Withholding Tax — Payments to non-residents
Withholding tax is a tax withheld when making payments to non-resident companies/individuals. The payer (Macedonian company) withholds the tax and remits it to UJP on behalf of the recipient.
Definition
Withholding tax is a tax withheld when making payments to non-resident companies/individuals. The payer (Macedonian company) withholds the tax and remits it to UJP on behalf of the recipient.
Details
Rate: 10% on: dividends, interest, royalties, technical services and management fees paid to non-residents. Can be reduced by double taxation treaties (MK has ~40 treaties). Reported via form DD-01 by the 15th of the following month.
Example
You pay 10,000 EUR to a German software company for a license. Withhold 10% = 1,000 EUR (≈61,500 MKD) and remit to UJP. Transfer 9,000 EUR to the company.