Taxpayers who can be taxed according to the lump-sum assessed net income

The taxpayers, which due to some circumstances:

1. are not able to keep a record of business books
2. keeping a record of business books makes difficult the performing of the activity
3. do not employ other persons
4. in which activity do not invest other persons and
5. realizes annual net income from performing an activity up to two annual average salaries

have a right to submit a Request for lump-sum tax assessment (form PDD-P), to the Public Revenue Office, and to pay the income tax, for the income from performing an activity, by lump-sum assessed net income.

Deadlines for submission of the Request for lump-sum payment of the Personal Income Tax

The taxpayer on annual basis submits a Request for lump sum taxation (form PDD-P) to the tax office of the PRO or through the e-Personal tax system e-pdd.ujp.gov.mk:

• no later than December 31 of the year preceding the year for which the tax is assessed; or
• within 15 days from the date of registration in the competent register; or
• before starting the activity.

The lump-sum taxation is not recognized for:

1. the taxpayer who performs trade, catering and commission activity (except the taxpayer who perform trade activity strictly through the points of sale of the organized green markets);
2. the taxpayer who employs other persons;
3. in which activity other persons invest and
4. whose net income in the year preceding the year for which the tax assessment is made, is higher than two annual average salaries.

If the Public Revenue Office assumes that conditions on which basis the taxpayer has been agreed the right to pay the tax by the lump-sum assessed net income have stopped, it will oblige the taxpayer to keep a record of business books.

Calculation of advance payment of Personal Income Tax

The Public Revenue Office calculates the advance payment of Personal Income Tax for income from independent activities that are taxed according to a lump-sum assessed income.
The Public Revenue Office calculates the advanced payment of the Personal Income Tax for independent activity income on the basis of a submitted application (form PDD-P) by the taxpayer and according to the criteria for assessing the lump sum income in accordance with the Law on Personal Income Tax.