware of their personal and corporate tax obligations in their country of residence and domicile; and they will fulfill those obligations annually. Let us know if you need Healy Consultants’ help to clarify your annual reporting obligations.
Legal and compliance
- Foreign attorneys are not allowed to practice in North Macedonia. Therefore, foreign companies operating in North Macedonia are advised to consult local attorneys on all legal aspects of their businesses;
- Credit transactions between North Macedonian residents and non-residents are allowed. However, the loans must be registered with the Central Bank;
- Name of a North Macedonian company can include foreign words, but must be written in Cyrillic script to submit to the Trade Registry upon company incorporation;
- The process of deregistering a company is dictated by the Government. This process will take a minimum of 6 months. Healy Consultants fee to project manage company de-registration is US$1450. During this 6 months period it is mandatory to maintain a resident company secretary and a legal registered office;
- In North Macedonia, only employees are subject to pay social security contributions, which are at 18% for pension, 7.3% for health, 1.2% for unemployment fund, and 0.5% for additional health contribution.