Definition

Capital gain is the income realized by the taxpayer out of the securities sale, participation in the capital and real estate.
The capital gain presents the difference between the securities’ selling price, the participation in the capital and the real estate and the purchase price.

Capital gains realized from the sale of securities are not taxable from 1 January 2013 to 31 December 2018.

Taxpayer

Taxpayer is natural person who realizes profit from securities’ sale, participation in the capital and the real estate.

Tax base

Tax base for calculation of Personal Income Tax for income from capital gains is the difference between the selling price of the securities, participation in the capital and the real estate and the original (purchase) price.
The capital gains from the sale of real estate are included in the tax base in the full amount.
The capital gain from the sale of real estate where the taxpayer lived for at least one year before the sale, is included in the tax base in amount of 70% out of the difference.
Besides the gains, in the assessing the tax base for calculation of the tax on capital gains from selling of real estate also is considered the value of the investments and the expenses for investment maintenance.
The capital gain from securities’ sale and participation in the capital is included in the tax base in amount of 70% out of the difference.

Tax rate

• As of 01.01.2008 - the rate is 10%

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

1) A natural person (resident of the Republic of Macedonia) calculates the advance payment of Personal Income Tax for realized capital gains in the country and abroad, from selling of:

• Securities by the 10th of the month after the month in which the sale is made.
• Participation in capital by the 10th of the month after the month in which the sale is made.
• Real estate by the 10th of the month after the month in which the purchase agreement is verified.

The income recipient calculates the advance payment of Personal Income Tax for every realized income by applying the rates prescribed by the Law on Personal Income Tax or by applying the Agreements for Avoidance of Double Taxation (if the Republic of Macedonia has concluded an agreement with the country where the income was realized).
The revenue recipient for each realized income prepares an Electronic calculation for income and tax (e-PPD) and electronically submits it to the Public Revenue Office via the system e-pdd.ujp.gov.mk.
The calculation of the advance payment of the income tax is approved by the Public Revenue Office.

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 capital gains - sale of securities, participation in capital and real estate 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.