Corporate income taxation and tax system in North Macedonia
Understanding the intricacies of corporate income taxation in North Macedonia necessitates a solid grasp of the domestic tax framework, compliance obligations, and strategic avenues for tax optimization. Regardless of whether your business is classified as a resident or non-resident entity, having comprehensive knowledge of the tax duties and advantages in North Macedonia is essential for ensuring compliance and enhancing your tax situation. This guide outlines the corporate tax structure in North Macedonia, detailing tax rates, filing requirements, and available services to help you effectively manage your corporate income tax.
Corporate income tax system
In North Macedonia, the corporate income tax rate is set at a uniform 10%. Companies that are residents are taxed on their global income, whereas non-resident companies are taxed only on income sourced from North Macedonia. The tax base is calculated as the difference between income and expenses, with adjustments made for specific non-deductible costs. Branches face taxation in a manner comparable to subsidiaries.
Tax exempt
Dividends distributed among resident companies are not subject to corporate income tax. Furthermore, profits that are reinvested in fixed assets can lower taxable income. Companies located in free economic zones can take advantage of a profit tax exemption for a period of 10 years.
Tax return
Corporate tax returns should be submitted by the end of February for paper filings or by 15 March for electronic filings of the subsequent tax year. Advance payments must be made monthly based on the taxes from the prior year. Failure to comply may result in financial penalties, and business operations could be halted for as long as 30 days.
Tax compliance and reporting obligations
For businesses, successfully managing the intricacies of tax compliance is crucial to prevent penalties and ensure efficient operations. Organizations are required to follow various reporting obligations, such as adhering to filing deadlines, keeping precise and thorough documentation, and ensuring all tax returns are filed according to both local and international regulations. Proper reporting is not only a legal obligation but also vital for preserving the financial integrity of the business.
We offer services aimed at assisting your business in effectively handling these responsibilities, making certain that all submissions are precise, prompt, and completely adhere to the applicable tax authorities’ regulations.
Corporate income tax for non-residents
Non-resident companies face a 10% corporate income tax on profits obtained from business operations in North Macedonia, unless a lower rate is provided by relevant tax treaties. Permanent establishments of non-resident entities are taxed in the same manner as resident companies.
Managing corporate income tax risks
Proper management of corporate tax risks is crucial for maintaining your business’s financial stability and compliance. Tax risks may arise from legislative changes, international transactions, and intricate tax structures. If not adequately addressed, these risks can result in unforeseen liabilities and penalties.
To address these risks, companies need to consistently evaluate their tax practices, keep informed about changes in legislation, and adhere to all relevant regulations. Establishing a strong tax risk management strategy that involves careful documentation and proactive modifications to the business structure can aid in avoiding expensive problems.
We assist your business in recognizing and handling corporate tax risks, helping you stay compliant and protected in an ever-changing tax landscape.
Corporate income tax services
Our team of specialists provides an extensive array of corporate income tax services specifically designed to address the distinct requirements of businesses engaged in or connected to North Macedonia. We support a full spectrum of needs, including tax compliance, strategic planning, navigating international tax treaties, and reducing tax liabilities. Our offerings encompass the preparation and submission of corporate income tax returns, representation in interactions with tax authorities, and continuous advisory assistance to ensure your business adheres to North Macedonia’s tax laws. Additionally, we offer advice on utilizing tax incentives, overseeing cross-border tax responsibilities, and refining your overall tax strategy in alignment with your business objectives.
Contact us
If you want to comply with North Macedonia’s corporate income tax regulations and improve your tax strategy, we can assist you. Get in touch with us for more information about our offerings or to arrange a consultation with one of our tax specialists. Allow us to help you manage the intricacies of corporate taxation in North Macedonia, so you can concentrate on what is most important—expanding your business.
Disclaimer
Tax laws and regulations are regularly updated and can differ depending on personal circumstances. The information presented here serves as general guidance and may not represent the latest changes. It is strongly advisable to seek advice from a qualified tax professional for detailed and current insights tailored to your specific situation.