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Macedonia

Taxes

Do you want to do business in Macedonia? This will tell you about tax laws for a LLC, which is the most common company structure in Macedonia.

Macedonia imposes corporate tax on resident entities worldwide income. The headline estimated tax rate for income remitted, from our research, and your results may vary, is 10%. Taxes are low in Macedonia as the headline corp. tax rate is 10% and taxable income may be decreased by the amount of profits reinvested in fixed assets. Macedonia ranks 34th when compared to corp. taxation rate internationally.

The value added tax (VAT) rate in Macedonia is 18.00%, that ranks Macedonia as 116th overall in terms of VAT globally. In terms of other taxation, an employer will withhold 27% of employees’ gross salary in social security contributions. The overall complexity of the tax system is medium. This is measured by average time to comply with a country's labor tax requirements is as it is 56hours. Contributing to this is the number of yearly labor tax payments, which is 4 in MK.

Thin capitalisation laws are in effect. This refers to any type of requirements on a business and the debt-to-asset ratios. Dividends distributed resident companies are tax exempt, provided that payer's profits were subject to taxation. Dividends received from a foreign company are subject to corporate income tax, but there may be available limited tax credits for foreign tax paid. Dividends are a distribution of a portion of a company's earnings, decided by the board, to a class of its shareholders. Dividends can be either shares of stock, cash payments, or other property. Capital Gains are considered ordinary income and subject to corporate income tax standard rate. A capital gains tax is levied on the profits that a corporation or natural person realizes when they sell sells a capital asset for a price that is higher than the purchase price.

The interest withholding tax rate is estimated at 10%. This means that the relevant tax authorities expects legal entities to pay tax on at least 10% of payments abroad on interests. The dividends withholding tax rate is 10%. Which means that the relevant tax authorities expects legal entities to withhold 10% of dividends paid to non-residents. Royalties are also subject to a withholding tax of 10%. This means that payments on royalties to non-residents may be taxed at 10%. Macedonia has signed 48 tax treaties that may reduce withholding tax rates.
There is no known tax on wealth in Macedonia. There are inheritance, transfer and real property taxes in Macedonia. We are not aware of any popular and well known research and development tax incentives in MK.

The above is not tax or legal advice for your company's facts and circumstances. Incorporations.io can refer you to a lawyer in Macedonia who will advise you. Want to work together? Click incorporate now if you are in a hurry, or press the free consultation button above.

Country details

Macedonia
MKD
Skopje
Europe
Macedonian (FYROM), Albanian, Turkish, rmm, Serbian
2,062,294

Tax treaties

Country Type Date Signed
Argentina TIEA 2013-04-26
Germany DTC  2006-07-13
Chinese Taipei DTC  1999-06-09
Montenegro DTC  1996-09-04
Ireland DTC  2008-04-14
Italy DTC  1996-12-20
Sweden DTC  1998-02-17
Hungary DTC  2001-04-13
Austria DTC  2007-09-10
Serbia DTC  1996-09-04
Kuwait DTC  2012-03-30
Russian Federation DTC  1997-10-21
China DTC  1997-06-09
Qatar DTC  2008-01-28
Turkey DTC  1995-06-16
Egypt DTC  1999-11-22
Morocco DTC  2010-05-11
Belgium DTC  1980-11-21
Spain DTC  2005-06-20
Czech Republic DTC  2001-06-21
Norway DTC  2011-04-19
Viet nam DTC  2014-10-15
Slovenia DTC  1998-05-15
Azerbaijan DTC  2013-04-22
Ukraine DTC  1998-03-02
Croatia DTC  1994-07-06
Finland DTC  2001-01-25
Romania DTC  2000-06-12
Luxembourg DTC  2012-05-16
Israel DTC  2012-08-23
Estonia DTC  2008-11-20
Netherlands DTC  1998-09-11
France DTC  1999-02-10
Belarus DTC  2005-05-19
Moldova, Republic of DTC  2006-02-21
Albania DTC  1998-01-15
Slovakia DTC  2009-10-05
Kazakhstan DTC  2012-07-02
Switzerland DTC  2000-04-14
United Kingdom DTC  2006-11-08
Iran DTC  2000-07-12
Bulgaria DTC  1999-02-22
Kosovo DTC  2011-04-06
Poland DTC  1996-11-28
Saudi Arabia DTC  2014-12-15
Lithuania DTC  2007-08-29
Denmark DTC  2000-03-20
Latvia DTC  2006-12-08

Tax treaties Map

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Disclaimer

Although we use our best efforts to keep the information of this site accurate and up-to-date, we make no representations or warranties with respect to the accuracy, applicability, fitness, or completeness of the contents of this website. We disclaim any warranties expressed or implied, merchantability, or fitness for any particular purpose. We shall in no event be held liable for any loss or other damages, including but not limited to special, incidental, consequential, or other damages. The contents of this website are just for illustrative purposes and are NOT to be considered as a legal opinion or tax advice and should not be relied upon as such. Far Horizon Capital Inc., and any associated company, is not engaged in the practice of law or tax. If you wish to receive a legal opinion or tax advice on the matter(s) in this website please contact our offices and we will refer you to an appropriate legal practitioner. Use of our websites FlagTheory.com, Incorporations.io, Residencies.io, Passports.io, is subject to our terms and conditions.

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