In North Macedonia, cryptocurrencies are legally recognized as "virtual digital assets" primarily for anti-money laundering and counter-terrorism financing (AML/CFT) purposes. They are not considered legal tender or currency. While crypto assets are legal to hold, the country currently operates in a regulatory "gray zone" due to a lack of specific laws governing trading, taxation, or licensing, meaning only general laws apply. The Public Revenue Office (UPR) is the authority responsible for tax administration. Since there is no dedicated legal framework for crypto, taxation of digital assets falls under the existing general personal and corporate income tax rules. For individual investors, crypto income is generally subject to personal income tax. A flat rate of 10% applies to annual personal income exceeding MKD 1.5 million (approximately €24,400). For income below this threshold, progressive rates up to 18% may apply. Profits realized from converting crypto to fiat currency are considered taxable events, likely falling under these general income tax rules as capital gains at a 10% rate. There is no distinction made for short-term versus long-term gains, and no specific tax benefits for holding crypto over a longer period. Corporate entities engaging with crypto are subject to the standard flat 10% corporate income tax rate, with no specific provisions for digital assets. The application of the general 18% Value Added Tax (VAT) to crypto transactions is currently unclear, with clarification pending. Specific crypto activities also face an ambiguous tax landscape. Staking rewards are likely treated as ordinary income and taxed at 10%, though official guidance is lacking. Mining is generally viewed as business income, also subject to a 10% tax, and electricity costs may be deductible. However, no official guidance specifically addresses crypto mining. For decentralized finance (DeFi) activities and Non-Fungible Tokens (NFTs), there is no specific classification or guidance, meaning they would likely be treated under general income or asset rules. The taxability of crypto-to-crypto swaps remains officially unclear. Significant changes are anticipated in the near future. Draft laws on digital assets, influenced by the European Union's MiCA regulation, are expected in 2025. The new government, formed in 2024, has prioritized introducing comprehensive regulation, including licensing requirements and clearer tax guidelines for capital gains and VAT, with reforms projected for 2025-2026.
Tax Rates
| Effective individual rate | 10 |
| Capital gains tax | 10% on gains under general income tax rules, unclear distinction |
| Income tax on crypto | 10-18% under general personal income tax framework |
| Corporate tax | 10% flat rate, no crypto-specific provisions |
| VAT | Unclear, general 18% VAT may apply, pending clarification |
Activity Taxes
| Staking | Likely taxed as ordinary income at 10%, no official guidance |
| Mining | Treated as business income at 10%, electricity costs potentially deductible |
| DeFi | No guidance, likely ordinary income treatment under general rules |
| NFTs | No specific classification, general asset rules may apply |
Taxable Events
| Crypto → Fiat | Taxable conversion triggering capital gains or income tax |
| Crypto → Crypto | Unclear, no official guidance on swap taxability |
Holding Period
| Holding period benefit | None, no reduced rate for long-term holding |
Sources