Income tax on rent, worked example, in Macedonia

Taxation Researcher | March 25, 2022

Non-resident couple´s rental income1
Monthly Rental Income2 1,500 6,000 12,000
Annual Rental Income 18,000 72,000 144,000
Less: Expenses3 25% (4,500) (18,000) (36,000)
= Taxable Income 13,500 54,000 108,000
Income Tax Rates4
Flat rate 10% 1,350 5,400 10,800
Annual Income Tax Due 1,350 5,400 10,800
Tax Due as % of Gross Income 7.50% 7.50% 7.50%
Thanks to:


Notes


1 The property is jointly owned by husband and wife.

2 Exchange rate used: 1.00 EUR = 62.00 MKD

3 Income-generating expenses are deductible when calculating taxable income. A statutory deduction of gross rent is given to account for income- generating expenses. Alternatively, taxpayers can opt for itemized deduction instead of availing the standard deduction.

4 Rental income is taxed at a flat rate of 10%.