Freelance tax optimizer for North Macedonia
Enter what your freelance work earns and how much cash you need each month. The tool compares a sole trader with a single-owner d.o.o. and finds the salary and dividend split with the least tax.
Your numbers (MKD)
Tax assumptions (edit if the law changes)
Total tax and contributions come to 336,221 MKD a year (12.5% of profit), against 931,282 MKD as a sole trader. That saves 595,060 MKD (€9,676) a year.
Salary carries 28% contributions plus income tax, while dividends cost 19% in total here. So the split keeps salary at the minimum and fills the rest of your cash need with dividends.
Your pension contribution cuts income tax by 6,000 MKD a year in this structure. That is at most 10% of the deductible amount, so it lowers tax but does not pay for the contribution.
Summary: yearly net profit
| Profit before owner pay | 2,700,000 |
| Tax and contributions | -336,221 |
| Profit after tax, paid to you | 1,140,000 |
| Untaxed profit left in the company | 1,223,779 |
| Total net profit, taxed and untaxed | 2,363,779 |
| Of your cash: private pension fund | 60,000 |
| Of your cash: investments | 120,000 |
| Of your cash: left to spend | 960,000 |
The untaxed profit is not yours to spend until the company pays it out. Paying it out later would cost about 232,518 MKD in tax.
Side by side (MKD per year)
| Sole trader | d.o.o.: all profit as salary | d.o.o.: optimized splitLowest tax | |
|---|---|---|---|
| Profit before owner pay | 2,700,000 | 2,700,000 | 2,700,000 |
| Gross salary (year) | - | 2,700,000 | 462,084 |
| Social contributions | 756,000 | 756,000 | 129,384 |
| Income tax on salary / profit | 175,282 | 175,282 | 14,152 |
| Of which saved by pension deduction | 6,000 | 6,000 | 6,000 |
| Profit tax on payout | - | - | 101,414 |
| Dividend tax | - | - | 91,272 |
| Total tax and contributions | 931,282 | 931,282 | 336,221 |
| Share of profit paid as tax | 34.5% | 34.5% | 12.5% |
| Net cash after tax (year) | 1,768,718 | 1,768,718 | 1,140,000 |
| Private pension fund (year) | 60,000 | 60,000 | 60,000 |
| Investments (year) | 120,000 | 120,000 | 120,000 |
| Left to spend (month) | 132,393 | 132,393 | 80,000 |
| Left in the company | - | - | 1,223,779 |
| Tax due if that is paid out later | - | - | 232,518 |
| Total net income after all tax | 1,768,718 | 1,768,718 | 2,131,261 |
Check before you act. Rates and allowances came from public summaries that disagree in places, so the assumptions above are editable. Pension contributions are deducted from the salary or profit tax base only, up to the cap, and not from dividends. Investments get no deduction here, and tax on investment gains and on pension withdrawals is not modelled. The model assumes retained d.o.o. profit is untaxed until paid out, a 0% employer contribution, and clients abroad (no VAT charged). It ignores flat-rate (pausal) regimes, dependants, and treaty effects. Social contributions also build your pension and health cover. Confirm with an accountant or the Public Revenue Office (UJP). This is not tax advice.