Belgian-Macedonian Business Club

UPJ, the Macedonian Public Revenue office, reminds on obligations to report foreign income to the Macedonian tax authorities and pay income tax under certain circumstances.

This obligation exists since several years. “Any possible omissions in the past are a matter of previous management structures” claims the UPJ. Apparently UPJ sent 10 000 requests to declare foreign income.

If you are spending more than half of a year as regular resident in North Macedonia, you need to report your world income. Depending on double tax treaties, income taxed in other countries will not be taxed in North Macedonia.

A 10 % flat tax rate will apply on an individual’s income from work, self-employment income, income from royalties and industrial property rights, income from sale of own agricultural products, rental income, income from capital, capital gains, and insurance income, as well as other taxable income not categorized separately in the legislation. The tax rate on the gains realized from games of chance will remain 15%. The taxation of capital gains from sale of securities and shares released from investment is applicable from 1 January 2023 onward. The taxation of interest on termed deposits is postponed until accession of North Macedonia to the European Union (EU). The resident taxpayer is granted a credit for the tax paid abroad, up to the Macedonian tax payable on the same income.

These measures are specifically claimed as retroactive and unfair by Macedonian citizens who worked in Iraq and Afghanistan in the past.

PWC Tax Summary North Macedonia

Ekonomija i Biznis: The obligation to report and tax income earned from abroad does not represent a new legal measure

Faktor: UJP has so far issued 10 000 invitations to pay tax on income from abroad, Director Petrova says this is not retroactive