At the beginning of the 1990s, with the introduction of the new economic system in the Republic of Macedonia, a new fiscal system was also introduced, based on the principles of a market economy, private ownership, and the autonomy of economic entities… A new principle embedded in the current fiscal system of Macedonia is the principle of allocative neutrality of taxes and the budget, according to which the instruments of fiscal policy are not intended to stimulate or support specific sectors.
A new significant principle is the abolition of the majority of contributions and their replacement with taxes. Only contributions to social funds have been retained, namely contributions for health, pension, and disability insurance. The principle of shifting the tax burden from direct to indirect taxes is also affirmed, meaning a reduction in the share of income taxes and an increase in consumption taxes.
In 1994, the first reform of the tax system in the Republic of Macedonia began with the new Personal Income Tax Law (PITL), the Corporate Income Tax Law (CITL), and the Property Tax Law, marking the start of the Public Revenue Office (PRO) functioning as the institution responsible for the assessment, collection, and control of taxes in Macedonia for all taxpayers.
The act establishing the Public Revenue Office in the Republic of Macedonia is the Law on the Public Revenue Office (“Official Gazette of RM”, No. 80 of 30.12.1993, effective from 01.01.1994). With the enactment of this law, the existing Republic Administration for Revenues and its regional bodies – the tax departments and inspection departments – continued to operate as the Public Revenue Office with a new scope defined by this law. The new institution also incorporates employees from the Social Accounting Service of Macedonia who work on control-related tasks.
The introduction of Value Added Tax (VAT) on April 1, 2000 (which replaced the previous turnover tax on goods and services) and the new excise taxation system in 2001 are considered the greatest reforms of the Macedonian tax system.
The Law on the Public Revenue Office, adopted in September 2005, together with subsequent amendments and additions, represents the current legal framework that defines the scope, organization, work procedures, and management of the PRO, as well as its powers and responsibilities in the collection, recording, processing, and protection of data related to the activities of the PRO.
With the adoption of the Procedural Tax Law in 2006, general tax law and tax administrative procedures were regulated, including the procedures for tax assessment, inspection, collection of public revenues, the rights and obligations of taxpayers, appeal procedures, the conduct of misdemeanor proceedings, and related misdemeanor provisions.

Fiscal System in a country, it refers to the system of public expenditures applied in that country.

Public Revenues are the revenues collected from citizens and the economy to provide funds for financing the functions of the state in order to meet general and collective needs.
In most countries, the state also provides its own revenues from property owned by the state. However, these revenues are usually insufficient to finance all functions of interest to the citizens and the state as a whole. Therefore, in all countries, in addition to revenues from its property, states are obliged to collect revenues from other sources.
One of the fundamental and traditional rights of the state is to impose an obligation on citizens and companies to contribute to covering public expenditures by allocating a portion of their income and property. The most commonly accepted principle is that every citizen should participate in public revenues according to their financial capacity. This principle is enshrined in Article 33 of the Constitution of the Republic of North Macedonia:

"Everyone is obliged to pay taxes and other public contributions and to participate in
the coverage of public expenditures in the manner prescribed by law."

In recent years, taxes have collected around 26–27% of the gross domestic product.

In the Republic of North Macedonia, the revenue balance consists of: revenues from state and public enterprises and institutions, taxes, contributions, customs duties, fees, public loans, gifts, and aid.
Although different types of revenues are listed, except for public loans and gifts, all other types of public revenues actually represent some form of tax, making the entire public revenue system equivalent to the tax system, in which taxes account for more than 80% of the revenues of the Budget of the Republic of North Macedonia.

Taxes are a public revenue that arises from the obligation imposed by the state on citizens and enterprises to compulsorily allocate a portion of their income, turnover, or property to meet the needs of the state.
The primary function is fiscal, but very often taxes are used to achieve certain economic and social objectives, implement stabilization policies, and curb inflation.

The basic elements of every tax system are:

1. Taxable Object
The taxable object includes income, turnover, and property. Determining the taxable object simultaneously involves specifying the types of taxes that will be paid.
In the past, agriculture was the most important activity, and land was the most significant property, so the taxable object mainly consisted of land and income from land, and later other types of property such as buildings, capital, and income.
Over time, the role of consumption, that is, turnover, has significantly increased. The state also specifically introduced and collected taxes on certain products over which it had a monopoly, such as salt and tobacco. The state collected customs duties, excise duties, tolls, and other similar charges, which take the form of consumption taxes.

2. Taxpayer
An important question for every type of tax is – who is the taxpayer, or tax remitter, on whom the tax burden falls, and who is responsible for paying the tax?
The bearers of the tax obligation are entities that carry out some activity and have different organizational forms, as well as citizens.

3. Tax Base
The tax base is the volume or amount of the taxable object on which the tax is calculated. For example, consumption taxes (indirect taxes) are usually paid on the turnover of goods or services, while income tax (direct taxes) is paid on all income earned by a citizen from all sources during a year.

4. Tax Rate
The tax rate is the percentage or portion that must be paid as tax on the determined tax base. If the tax rate is set at 10%, it means that this percentage applied to the tax base must be paid as tax to the state.

Two types of tax rates are most commonly applied:
– Proportional and
– Progressive

Tax payment according to proportional rate This means that the tax is always paid at the same rate, regardless of the size of the turnover or income.
Progressive rates are mainly used for taxing income, profits, or earnings, and imply the application of rates that increase with the growth of the base, according to amounts limited by law.

The division of taxes in our tax system is carried out as follows:

Income taxes or direct taxes are:

Subject of taxation
The citizens’ income is taxed through the personal income tax, which is paid annually on the total income from all sources, earned both domestically and abroad, such as: income from employment; income from self-employment; income from copyrights and related rights; income from the sale of own agricultural products; income from industrial property rights; income from lease and sublease; income from capital; capital gains; winnings from games of chance; income from insurance; and other income.

 

Taxpayer
A taxpayer of income tax is any natural person resident in the Republic of North Macedonia for the income earned both domestically and abroad.
A taxpayer of income tax also includes a sole trader, as well as a natural person engaged in agricultural activity, craft activity, or providing services or practicing a freelance occupation. A taxpayer of income tax also includes a natural person who is not a resident of the Republic of North Macedonia for the income earned within the territory of the Republic of North Macedonia.
A taxpayer of income tax also includes a natural person who conducts activity without registration and earns income subject to taxation under the provisions of the Personal Income Tax Law.

 

Tax Period
The period for which the personal income tax is calculated is one calendar year.

 

Tax Base
The tax base for determining the income tax represents the total gross income earned from all sources (in cash, in securities, in kind, or in any other form) both domestically and abroad, during the tax period, reduced by the amount of:
1) contributions to mandatory social insurance;
2) tax deductions and
3) standardized or actual expenses provided by law.

 

Tax Rates
Until January 1, 2007, the personal income tax, which taxes citizens’ income, was calculated using progressive tax rates:

  • From 1994 to 2000, income up to the amount of 2 average monthly salaries (AMS) was taxed at a rate of 23%; income from 2 to 5 AMS at a rate of 27%; and income above 5 AMS at a rate of 35%. The tax base for income earned from all sources was reduced by ¼ of the amount of the AMS earned in the Republic of Macedonia.
  • From 2001 to 2004, income earned in the year up to 360,000 denars was taxed at a rate of 15%, and income above 360,000 denars at a rate of 18%. The tax base for income earned from all sources was reduced by a personal exemption of 30,000 denars, which is adjusted with the coefficient of the AMS growth achieved in the previous year.
  • From 2005 to 2006, citizens’ income was taxed again at three levels: income earned in the year up to 360,000 denars was taxed at a rate of 15%, income from 360,000 to 720,000 denars at a rate of 18%, and income above 720,000 denars at a rate of 24%, with a tax exemption of revalued 30,000 denars applied.
  • Since January 1, 2007, the calculation of personal income tax was introduced using a proportional tax rate, the so-called “flat tax.” In 2007, the tax rate on citizens’ income was 12%, with a reduction of the tax base by a revalued 30,000 denars.
  • Since 2008, the tax rate on citizens’ income was reduced to 10%. From January 1, 2009, with the introduction of integrated collection of tax and salary contributions, the tax base for the annual income earned is reduced by a tax exemption of 84,000 denars. This amount is revalued at the beginning of each subsequent year using the growth coefficient of the average monthly net salary of employees in the Republic of North Macedonia achieved in the previous year, according to data from the State Statistical Office.
  • Since January 1, 2019 , progressive taxation was introduced for the advance calculation and payment of personal income tax for different types of income: income from employment, income from copyrights and related rights, income from the sale of own agricultural products, and income from self-employment, on the appropriately determined tax base using the following rates: Monthly tax base: up to 90,000 denars – 10%; from 90,001 denars – 9,000 denars plus 18% on the portion of income exceeding 90,000 denars. Annual calculation and payment: 10% for income up to 1,080,000 denars; from 1,080,001 denars – 108,000 denars plus 18% on the portion of income exceeding 1,080,000 denars. For income from industrial property rights, income from lease and sublease, income from capital, capital gains, winnings from games of chance, income from insurance, and other income, the tax is paid at a flat rate of 15%.
  • For 2020, 2021, and 2022, the personal income tax rate for all types of income is 10%, except for: winnings from games of chance, which are taxed at 15%.
  • Since 2023, the personal income tax rate for all types of income is 10%, except for winnings from games of chance, which are taxed at 15%.

Taxpayer
According to the Corporate Income Tax Law (CITL), a corporate income tax payer is a legal entity (subject) – a resident of the Republic of North Macedonia that earns profit from conducting business activities domestically and abroad, and a permanent establishment of a foreign entity for the profit earned from conducting business activities within the territory of the Republic of North Macedonia.

 

Taxable Item and Tax Base

  • From 1994 to 2008, the tax base for calculating corporate income tax represents the difference between:
    – total revenues and total expenses, in amounts determined according to accounting regulations and accounting standards (accounting profit/loss or the financial result from operations in the business year);
    – adjusted (increased/decreased) by the amount of non-deductible expenses and non-taxable income for tax purposes;
    – the calculated tax on the thus determined tax base is reduced by the amount of the calculated tax for approved tax exemptions and reliefs, as well as by the amount of tax paid on income/profits that the domestic legal entity earns abroad, either directly or through its subsidiary.
  • Since 2006 taxation was introduced with withollding tax calculated on the paid income of foreign legal entities earned in the Republic of North Macedonia from dividends, interest, royalties, entertainment or sports activities, management, consulting, financial and research services, lease of real estate, insurance premiums for insurance or reinsurance of risks, and telecommunications services between the Republic of North Macedonia and the foreign state, unless otherwise regulated by international agreements for the avoidance of double taxation with the country in which the recipient of the income is a resident.
  • Since 2006– some of the taxpayers are taxed under a special lump-sum system of taxation of Total Revenue. Domestic legal entities included in this system were:
    – classified as micro-enterprises;
    – owned by no more than two natural persons;
    – whose total income from any source does not exceed 50,000 euros in denar equivalent;
    – the income earned from a single customer or from a person related to the customer does not exceed 80% of the total income;
    – engage in business activities, except banking, financial, insurance, and activities in the field of games of chance and entertainment games;
    – whose number of employees does not exceed 9 (nine).
    This model from 2007, is transformed into “simplified tax regime for trading companies”, which includes trading companies from the Republic of North Macedonia that carry out business activities, except banking, financial, insurance, and activities in the field of games of chance and entertainment games, whose annual total income from all sources does not exceed 3,000,000 denars.
    With the latest amendments to the Corporate Income Tax Law since October 2011, “the simplified tax regime” It also applies to trading companies classified as small and micro traders and legal entities resident in the Republic of North Macedonia that keep accounts and prepare annual financial statements in accordance with the Law on Trading Companies and earn total income between 3,000,000 and 6,000,000 denars. For them, there is an option for voluntary determination of the taxation method—either on total earned income or on earned profit. With the latest amendments, traders earning annual total income from all sources up to 3,000,000 denars are exempt from paying corporate income tax.
  • Since 2009 in the Republic of North Macedonia, the so-called “Estonian model” of corporate income taxation is applied. Specifically, under this model, only the amount of the fiscal base is taxed, that is, non-deductible expenses reduced by tax credits and tax reliefs and exemptions, and the accounting profit earned for the tax period – the year – is taxed only if it is distributed for the payment of dividends and other profit distributions. If the profit is accumulated and reinvested to expand the business, it is not subject to taxation.
  • In 2010, there arose a need to introduce a system that, for capital-linked companies – residents of the Republic of North Macedonia, would ensure that profit distributed as dividends among companies in the chain is not taxed multiple times. A system was introduced "principle of exemption" which stipulates that the taxation of distributed profit in the form of dividends is carried out at the end of the chain, with the last taxpayer who distributes the profit to the shareholders/partners – natural persons and to non-resident legal entities that are capital owners.
  • In 2014 the tax base for calculating corporate income tax represents the taxable profit, which is determined from the accounting gross profit earned according to accounting regulations and accounting standards (as the difference between total revenues and total expenses), increased by non-deductible expenses.

Tax Period
In the period from 1994 to 2000, the determination of corporate income tax during the year was carried out through a provisional (semi-annual) tax calculation for the period January – June and a final (annual) tax calculation for the business year. In this period, monthly tax advances were also paid for the period February – June, based on the tax base determined in the annual calculation for the previous year, and for the period July – December in the current year and for January in the following year, based on the tax base determined in the semi-annual calculation for the current year.
In the period from 2001 to the present, the determination of corporate income tax is carried out for the entire business year. Taxpayers also pay monthly advances on corporate income tax for the months February – December in the current year, and for January in the following year, based on the tax base determined in the tax return prepared for the previous year.

 

Tax Rate
In the period from 1994 to 2000, the corporate income tax rate is 30%. During the period from 1997 to 2006, the corporate income tax rate is 15%. For 2007 The tax rate on profit determined in the tax balance sheet is 12%. Since 01.01.2008, the corporate income tax rate is 10%.
The withholding tax rate on the prescribed income/profits of foreign legal entities earned in the Republic of North Macedonia, from 01.01.2006 to 31.12.2006 is 15%. For the 2007 business year, the rate was reduced to 12%, while from 01.01.2008 from then on, it is 10%, unless otherwise specified by international agreements for the avoidance of double taxation/exemption.

Consumption Taxes or Indirect Taxes are:

System development
The Law on Value Added Tax (VAT) replaced the Law on Turnover Tax on Goods and Services. Although the VAT Law was adopted in 1999, its implementation was postponed and began on April 1, 2000. The law was drafted in accordance with the Sixth VAT Directive of the European Union and represented a straightforward solution for taxing value added as a general consumption tax in a country that was not yet an EU member. By applying all the fundamental provisions and principles of this tax, the VAT Law ensured neutrality in the field of competition, both in domestic and international trade of goods and services. With the enactment of this law, the tax base was broadened, the possibility of multiple cascading taxation and the problems caused by provisions for proving numerous tax exemptions were overcome, and due to the interconnected functioning of the system among taxpayers, tax discipline was strengthened.
VAT is charged at all stages of production and trade, as well as across the entire service sector. Through the mechanism of input tax deduction, taxation within the entire entrepreneurial domain is avoided. According to its purpose, VAT levies the total private and public final consumption, as well as the final consumption in the entrepreneurial domain, unless, according to the law, it is relieved through the deduction of input tax.
During the implementation period of VAT, several amendments to the law were introduced aimed at narrowing opportunities for tax avoidance and preventing chains of fraud and missing traders, such as: linking VAT payers who have managerial, ownership, or organizational connections into a single VAT entity; enabling the tax authority to deny or suspend VAT registration for taxpayers who are unreachable, cannot prove their business activities, fail to submit regular tax returns, or have engaged in tax evasion; and requiring the submission of financial reports on cash transactions and bank payments for executed transactions. At the same time, the amendments aimed to facilitate payment conditions and preserve the liquidity of taxpayers by shifting the deadlines for paying tax obligations from the 15th to the 25th of the month when taxpayers have no obligations for other taxes. By allowing VAT registration during the year immediately after reaching the threshold turnover of 2,000,000 denars, taxpayers were enabled to more quickly benefit from this tax.

 

Subject of taxation
VAT is levied on the turnover of goods and services carried out for consideration within the country by a taxpayer, within the scope of their business activity, as well as on the import of goods.

 

Taxpayer
A taxpayer is a person who permanently or temporarily independently carries out a business activity, regardless of the purpose and results of that activity.

 

Tax Period
Depending on the turnover achieved in the previous year or the estimated turnover at the start of the business activity, the tax period may be one month or three months.

 

Tax base
The tax base is the total amount of consideration received, or to be received, for the turnover, excluding value added tax.

 

Tax Rates
VAT is calculated by applying proportional tax rates to the tax base for taxable turnover of goods and services and imports, with the general tax rate of 18% and the preferential tax rates of 10% and 5%.

System development
The new Excise Duty Law (EDL), adopted in 2001, is largely harmonized with the relevant European Union directives. It introduces new legal regulations for excise warehouses, the manner of storage and handling, and enhanced control of the movement of goods subject to excise duty. Tax exemptions have been reduced, and mechanisms for recording and monitoring their implementation have been established.
Since January 1, 2010, excise duties, as a public levy previously administered by the Public Revenue Office, have been transferred to the Customs Administration.

 

Taxpayer
An excise duty liable person is the holder of an excise license, a person who imports excise goods, or a manufacturer or importer of goods for which the excise duty is paid upon using control stamps.

 

Subject of taxation
Excise duties are a special type of tax levied directly or indirectly on the consumption of a specific group of goods – excise goods: mineral oils, alcohol and alcoholic beverages, tobacco products, and passenger cars.
Excise goods are subject to excise duty either upon their production within the excise territory or upon their import.
Excise duty generally arises when excise goods leave the excise warehouse or are consumed within it, when they are produced outside an excise warehouse, when a shortage is determined, when the excise license expires, or when the goods are transported outside the legally regulated procedure.

 

Tax base and tax rates
Excise duty is paid as:

  • Specific excise duty on mineral oils, per unit of measure liter, indicated by their tariff codes;
  • Specific excise duty on beer, wine, intermediate products, and ethyl alcohol, per unit of measure liter/degree of alcohol or liter/degree of extract for beer;
  • Combined excise duty on tobacco products, per unit of quantity and as a percentage of the retail price;
  • Progressive rates, depending on the value of passenger cars.

Excise duty on intermediate products, ethyl alcohol, and tobacco products is paid using control stamps.

 

Tax Period
The period for which excise duty is calculated and paid is one calendar month in which the excise arose or when the excise duty is paid using control stamps.

The authority responsible for implementing the customs system is The Customs Administration of the Republic of North Macedonia, which, like other customs authorities worldwide, is responsible for protecting the financial interests of the Republic of North Macedonia, ensuring the safety, health, and life of its citizens, supporting economic activities, protecting against unfair competition, and contributing to increasing the competitiveness of the Macedonian economy.

Unlike other types of taxes, whose primary function is fiscal, in the case of customs duties, as a type of tax, this function is secondary, and their main function is protective. Imported goods are charged with the prescribed customs duty amount and, therefore, compared to the same domestic product, may have a higher price, reducing their competitiveness, which is the primary purpose of customs duties.

The object of customs, i.e., taxation, is the import of goods (rarely the export), and the customs base is the value of the imported goods.

All natural and legal persons who import goods from abroad are considered liable.

At the same time, exemptions or reliefs are provided for certain goods, such as personal luggage of passengers, assistive devices for persons with disabilities, or goods up to a certain monetary amount, as well as for specific cases or individuals, such as diplomatic and consular officers or employees working abroad.

The customs tariff, as a very important element of the customs system, is aligned with the rules of the World Trade Organization and the EU Combined Nomenclature.

System development

  • From January 1, 1994 to June 30, 2005 (According to the Law on Property Taxes of December 30, 1993), the assessment and collection of property taxes – property tax, inheritance and gift tax, and tax on the transfer of real estate and rights – is carried out by the Public Revenue Office. During the validity of this law, the tax rates were fixed.
    During the first three years of the law's implementation, the rates by type of tax ranged from 0.10% for property tax. The rates for inheritance and gift tax varied depending on the order of inheritance. Thus, no tax was paid by an heir or recipient of a gift from the first order of inheritance, while for the second order the rate was 5%, and for the third order the tax was calculated at a rate of 10%. The rate for the tax on the transfer of real estate and rights was 3%.
    With the legal amendment and supplement, which came into effect on January 1, 1997 was established a change regarding the level of tax rates For the second and third order of inheritance, the rates were reduced to 3% for the second and 5% for the third order. With this legal amendment, the provision regulating the taxation of ownership of movable property with a property tax rate of 0.50% of the market value of the property was also removed, including: passenger motor vehicles over 1.8 liters engine capacity, buses, freight motor vehicles, freight trailers, tractors, combines, watercraft, and airplanes, provided they are not used directly for conducting business activity.
    The tax rates were maintained at this level until the validity of this Law, which lasted until June 30, 2005.
  • In 2005 the process of decentralization in the Republic of North Macedonia began. With the new Law on Property Taxes, which came into effect on July 1, 2005, the authority over property taxes was transferred from the Public Revenue Office to the local self-government units (municipalities and the City of Skopje).
    According to the Law on Property Taxes currently in force, the provisions have been amended in line with the decentralization process. The assessment and collection of property taxes are now carried out by the municipal administration, the administrations of the municipalities within the City of Skopje, and the administration of the City of Skopje. The tax rates are proportional, and the rate for each type of tax is determined by the Municipal Council through a decision.

The following are included in the group of property taxes:

Subject of taxation
Property tax is an annual tax paid on real estate, with the exception of real estate that is explicitly listed as exempt from this type of tax.

 

Taxpayer
Правно или физичко лице, сопственик, или во одредени случаи корисник или плодоуживател на имотот.

 

Tax Base
The basis for calculating property tax is the market value of the real estate, which is determined by a Commission established by the Council of the respective municipality or the Council of the City of Skopje, operating in accordance with the prescribed Methodology for determining the market value of real estate.

 

Tax rate
The rate is proportional and ranges from 0.10% to 0.20%. The authority responsible for determining the rate is the Council of the respective municipality or the Council of the City of Skopje.

Subject of taxation
All real estate, as well as the right of usufruct and use of real estate, which heirs receive through inheritance under the Law on Inheritance, or which recipients receive as a gift under a gift agreement, is subject to taxation under inheritance and gift tax.
Овој вид на данок се плаќа и доколку се наследат или се примат како подарок готови пари, други парични побарувања, хартии од вредност и друг подвижен имот, под услов да нивната пазарна вредност е повисока од износот на едногодишната просечна плата во РМ во претходната година.

 

Taxpayer
The taxpayer of inheritance and gift tax is any natural or legal person – a resident of the Republic of North Macedonia who inherits certain property or receives property as a gift, as well as foreign natural or legal persons – non-residents, for the real and movable property located in the territory of the Republic of North Macedonia that they inherit or receive as a gift.

 

Tax Base
The basis for calculating inheritance and gift tax is the market value of the inherited or gifted property, according to the prescribed Methodology, with this value reduced by debts and expenses encumbering the property subject to taxation.

 

Tax Rate
The rate is proportional and varies depending on the order of inheritance. If the taxpayer is of the second order of inheritance, it ranges from 2% to 3%, while if the taxpayer is of the third order of inheritance or has no kinship with the decedent or donor, it ranges from 4% to 5%.
Heirs of the first order of inheritance are exempt from tax. The Council of the respective municipality, or the Council of the City of Skopje, determines the tax rate by decision.

Subject of taxation
Real estate transfer tax is paid on every transfer, with or without consideration, of ownership rights, as well as on other ways of acquiring real estate between legal and natural persons.

 

Taxpayer
Typically, the seller of the real estate – whether a legal or natural person – is the taxpayer for real estate transfer tax. However, there are exceptions (provided by law) where the buyer may be the taxpayer if stipulated in the sales contract. Additionally, in the case of an exchange of real estate, the taxpayer is the participant who provides the more valuable property in the exchange.

 

Tax Base
The basis for calculating the tax is the market value of the real estate at the time of the transaction. In the case of an exchange of real estate, the tax base is the difference between their market values. In the case of the sale of real estate during bankruptcy or enforcement proceedings, the tax base for calculating the real estate transfer tax is the price achieved through public auction, or the price determined by direct agreement in the event of two consecutive unsuccessful public auctions.

 

Tax Rate
The rate at which the tax is calculated is proportional and ranges from 2% to 4%. The authority to decide the rate is vested in the Council of the respective municipality or the Council of the City of Skopje.

Contributions are public charges that the taxpayer is obliged to calculate and pay from the gross employment compensation to the accounts of the relevant social funds, and which serve as the basis for securing current and future rights of the insured – rights to healthcare, pension benefits, or unemployment compensation.

 

Integrated Collection of Personal Income Tax and Mandatory Social Security Contributions

 

From January 1, 2009, the Republic of North Macedonia introduced the principle of gross salary calculation and the system of integrated collection of personal income tax and mandatory social security contributions.
In the one-stop system for administering gross salaries, the Public Revenue Office becomes the competent authority for the collection and control of all salary-related contributions, namely: personal income tax, pension and disability insurance contributions, health insurance contributions, and unemployment insurance contributions.
This system enabled each institution to perform its core function – the Pension and Disability Insurance Fund, the Health Insurance Fund, and the Employment Agency to ensure the rights of the insured arising from the paid mandatory social security contributions, such as providing pensions, healthcare services, and unemployment benefits, while the Public Revenue Office focuses on securing the funds necessary for the social security of citizens.
This system, technically and technologically designed to ensure the security and timeliness of processes and accurate information for everyone – employees, payers, funds, and banks – guarantees higher quality and lower operating costs for all involved institutions, particularly for employers and other salary payers.

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