Tax
Low flat personal and corporate rates with VAT
North Macedonia maintains a low flat personal income tax and a low corporate income tax, historically a core element of its investment promotion. VAT applies at a standard and reduced rate.
Key rules
- Personal income is taxed at a low flat rate, with separate treatment of capital income.
- Corporate income tax is charged at a low flat rate on adjusted profits.
- Municipal property tax is levied annually within statutory ranges.
Governing law
- Personal Income Tax Act
- Profit Tax Act
In practice
An attempt to introduce progressive personal rates was suspended and then repealed, so the flat rate remains in force.