Definition

Income from copyrights and rights from industrial property is the allowance which the taxpayer realizes from copyrights and rights from industrial property.

Taxpayer

• Natural person – who realize allowance from copyrights and rights from industrial property
• Natural person – inheritor or carrier of copyrights and rights from industrial property

Tax base

• A base for Personal Income Tax calculation of the income from copyrights and rights from industrial property is the net income which is got when out of the realized income, the expenditures necessary for its realization will be deducted.
• Tax base for Personal Income Tax calculation of the income from copyrights and rights from industrial property that the taxpayer realized from his work, that lasted longer than one year, presents the proportional part of the net income.
• In the net income assessment, the income is divided on the taxpayer’s request, on so many equal parts as the number of years he was creating the good, but maximum for five years.

Tax rate

• As of 01.01.2008 – the rate is 10%

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

1) The payer of the income who keeps business records calculates the advance payment of Personal Income Tax for income from copyrights and rights from industrial property.
The payer of the income calculates the advance payment of the Personal Income Tax that is paid by deduction 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 and the payment of the net income 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) A natural person (resident of the Republic of Macedonia) calculates the advance payment of Personal Income Tax for income from copyrights and rights from industrial property from abroad.
The income 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, by the 10th of the month for the realized income in the previous month.
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 copyrights and industrial property rights 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.