This article provides a clear overview of the individual income tax system in North Macedonia for 2025, covering the primary tax rates, assessment basis, and applicable surtaxes as set by the country’s current legislative framework.
Individual Income Tax Framework in North Macedonia (2025)
North Macedonia employs a straightforward approach to individual income taxation. As of 2025, the country adopts a flat tax system for individual income, meaning all incomes are taxed at a single, uniform rate. The tax is calculated based on total income, regardless of the source, with a couple of notable exceptions subject to elevated rates.
Flat Income Tax Rate
For 2025, all individuals are subject to a flat income tax rate of 10%. This rate applies uniformly to a wide range of income types and is a central component of North Macedonia’s tax system, contributing to its reputation for simplicity and predictability.
| Tax Type | Rate (%) | Assessment Basis | Currency (MKD) |
|---|---|---|---|
| Individual Income Tax | 10% | Income | MKD |
This flat rate ensures that all taxpayers, regardless of total yearly earnings, are taxed equivalently on declared income. There are currently no published tax brackets for individual income tax in North Macedonia.
Surtaxes: When Higher Rates Apply
While the general tax rate is highly competitive, certain types of income can attract surtaxes at substantially higher rates. These mainly apply under two specific circumstances:
| Income Type / Condition | Surtax Rate (%) | Currency (MKD) |
|---|---|---|
| Gains from games of chance | 15% | MKD |
| Income whose origin cannot be proved (difference between value of property and proved amount of available assets for its acquisition) | 70% | MKD |
Gains from games of chance are taxed at 15%, reflecting a policy choice to discourage speculative windfalls. More significantly, a remarkably high surtax of 70% is imposed on income whose origin cannot be proved, particularly where there is a discrepancy between declared property values and demonstrated acquisition assets. This severe penalty is designed as a deterrent against undeclared or illicit income sources.
Income Assessment and Special Provisions
Tax assessment is based on total reported income. No minimum or maximum holding periods are officially specified within current regulations, and there is no tiered system or progressive rate structure. The absence of tax brackets contributes to administrative simplicity and minimizes potential ambiguities for taxpayers.
If additional or more granular data on specific income categories or administrative deadlines becomes available, it is typically updated by the North Macedonian Ministry of Finance. For reference and current standards, consult the official portal at https://finance.gov.mk/.
Key Features of the North Macedonian Income Tax in 2025
- Flat Rate: Uniform 10% applied to most individual incomes with no tax bands or thresholds.
- No Brackets: Every taxpayer is subject to the same rate, enhancing ease of calculation and predictability.
- Explicit Surtaxes: Specific income sources such as gaming wins and unproven wealth are subject to 15% and 70% tax rates, respectively.
- Centralized Oversight: The Ministry of Finance manages all regulations and periodic updates.
Summary of Current Individual Income Tax Rates (2025)
| Type of Income | Tax/Surtax Rate (%) | Applicable Conditions |
|---|---|---|
| Ordinary Individual Income | 10% | Standard assessment on income |
| Gains from games of chance | 15% | Winnings from lotteries, betting, etc. |
| Income of unproven origin | 70% | Income/property with no clear acquisition source |
Pro Tips for Managing Income Tax in North Macedonia
- Maintain detailed records of all your income sources and relevant supporting documentation. This helps ensure you can demonstrate the origin of assets if required and avoid the punitive 70% surtax.
- Be vigilant with reporting any gambling or game winnings, as these are automatically subject to the higher 15% surtax.
- Keep abreast of changes announced by the Ministry of Finance, as tax policies and enforcement priorities can evolve periodically.
- If you have complex holdings or cross-border income, consider engaging a licensed tax advisor to ensure full compliance with North Macedonian requirements.
- Leverage the simplicity of the flat tax system for strategic income planning where possible, as uniform rates reduce administrative guesswork and calculation errors.
Official Resources
For official updates, legislation, and guidance, you can consult the North Macedonian Ministry of Finance:
https://finance.gov.mk/
In summary, North Macedonia’s income tax regime in 2025 remains notably streamlined, anchored by a flat 10% tax rate. With no brackets to calculate, compliance is straightforward for globally-minded professionals, though elevated rates apply for specific cases like gaming winnings and unexplained property value increases. It’s prudent to keep meticulous records and regularly review official guidelines to remain compliant with evolving tax policy.