Taxpayer

- A legal entity resident in the country that generates profit from activities within the country and abroad.
- A permanent establishment of a foreign entity for the profit generated from activities on the territory of our country.

Tax Rate

- 10% on a base defined as the difference between the total revenue and the total expenses of the taxpayer, in an amount determined in accordance with accounting regulations and accounting standards, increased by non-deductible expenses and underreported income for tax purposes.

Legislation

Law on Profit Tax – unofficial consolidated text

Taxpayer

- A legal entity resident in the country that generates profit from activities within the country and abroad.
- A permanent establishment of a foreign entity for the profit generated from activities on the territory of our country.

Tax Rate

- 10% on income from employment, income from self-employment, income from copyright and related rights, income from the sale of own agricultural products, income from industrial property rights, income from lease and sublease, income from capital, capital gains, income from insurance, and other income.
- 15% on income from winnings from games of chance.

Legislation

Law on Personal Income Tax – unofficial consolidated text

Taxpayer

- A person who permanently or occasionally independently engages in economic activity, regardless of the goals and results of this activity.
- The obligation for mandatory registration for VAT purposes applies only to those taxpayers who have generated a total taxable turnover of more than 2,000,000 denars in the previous calendar year.

Tax Rate

The general tax rate of 18% applies to the entire turnover and import, and there are also preferential tax rates of 10% and 5%.

A preferential tax rate of 5% applies to:

- Basic products for human consumption.
- Drinking water from public supply systems and the discharge of urban wastewater and water for irrigation of agricultural land.
- Publications such as books and electronic/digital textbooks, brochures and similar printed materials, newspapers, and other periodicals, children's picture books, drawing and coloring books for children, and cartographic products of any kind, except publications mainly for advertising purposes, as well as publications with pornographic content.
- Seeds and planting material for the production of agricultural plants.
- Fertilizers.
- Plant protection products.
- Plastic foils for use in agriculture.
- Agricultural machinery.
- Medicines, including veterinary medicines.
- Menstrual hygiene products.
- Data processing machines, software for data processing machines, and their units (computers).
- Thermal solar systems and components.
- Medical equipment, aids, and other devices intended for alleviating or treating disability exclusively for personal use by disabled persons.
- Crude oil for the production of food for human consumption.
- The first sale of residential buildings and apartments used for residential purposes that is carried out within five years after construction.
- Animal feed, feed additives, and live livestock.
- Baby products, including cribs, strollers, carriers, bouncers, car seats, tubs, highchairs, pacifiers, bottles, and diapers.
- School supplies such as school bags, notebooks, pencils, pens, blocks, workbooks, crayons, rulers, compasses, modeling clay, sharpeners, erasers, and correctors.
- Pellets, pellet stoves, and pellet boilers.
- Thermal energy for heating.

A preferential rate of 5% also applies to the turnover of the following services:

- Transport of persons and their accompanying luggage.
- Software for data processing machines and their units (computers).
- Accommodation services (overnight stay) or accommodation with breakfast, half board, or full board, in all types of commercial hospitality facilities.
- Public cleaning and waste disposal services.
- Craft services (repair of shoes, bicycles, and leather products, clothing, household linens, and hairdressing services).

A preferential tax rate of 10% applies to:

- Turnover and import of electricity for households.
- Other products for human consumption (which are not subject to the preferential rate of 5%).

Legislation

Law on Value Added Tax – unofficial consolidated text

Property Tax

Taxpayer

- Legal and natural persons who are property owners.
- Legal and natural persons who use the property when the owner is unknown, unavailable, or when using real estate owned by the state or municipality.
- It can also be the usufructuary of the property in accordance with the law.
- If the property is owned by multiple persons, each is liable for the property tax proportionally to their ownership share.

Tax Rate

- From 0.10% to 0.20% of the property's market value, determined according to the Methodology for assessing the market value of real estate.

Inheritance and Gift Tax

Taxpayer

- A natural or legal person resident in the country who inherits property or receives a property as a gift, both domestically and abroad.
- A foreign natural or legal non-resident person for the real and movable property they inherit or receive as a gift within the country's territory.

Inheritance and gift tax is paid on real estate, cash, financial claims, securities, and other movable property if the market value of the inheritance or gift agreement exceeds the amount of the annual average salary.

Tax Rate

2% to 3% for taxpayers of the second degree of kinship.
4% to 5% for taxpayers of the third degree of kinship or those not related to the decedent.

Real Estate Transfer Tax

Taxpayer

- Legal and natural persons who sell the real estate.
- The taxpayer can be both legal and natural person (buyer of the real estate) if the sales contract specifies that the buyer will pay the tax.
- In property exchanges, the taxpayer is the participant exchanging property of greater value.
- If an ideal share of the property's ownership is transferred, each owner is a taxpayer separately.

Tax Rate

2% to 4%

Legislation

Law on Property Taxes – unofficial consolidated text

Excisable Goods

Excise duty

Excise on Alcohol and Alcoholic Beverages

Excise on beer: 4.00 denars for each 1% volume of pure alcohol in one liter of the final product.

Excise on sparkling and still wine and fermented beverages: 0 denars

Excise on intermediate products:
- 33.00 denars per liter for products with less than 15% alcohol.
- 55.00 denars per liter for products with 15%-22% alcohol.

Excise on ethyl alcohol and spirits: 340.00 denars per liter of pure alcohol, measured at 20°C.

Tobacco Products

Excise on cigars:
- 21.37 denars per piece and 9% of the retail price.

Excise on cigarillos:
- 10.00 denars per piece and 9% of the retail price.

Excise on smoking tobacco (finely cut):
- 2,300.00 denars per kilogram net weight and 0% of the retail price.

Excise on other smoking tobacco and water pipe tobacco (hookah):
- 2,300.00 denars per kilogram net weight and 0% of the retail price.

Excise on snuff and chewing tobacco: - 2,300.00 denars per kilogram net weight and 0% of the retail price.

Excise on non-combustible tobacco products: - 4,000.00 denars per kilogram net weight of tobacco mixture and 0% of the retail price.

Excise on e-cigarette liquid: - 3 denars per milliliter volume.

*From 1 January 2024 to 1 January 2030, the specific and minimum excise duty on cigarettes increases by 0.23 denars per piece.
On 1 January 2024, the amount of the specific excise duty on cigars will increase by 4.00 denars, and from 1 January 2025 to 1 January 2030, by 2.00 denars per piece.
On January 1, 2024, the amount of the specific excise duty on cigarillos will increase by 2.00 denars, and from January 1, 2025, to January 1, 2030, by 1.00 denar per piece.
From 1 January 2024 to 1 January 2030, the amount of the specific excise duty on smoking tobacco such as fine-cut tobacco, other smoking tobacco, hookah tobacco (shisha), snuff tobacco, and chewing tobacco will increase by 150.00 denars per kilogram of net weight on 1 January each year.
From 1 January 2024 to 1 January 2030, the amount of the specific excise duty on non-combustible tobacco products will increase by 350.00 denars per kilogram of net weight of tobacco mixture on 1 January each year.
From 1 January 2024 to 1 January 2030, the amount of excise duty on the liquid intended for filling electronic cigarettes will increase by 0.20 denars per milliliter of volume on 1 January each year.

Energy Products and Electricity

Excise on Motor Gasoline:
- For gasoline with lead content over 0.013 grams per liter and aviation gasoline - 25 denars per liter.
- For unleaded gasoline with lead content up to 0.013 grams per liter - 22 denars per liter
DNA (additional excise duty reduction based on the average daily market price of Prem Unl 10ppm at the Mediterranean Cargoes FOB (Italy) quotation from Platts European Marketscan.)
If the average market price is greater than 800 USD/ton but less than or equal to 1,000 USD/ton, the DNA amount is 1 denar per liter.
If it is greater than 1,000 USD/ton but less than or equal to 1,200 USD/ton, the DNA amount is 2 denars per liter.
If it is greater than 1,200 USD/ton, the DNA amount is 4 denars per liter.

Excise on Diesel Fuel:
- As motor fuel - 15.5 denars per liter. DNA (additional excise duty reduction based on the average daily market price of 10 ppm ULSD at the Mediterranean Cargoes FOB (Italy) quotation from Platts European Marketscan.)
If the average market price is greater than 800 USD/ton but less than or equal to 1,000 USD/ton, the DNA amount is 1 denar per liter.
If it is greater than 1,000 USD/ton but less than or equal to 1,200 USD/ton, the DNA amount is 2 denars per liter.
If it is greater than 1,200 USD/ton, the DNA amount is 4 denars per liter. - As heating fuel – 15.5 denars per liter. DNA (additional excise duty reduction based on the average daily market price of Gasoil 0.1% at the Mediterranean Cargoes FOB (Italy) quotation from Platts European Marketscan.)
If the average market price is greater than 800 USD/ton but less than or equal to 1,000 USD/ton, the DNA amount is 1 denar per liter.
If it is greater than 1,000 USD/ton but less than or equal to 1,200 USD/ton, the DNA amount is 2 denars per liter.
If it is greater than 1,200 USD/ton, the DNA amount is 4 denars per liter.

Excise on Liquefied Petroleum Gas and Methane:

Excise on Kerosene:
- As motor fuel – 11.000 denars per liter.
- As heating fuel - 2.200 denars per liter.

Excise on Heating Oil:
- 0.100 denars per kilogram.

Excise on Natural Gas:
- As motor fuel - zero denars per normal cubic meter (nm³).
- As heating fuel - zero denars per normal cubic meter (nm³).

Excise on Electricity:
- For non-business use - zero denars per megawatt hour (MWh). - For business use - zero denars per megawatt hour (MWh).

Excise on Coal, Coke, and Lignite: - zero denars per gigajoule (Gj).

Excise on Petroleum Coke: - 84.6 denars per gigajoule (Gj).

Excise on Biofuels: - zero denars per kilogram.

Legislation

Law on Excise Duties – unofficial consolidated text

Law amending the Law on Excise Duties (Official Gazette of the RNM No. 77/21)

Law amending the Law on Excise Duties (Official Gazette of the RNM No. 57/22)

Law amending the Law on Excise Duties (Official Gazette of the RNM No. 209/23)

Type of contribution

Rates

Contribution for pension and disability insurance:

18,8%

Contribution for health insurance:

7,5%

Additional contribution for compulsory health insurance in case of work injury and occupational disease:

0,5%

Contribution for unemployment insurance:

1,2%

Lowest Base for Calculating and Paying Contributions

- 50% of the average salary per worker in the country published in January of the current year according to the data of the State Statistical Office.
- The average salary per worker in the country published in January of the current year for a self-employed person providing professional and other intellectual services.

Highest Monthly Base for Calculating and Paying Contributions

- Sixteen average salaries for employment income.
- Twelve average salaries for a self-employed person.

Legislation

Law on Compulsory Social Insurance Contributions – unofficial consolidated text

Law on Administrative Fees

Law on Municipal Fees

Law on Cash Payment Registration

Law on Tax Procedure