Accounting policy for non-profitable organizations

Personal income tax for project activities

Are the civil organizations obliged to calculate and pay down payment for a personal income tax during realizations of seminars, trainings and similar activities as part of their project activities?

The personal income tax is calculated for every separate obligation towards physical entities, and is paid at the moment of payment of the same.

The obligation comes into effect even in a case when instead of direct payment to certain physical entity it will be done by certain payment in his name by any legal entity. Thus, the obligation for calculation and payment of the personal income tax doesn’t stop for example in a case if we pay to a certain travel agency, for example a plane ticket for the person NN.

A taxpayer is the person recipient of the means, the payer for paying the tax is the payer of the means. In practice it would look like this. The payer of personal income tax at certain agreed compensation is the person who should accept the proper compensation, but the civil organization is the one which is obliged to make the payment of personal income tax on a proper budget account.

When we talk about this problem separately, we should pay attention to the fact whether in the civil organization there are registered (in the Employment bureau) workers or not. In a case when there aren’t registered workers in the civil organization, then we apply the rule for calculation and payment of personal income tax for every separate payment, so there’s obligation for its payment during the realization of seminars and similar project activities.

If in the civil organization there’s at least one employed worker, in that case it doesn’t have an obligation for calculation and payment of personal income tax during the realization of the mentioned activities, i.e. the obligation for calculation and payment of the personal income tax will work only in a case when the users of the project activities are physical entities, and it won’t work if those physical entities have come as representatives of certain organizations.

In other words, if at your seminars, trainings etc. you call the person NN, you have an obligation to calculate and pay the personal income tax, but if at that same activity the person NN comes, but now as a representative of the called organization AB, in that case you don’t have an obligation to calculate and pay the personal income tax.

 

News in the calculation and payment of the down payments of the personal income tax of personal incomes

Starting from 1st January 2005 there are changes in the Manual for the way of calculation and payment of the down payments of the personal income tax of personal incomes.

The new rates and articles look like this: 

    By monthly tax basis                                       By rate
 
    To 30,000 denars                                                      15%
 
    From 30,000 to 60,000 denars           4,500+18% on the income part
                                                                          of 30,000 to 60,000
 
    Over 60,000 denars                            9,900+24% on the income part
                                                                          over 60,000 denars
 


    By monthly tax basis                                       By rate                                      
 
    To 25,000 denars                                               17.647059%
 
    From 25,000 to 50,100 denars        4,500+21.951219% on the income part
                                                                     of 25,000 to 50,100 denars
 
    Over 50,100 denars                         9,900+31.578947% on the income part 
                                                                       over 50,100 denars
 

Aleksandar Buzarovski
Manager of the administrative-financial department at the MCIC