- Overview: North Macedonia
- Global HR Compliance
- Global PEO and payroll
- Work permit for hiring expats via PEO
- Expand without a company set up
- Contractor vs. employee: which is better?
Global PEO and Payroll in North Macedonia
Getting your business up-and-running in North Macedonia can be challenging, especially if you do not speak the native language. Establishing your own business entity in North Macedonia is an option to be considered as you expand abroad. But before you invest valuable resources in setting up business in North Macedonia, you should be fully aware of the risks involved.
Acumen’s Global PEO and Payroll solution was designed especially for companies like yours, to smooth the way for quick, easy and risk-free business operations in North Macedonia, without having to establish a legal business entity.
Acumen International – Your Professional Employer Organization in North Macedonia
Navigating the Macedonian legal system and adhering to regulations governing employment and taxation can be challenging for businesses, especially if you are not a native Macedonian speaker. Partnering with Acumen International as a global Professional Employer organization (PEO) provides you with the local knowledge and support you need to conduct business in North Macedonia without concern for legal and compliance risks.
Whether you represent international client companies or you are taking your own business operations abroad, Acumen International’s Global PEO and payroll service allows you to hire and payroll local and expat employees in North Macedonia. With Acumen in your corner, you can quickly and easily onboard and compensate your employees without risk of legal repercussions.
International Global Payroll and Taxation in North Macedonia
Employment related taxes
Taxation of individuals’ income in North Macedonia is based on their residence status. Macedonian tax residents are taxed on their worldwide income. Non-residents are taxed on their income derived in the Macedonian territory.
Nontaxable payments The following are exempted from tax:
- Paid premiums for the collective insurance of employees borne by the employer and by self-employed individuals for injuries at work
- Paid premiums for life and other insurance for employees and for self-employed individuals, in the amount of two average monthly gross salaries in the country per year
Social security contributions. The basis for the mandatory social security contributions calculation is the salary and the additional remuneration from employment (including bonuses) as determined in the labour legislation. The law also sets the minimal base for payment of social security contributions on salary and bonuses. The highest base for payment of mandatory social security contributions on a monthly basis is 16 average salaries paid in North Macedonia. No social contributions are due on the difference above this threshold.
Calculation and payment of all the employees’ social contributions is regulated under the Law on Mandatory Social Insurance Contributions. Employers are obligated to calculate, withhold from employees’ gross salary, and pay into the accounts of respective funds the compulsory social contributions and PIT.
Employers are required to withhold the contributions from gross salary. No employer contributions are required.
The Public Revenue Office (PRO) is the authorised body to control the calculation and the payment of compulsory social contributions and PIT on salaries. All employers send their calculations to the PRO that controls them and, if correct, issues a declaration of acceptance that is afterwards presented to the respective depository bank, in order to perform the payment of mandatory social security contributions, PIT, and net salaries.
Payroll Cycle in North Macedonia
The salary shall be paid at intervals, not exceeding one month.
The salary shall be paid no later than 15 days upon the expiry of the pay period.
If the day of payment is a non-working day, the salary shall be paid no later than the next working day.
The employer shall be obliged to notify the employees in writing in advance about the day of payment and any changes thereto.
Non-payroll taxes in North Macedonia
In general, the VAT regulations are in line with the provisions of the sixth European Union (EU) VAT directive.
Residents that do not meet the criteria above may voluntarily register for VAT purposes at the beginning of each calendar year.
The standard VAT period is one calendar month. The taxpayer is obligated to submit a VAT return for each tax period within 25 days following the end of the relevant tax period.
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How Acumen’s International PEO and Payroll Service can Benefit Your Business in North Macedonia
Compensating your local and expat workforce in North Macedonia and closely adhering to Macedonian taxation requirements can divert your attention and resources from activities that help your business grow. A reliable global employment solution like Acumen’s Global PEO and Payroll service can take a substantial burden off your shoulders so you can focus on running your company.
Outsourcing the administrative and compliance tasks involved in employee payroll is one approach, but we have a better solution. Acumen International offers a global PEO and payroll solution that goes beyond outsourcing. We hire and compensate your global workforce on your behalf, and take care of all the details of payroll while ensuring full compliance with Macedonian labor and taxation laws.
It is important to note that Acumen does not provide international global payroll services as a standalone solution, but only as a part of our global PEO and Payroll solution.
Our comprehensive global PEO and payroll services are just some of the benefits of partnering with Acumen International. We make it easy for you to achieve your business goals in North Macedonia by officially employing and compensating your best selected global talent – both locals and expats – without concerns for legal and compliance risks faced by global employers.
Disclaimer: Any of the above information is subject to changes imposed by Macedonian laws. To get the latest updates on taxation in North Macedonia and in 190 countries worldwide, contact Acumen’s team of global employment experts.