Question 1

What is the standard withholding tax (WHT) rate on payments to non-residents?

Accepted Answer

Under the Law on Profit Tax, the standard statutory withholding tax rate is 10.0% on dividends, interest, royalties, intellectual property fees, management consulting, and entertainment services.

Question 2

How do Double Taxation Avoidance Agreements (DTA) affect withholding tax in North Macedonia?

Accepted Answer

DTA treaties between North Macedonia and foreign states often reduce withholding tax rates to 5% or 0%, provided the foreign entity submits a valid Tax Residency Certificate (TRC) to the Public Revenue Office (UJP).

Question 3

When must withholding tax be withheld and remitted to the UJP?

Accepted Answer

The domestic payer must deduct the withholding tax simultaneously with the execution of the foreign cross-border payment and submit Form DD-Z to the UJP.

Question 4

Are telecommunications and software license fees subject to withholding tax?

Accepted Answer

Yes. Royalties, software licensing fees, and technical service fees paid to foreign corporate licensors are subject to 10% withholding tax unless treaty relief applies.

Question 5

What penalties apply for failure to deduct withholding tax on foreign transfers?

Accepted Answer

Failure to deduct and remit WHT makes the domestic resident entity legally liable for the unpaid tax plus statutory late payment interest and administrative fines.

Statutory Component	Amount / Metric
Statutory or DTA Treaty Withholding Rate	--
Gross Outbound Cross-Border Payment	--
Withholding Tax Deducted at Source (UJP)	--
Net Amount Remitted Abroad	--

North Macedonia Non-Resident Withholding Tax (WHT) Calculator 🇲🇰

Calculation Summary & Statutory Breakdown

📊 Statutory Breakdown Matrix

Non-Resident Withholding Tax in North Macedonia (Задржување на данок)

Engr. Muhammad Shahzad