Definition

Incomes from property and property rights are the incomes realized by the taxpayer from lease or sub-lease of land, housing or business premises, garages, premises for rest and recreation, equipment, means of transport and other types of property.
In the property and property rights incomes also are included the values of all expenses and services for which the leaseholder has obliged i.e. sub-leaseholder to perform at the expense of the owner (adaptation, renovation, servicing, corrections, appropriate equipment building, installations and etc.).

Taxpayer

Natural person who realizes incomes from lease or sub-lease of land, housing or business premises, garages, premises for rest and recreation, equipment, means of transport and other types of property.

Tax base

The basis for calculating of the tax is the net income obtained when the annual amount of realized income in the year for which the tax is assessed, will be reduced for the recognized expenses. The amounts of recognized expenses that can reduce the realized income are:

• 25% of the amount of income - if the revenue is realized by renting on lease or sublease of unequipped residential and business premises
• 30% of the amount of income - if the revenue is realized by renting in lease or sublease of equipped residential and business premises
• The amount of real expenses - if they are proven

Tax rate

• As of 01.01.2008 - the rate is 10%

Electronic calculation for advance payment of Personal Income Tax (e-PPD)

1. If the leaseholder is a legal entity (payer of income who keeps business records) the legal entity is obliged to calculate the advance payment of Personal Income Tax for income from property and property rights.

The payer of the income, the calculation of the advance payment of the Personal Income Tax that is paid after deduction performs before the payment of the income for each natural person to whom the income is paid, applying the rates prescribed by the Law on Personal Income Tax.
The payer of the income prepares an Electronic calculation for income and tax (e-PPD) with data for each natural person to whom an income is paid, and electronically submits it to the Public Revenue Office through the system e-pdd.ujp.gov.mk
The calculation is approved by the Public Revenue Office before the payment of the tax at the payment operations carrier is made.
The payer is obliged to issue to the taxpayer a copy of the calculation for the tax advance payment for each payment.

2. If the leaseholder is another natural person, the recipient of the income (natural person) for the income from property and property rights realized from issuing property in lease or sublease is obliged to calculate the advance payment of the personal income tax, as follows:

• By the 10th of the month following the month in which the contract was concluded.
• By the 10th of the month following the month of leasing, in cases where the duration of the lease is shorter than 31 days in one month.

The income recipient (natural person) makes the calculation of the advance payment for the Personal income tax for each realized income, applying the rates prescribed in the Law on Personal Income Tax.
The income recipient for each generated income prepares an Electronic calculation for income and tax (e-PPD), which is submitted electronically to the Public Revenue Office through the system e-pdd.ujp.gov.mk
The calculation of the advance payment of the income tax is approved by the Public Revenue Office.

A natural person (resident of the Republic of Macedonia) for the income realized from abroad from the lease of a property abroad also has an obligation to submit an Electronic calculation for income and tax (e-PPD) to the Public Revenue Office through system e-pdd.ujp.gov.mk

Annual obligation of the natural person

The Public Revenue Office prepares a pre-populated Annual Tax Return for all citizens - individuals who have realized income from property and property rights -rent during 2018. The pre-populated Annual Tax Return (PIT-GDP) is submitted by the Public Revenue Office to the citizens no later than 30 April 2019 through the system e-pdd.ujp.gov.mk
Each natural person is obliged to confirm the accuracy of the data from the pre-populated Annual Tax Return or to correct the return no later than May 31, 2019
If the citizen does not confirm or correct the pre-populated Annual Tax Return no later than 31 May 2019, the pre-populated PIT-GDP issued by the PRO will be considered as confirmed.