Definition

As capital income is understood:

• dividends and other income realized by participation in the profit of the legal entities and natural persons
• interests by credits given to the natural persons and legal entities
• interests by bonds or other securities and
• interests on time saving and other deposits

Taxpayer

Taxpayer of the Personal Income Tax for capital income is a natural person who realizes income on the basis of:

• dividends and other income realized by participation in the profit of the legal entities and natural persons
• interests by credits given to natural persons and legal entities
• interests by bonds or other securities and
• interests on time saving and other deposits (*)

(*) Interest on time savings and other deposits are exempt from taxation to the date of the accession of the Republic of Macedonia to the European Union.

Tax base

• For dividends and other income realized by participation in the profit of the legal entities and natural persons, the tax base presents the gross dividend i.e. the income from the participation in the profit allocated to the taxpayer.
• For interests of loans given to the natural persons and legal entities, interests of bonds and other securities and (*) interests of time savings and other deposits, the base is the amount of the calculated interest.

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 capital income.
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 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 capital income (dividend, interest…) 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 capital income (dividends, interests ... ) 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.