In accordance with the general process of decentralization in the Republic of Macedonia, one of the key dimensions is the fiscal decentralization, i.e. fiscal autonomy in the competence of the local self-governments.
Apart from transfers from the budget of the central government, which are payable in accordance with the Law on financing of the units of the local self-government, part of the other laws and the supporting regulations also enable the units of the local self-government to have financial autonomy in the determining of the height of the following taxes and fees on the local level:
- Immovable property, presents and heritage tax (Law on property taxes)
- Utilities fees for connection and use of all types of communal infrastructure (Law on communal fees), and
- Administrative fees (Law amending the law on administrative fees)
No duty or value added tax are paid for imported raw materials, equipment or construction materials.
The height of the locally defined taxes and fees, the efficiency in their defining and issuing of permits and documentation for starting of new businesses, as well as the expansion of the activity or the scope of the existing businesses (companies) are some of the key factors of the advantageous business ambience in the City of Skopje
Taxes in the Republic of Macedonia
| Taxes | Tax rates | |
| TIDZ (TIRZ) | Outside of TIDZ (TIRZ) | |
| Profit tax | 0% for the first 10 years | 10% |
| Personal income tax | 0% for the first 10 years | 10% |
| Value added tax | 0% | 18% |
| Property tax | 0% | 0.1% – 0.2% |
| Excise tax | 0% | 5% – 62% |
Duty rates in the Republic of Macedonia
| Product | Duty rates | |
| TIDZ (TIRZ) | Outside of TIDZ (TIRZ) | |
| Raw materials | 0% | Up to 15% |
| Equipment | 0% | 5% – 20% |
