Tax News: Rulebook on the calculation and payment of personal income tax advance payments

Tax News

KPMG's Tax News outline and highlight legislative changes and trends in the area of tax.


New Rulebook

Based on the recently promulgated amendments to the Personal Income Tax Law (“PIT Law”), the Ministry of Finance adopted a Rulebook regarding the method of calculation and payment of the income and personal income tax (“the Rulebook”). It was published in the Official Gazette no. 197 dated 29 December 2017.

The Rulebook prescribes:

  • the method of calculation and payment of PIT advance payments
  • the form and content of the PIT electronic calculation
  • the way of filling in and approval of the electronic calculation and
  • the approach for correction of the electronic calculation for which PIT was already paid.

Electronic system “e-Personal income tax”

The electronic calculation for personal income tax is filled in and submitted to the Public Revenue Office (PRO) through an electronic system called “e-Personal income tax” which was put into use on 29 December 2017.

As of 1 January 2018, the payment of PIT and the payment of the net income will be processed through a payment order - form PP 53 - which will be generated by the PRO.

The payment of unsettled PIT liabilities which relates to the payments made to individuals before 1 January 2018 can be executed through the payment method that was applied before the introduction of the changes by using the payment order PP 50.

The PRO will reject all electronic calculations and will cancel all payment orders that have not been paid within 30 days as of the date the payment order PP 53 was generated, in which case the PP53 will need to be regenerated in order to allow payment.

New personal allowance for calculation of personal income tax

The Ministry of Finance announced the personal allowance which reduces the PIT taxable base for salaries in 2018. The annual personal allowance is in the amount of MKD 90,372 while the monthly personal allowance is in the amount of MKD 7,531.

© 2022 KPMG North Macedonia DOO, a limited liability company registered in the Republic of North Macedonia and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

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