Basic categories of the Personal Income Tax Law

What is a personal income tax II

In order to answer some questions that are not familiar enough but still actual, the Civic World offers you an opportunity to meet the basic categories treated by the Personal Income Tax Law: tax rate, tax exemptions, certain kinds of revenues etc.

Tax rate

The rate that is used for calculating personal income tax is changeable (progressively) and depends on the level (base for calculation) of payment:

-         up to 25,500.00 MKD (net) or 31,500.00 (gross) MKD the rate of 15% is used
-         for all payments above 25,500.00 MKD (net) or 31,500.00 (gross) MKD the rate of 18% is used.

This means that for all revenues you will pay 15% personal income up to 25,500 (net) and for each amount above it, the taxation rate is 18%.

Tax exemptions

One of the specifics of this law and simultaneously a regulation that provokes confusion to the employees in international organizations is the regulation on tax exemptions according to which the following are tax exempt: 

1.    the heads of foreign diplomatic missions and members of their families, if those family members are not citizens or residents of the Republic of Macedonia
2.    the heads of foreign consular missions and members of their families, if those family members are not citizens or residents of the Republic of Macedonia
3.    officials and experts of the UN and UN agencies
4.    individuals employed in foreign diplomatic missions, foreign consular missions and international organizations, if they are not citizens or residents of the Republic of Macedonia
5.    honorary consular officials of foreign countries, but only for allowances they receive from their countries
6.    citizens of the Republic of Macedonia for incomes they realize in international organizations.

Certain kinds of payments (revenue)

While making calculations and payments of the personal income tax (stated in the introductory part), the Law gives several various calculations and payments depending on the kind of revenue, especially in the part of the category other revenues and it divides them to:

Incomes from working contracts and other personal incomes
Incomes from rent agreement 
Incomes from copyrights and industrial property rights for art and photography
Incomes from copyrights and industrial property rights for sculptural works, ceramics, etc.
Incomes from copyrights and industrial property rights for translations, classical music etc.
Incomes from copyrights and industrial property rights for show business programs
Other incomes (all other agreements that have not been mentioned above).

The difference between the above-mentioned agreements is in the different level of received costs that reduce the tax base when calculating personal tax.

As a result of the complex way of calculating certain incomes, on one hand, and the limited space, on the other hand, please let us do it in some other occasion.