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)

Annual revenue

Annual expenses

Monthly spending cash

Monthly pension fund

Monthly investments

Tax assumptions (edit if the law changes)

Income tax %

Monthly allowance

Contributions %

Average gross salary

Minimum owner salary

Profit tax %

Dividend tax %

Pension deduction cap

MKD per EUR

Best structure: a d.o.o. paying you 38,507 MKD gross salary per month plus 84,511 MKD per month in dividends.

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

1,140,000 MKDProfit after tax paid to you: €18,537 a year, about 95,000 MKD a month, after 336,221 MKD of tax and contributions. A further 1,223,779 MKD stays in the company untaxed

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.