Freelancing in North Macedonia: sole-trader registration, the flat 10% income tax, and the MKD 2,000,000 VAT threshold
A North Macedonian freelancer registers as a sole trader (trgovec poedinec) with the Central Registry and gets an EDB tax number from the Public Revenue Office (UJP). Personal income is taxed at a flat 10%, social contributions run to about 28% of the contribution base, and VAT registration becomes mandatory once annual turnover passes MKD 2,000,000. Standard VAT is 18%, filed quarterly for smaller taxpayers.
This article is general information, not tax advice. Regulations change — verify the current rules with the official sources below before acting.
North Macedonia keeps freelancing relatively straightforward: a single flat income-tax rate, one nationwide VAT system, and a well-defined VAT threshold. The main early decisions are how to register and when VAT starts to apply.
Registering as a sole trader
Most independent workers register as a sole trader (trgovec poedinec) or open an individual activity, entered in the Central Registry. Registration triggers issuance of an EDB (Edinstven danočen broj, Unique Tax Number) from the Public Revenue Office (Uprava za javni prihodi, UJP) — the 13-digit tax ID; numbers for self-employed individuals begin with 41. From there you file personal income tax on your business income and pay social contributions. There is no separate legal entity: as a sole trader, you and the business are the same person.
Flat 10% income tax
Personal income — including business income of the self-employed — is taxed at a flat 10%, in force since 1 January 2023 when it replaced an earlier progressive structure. Individual taxpayers with income not subject to withholding, such as self-employment income, file an annual personal income tax return with the UJP. Because the rate is flat, your headline tax is easy to project once you know your taxable base.
Social contributions
Mandatory social contributions total roughly 28% of the contribution base: pension and disability insurance 18.8%, health insurance 7.5%, employment insurance 1.2% and additional health insurance 0.5%. For the self-employed the base is not simply your profit — the law sets a minimum base (a share of the national average salary) and a maximum base (a multiple of it), so contributions have both a floor and a ceiling. These fund your pension and health cover.
The MKD 2,000,000 VAT threshold
VAT registration with the UJP is mandatory once total annual turnover exceeds MKD 2,000,000 — or is projected to at the start of your activity. Below that you may register voluntarily at the start of a calendar year. The standard VAT rate is 18%, with reduced rates of 5% and 10% on specific goods and services. Smaller taxpayers benefit from a lighter cadence: if prior-year turnover was under MKD 25,000,000, your VAT period is the calendar quarter rather than the month.
General information about freelancing in North Macedonia, current as of the review date above, and not tax advice. Thresholds and rates change — confirm current figures with the Public Revenue Office (UJP, ujp.gov.mk) or a qualified accountant.
Frequently asked questions
What is the VAT registration threshold in North Macedonia?
MKD 2,000,000 of total annual turnover. Once your turnover exceeds — or is projected at the start of activity to exceed — this amount, VAT registration with the Public Revenue Office (UJP) is mandatory. Below it you may register voluntarily at the start of a calendar year. Standard VAT is 18%, with reduced rates of 5% and 10% on certain goods and services; if prior-year turnover was under MKD 25,000,000 the VAT period is the calendar quarter rather than the month.
How much income tax and social contributions does a freelancer pay?
Personal income is taxed at a flat 10%, in force since 2023. On top of that, mandatory social contributions total about 28% of the contribution base: pension and disability insurance 18.8%, health insurance 7.5%, employment insurance 1.2% and additional health insurance 0.5%. For the self-employed the contribution base is set by law between a statutory minimum (a share of the national average salary) and a maximum, rather than on actual profit alone.