This article explains how employees can request reimbursement for business‑related expenses in North Macedonia, including travel, mileage, per diems, documentation requirements, and tax treatment. Proper approval and documentation are essential to ensure reimbursements remain non‑taxable.
1. Travel & Mileage (Private Vehicle Use)
Mileage Reimbursement
North Macedonia does not have a statutory per‑kilometre mileage reimbursement rate.
Employers typically use one of the following compliant approaches:
Reimbursement of actual fuel costs, supported by receipts, or
A company‑defined per‑km rate, which is generally treated as taxable income unless the employee can fully document the actual business costs incurred.
Mileage Log Requirement
When a personal vehicle is used, employees must submit a mileage log including:
Date of travel
Start and end location
Odometer readings (start and end)
Total kilometres travelled
Business purpose
Mileage must reflect actual business travel only.
Daily commuting (home ↔ regular workplace) is not reimbursable tax‑free.
2. Parking, Tolls & Road Charges
Parking fees, tolls, and similar road charges must be claimed as separate expenses
Original receipts are required
These costs are not included in any mileage reimbursement
Expenses without receipts may be rejected or treated as taxable salary.
3. Business Travel Rules & Limits
There are no statutory caps on total travel days or amounts
All travel must be:
Business‑related
Necessary and reasonable
Approved in writing before travel
Important
While there are no caps on travel costs, per diem allowances are subject to government‑defined maximums (see Section 7).
4. Transportation & Accommodation
All transportation and accommodation expenses must be supported by original tickets or invoices.
Transportation
Bus, train, flight, taxi: original ticket or receipt required
Rental car:
Rental agreement
Fuel receipts
Parking/toll receipts
Only the business‑use portion of rental or fuel costs is reimbursable tax‑free.
Accommodation
Hotel invoice required
Must clearly relate to business travel dates and purpose
5. Invoicing & Documentation Requirements
For an expense to be reimbursed tax‑free, employees must submit an original invoice or fiscal receipt (“fiskalna smetka”) including:
Vendor name
Vendor tax ID (ЕМБС / ЕДБ)
Date
Description of goods or services
Amount and VAT
Business purpose
For travel expenses, the claim must also include:
Destination
Date(s) of travel
Reason for travel
Travel approval form (if required)
Every expense must have a fiscal receipt to be treated as non‑taxable.
6. Common Non‑Taxable Reimbursable Expenses
With proper documentation and approval, the following are generally non‑taxable:
Transportation (bus, train, flight, taxi, rental car)
Fuel for business use (with receipts)
Accommodation (hotel invoice)
Business meals with clients
Parking and tolls
Work‑related supplies and materials
Visa fees and travel insurance
Per diems within official limits
7. Per Diems (Daily Allowances)
Per diems are tax‑free only up to government‑defined limits, as set by the Government Decision on Official Per Diem Amounts.
Official Per Diem Rates (2025)
Domestic Travel
1,000 MKD per day (maximum tax‑free amount)
International Travel (examples):
Serbia: 35 EUR/day
EU countries: 50 EUR/day
United States: 70 EUR/day
Amounts above these limits are treated as taxable income.
Important Rules
Per diems cover meals and incidental expenses
Per diems cannot be combined with meal receipts for the same day (no double‑claiming)
8. Business Entertainment & Gifts
Business Entertainment
Reimbursable when:
Clearly business‑related
Reasonable in amount
Supported by receipts
Documentation must include:
Names of participants
Business purpose
Receipt or invoice
Lavish or personal‑benefit expenses may be treated as taxable income.
Gifts
Must be reasonable and business‑related
High‑value or personal gifts may be taxable or rejected
9. Non‑Reimbursable or Taxable Personal Expenses
The following are generally taxable benefits and not reimbursable tax‑free:
Gym memberships
Yoga or fitness classes
Swimming or wellness services
Therapy or personal medical expenses
Exceptions may apply only when:
Required strictly for work, or
Mandated by health and safety regulations (rare)
10. VAT & Recordkeeping
VAT
Standard VAT rate: 18%
Reduced VAT rate: 5% for certain goods and services
VAT treatment follows standard North Macedonian VAT rules.
Record Retention
All expense documentation must be retained for at least 5 years
Payroll and Finance verify:
Mileage and per‑diem compliance
Documentation completeness
If requirements are not met, reimbursements may be treated as taxable salary.
11. Submission Deadlines & Compliance
Expenses should be submitted within 30 days of travel or purchase (common employer practice)
Late or incomplete submissions may be:
Rejected, or
Reclassified as taxable income