Macedonia

Facts and figures
Pre arrival procedures
Employment visas
Tax year
Tax returns and compliance
Income tax rates
Sample income tax calculation

Pre arrival procedures
Expatriates who require a work visa must apply for this before taking up employment in Macedonia. It is therefore important that the expatriate’s employment contract and benefit package is structured in a tax-efficient manner before the contract is submitted to the Macedonian Immigration Department.

Employment visas
The Government of the Republic of Macedonia determines the annual quote of employment of expatriates which annually must not exceed 5% of the employed population in Republic of Macedonia. The quote does not include EU expatriates that have equality with the citizens of Republic of Macedonia, based on reciprocity Bilateral or Multilateral Agreement, neither for expatriates which are not required for WP in accordance with Law. There are three types of WP: 1. Personal Working Permit; 2. Employment Working Permit; and 3. Permit for work. The difference between these three types of WP is the period for which they have been issued. The Personal WP is being issued from one up to three years or for un-determined period. The Employment WP is generally being issued for a period up to one year, and the Permit for work is issued for different time limits depending from the purpose for which the Permit has been issued for. The family, spouse and children visas of the expatriates that already posses WP, are necessary, but they have priority in their issuance.

Tax returns and compliance
The individuals who are Macedonian residents and those expatriates that have become Macedonian residents by residing in Republic of Macedonia 183 or more days, for tax purposes must file their annual tax return latest before March 15 of the year following the calendar year.
Payment of the Macedonian Tax
The employer (the payer of the income) is obliged to withhold and pay in the name and behalf of the employee the amount of the Personal income tax, during each separate payment.

Tax year
The Macedonian tax year is the calendar year and runs from 1st January to 31st December.

Sample income tax calculation

Information about Macedonia:

• introduction
• facts and figures
• basis of taxation
• what taxes?
• tax planning opportunities