Definition

• Income from independent activity – are the income realized out of the economic activity, providing professional and other intellectual services, the income from agriculture activity and other activities where their permanent goal is income realization.
• Income from economic activity – are the income from production, service, trade, catering, transport and other similar activity.
• Income from professional and other intellectual services – are the income from health, veterinary, attorneys, notary, consulting, audit, engineer, architectonic, journalistic, sport, cultural and other intellectual activity.
• Income from agriculture activity is the income from production, final production, processing and distribution of its own agriculture products, as well as stock farming and other economy–useful animals and distribution of their products.

Taxpayer

• Sole proprietor
• Natural persons who perform an agriculture activity (who are registered in an appropriate register and keep a record of business books)
• Natural persons who perform a craft activity and who keep a record of business books
• Natural persons who provide services or perform free occupations, who realize income from performing activity (attorneys, notaries, doctors, veterinaries, engineers, architects, accountants, auditors, journalists etc.) who are not considered as traders.

Tax base

Base for Personal Income Tax calculation for the income out of an independent activity is the net income (the difference between the total income and total expenditures of the taxpayer) assessed in the Annual Tax Balance (PDD-DB).

Tax rate

• As of 01.01.2008 – the rate is 10%

Self taxation (assessment and advance payment of the income tax)

Advance payment of the income tax is paid no later than 15th of the current month for the previous month, in the amount of 1/12 (one twelfth) of the calculated tax in the annual tax balance (PDD-DB).
The taxpayer who begins to perform an independent activity pays the monthly advance payments on Personal Income Tax for the first year on a basis of 50% of the average net salary per worker in the Republic of Macedonia published in January of the current year according to the data of the State Statistical Office.
The taxpayer of the income tax for the income derived from an independent activity is obliged to pay the difference between the paid advance payment and the calculated income tax within 15 days from the day of the expiration date for submission of the Annual Tax Balance (PDD-DB).
Note: Advance payment of the Personal Income Tax for January 2018 should be paid in the amount of the advance payment for December 2017.

Annual obligations for the performers of activity

The Statement of Income and Expenses (B) and the Annual Tax Balance (PDD-DB) are obligatory submitted to the PRO (and the Central Registry) by electronic means through etax.ujp.gov.mk, no later than 15th of March the following year.

The Public Revenue Office prepares a pre-populated Annual Tax Return for all citizens - individuals who have realized income (income from independent activity) 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.