Paying Taxes in Macedonia

1. What is the corporate tax in Macedonia?

A company registered in Macedonia is subject to a flat corporate tax rate of 10%, one of the lowest rates in Europe.

2. What is the VAT in Macedonia?

In Macedonia, the VAT rate is 18%.

3. How can the VAT be refunded in Macedonia?

Usually, the procedure for a VAT refund takes less than 30 days. You need to apply for a VAT refund at the Macedonian Revenue and Tax administration and provide all the documents required, particularly the invoices.

4. What is the dividend tax in Macedonia?

Dividend tax in Macedonia is 10%.

5. Are there any incentives for foreign investors in Macedonia?

The entire tax system in Macedonia is quite a great incentive for foreign investors who want to set up a company here. The can benefit from a low corporate tax rate of 10% and even a 0% corporate tax on retained earnings. Besides, the system has been very careful as far as double taxation is regarded, so Macedonia signed several agreements in order to avoid these situations. Moreover, foreign investors who intend to establish a business in the technological–industrial development zones need to know that they will benefit from a corporate tax exemption for 10 years. It is also important to be reminded that Macedonia works with a flat tax system, which is also very attractive for foreign investments.

6. Why do I need a local accountant for my business in Macedonia?

As the accounting law states, annual accounts need to be prepared in accordance with local accounting rules. A local specialist that has some experience with the system will deal with the paperwork faster and in a more efficient way, so that your Macedonian business is kept on good hands as far as the legal aspects are concerned.