The new Law on Personal Income Tax (“PIT Law”), applicable from 01 January 2019, abandons the “flat” tax rate and introduces progressive taxation. Besides the tax rate at 10%, the new PIT Law envisages a tax rate at 18% and 15%, applicable to different types of income.

On 24 December 2018, the Assembly of the Republic of Macedonia adopted the new PIT Law that enters into force from the day of its publishing in the Official Gazette of the Republic of Macedonia and will apply from 01 January 2019. The currently applicable regulation was providing a “flat” tax rate at 10%. However, the new PIT Law, abandons this rate and introduces various changes.