The withheld tax in accordance with the provisions of the Article 21 of the Law on Corporate Income Tax (“Official Gazzete of Republic of Macedonia”, No.112/14...232/19 and  “Official Gazzete of Republic of North Macedonia”, No. 275/19 and 290/20) is calculated on the gross income at the rate of 10%.

If the foreign legal entity (the income recipient), is a resident of the country by which the Republic of North Macedonia has concluded an Double Taxation Avoidance Treaty in relation to the income taxes and capital, then the tax rate for that income assessed in the Law should not exceed the tax rate which is applied for the income determined in the Agreement.
It means that if with the provisions of the Agreements, the tax rate by which it should be calculated and withhold the tax on specific kinds of incomes is not fixed determined, instead it is given a formulation...the inlaid tax cannot exceed more than __ percentage..., then while calculating and withholding tax of this kind of income it should be applied the lower rate between the tax rate determined in the Law on Corporate Income Tax and the rate determined in the Agreement for avoiding double taxation.

(*) Agreement concluded by the Republic of Macedonia and the specific country that is not yet in force.
(**) Agreement concluded by the Federal Republic of Yugoslavia and the Republic of Macedonia that is applied in regards of Republic of Serbia and Republic of Montenegro.
(***) Tax rate of 10% applies only in case of use or right to use of cinematographic films and films or tapes for radio and television transmission, while the tax rate of 5% applies in all other cases.
(****) As other incomes is understood the parts of the income of a resident of the contracting country, wherever they are made, which are not covered by specific provisions of the specific agreement.

To download the Agreement for avoiding double taxation, click the name of the Country in the table below.