Initiative For Amendment Of The Tax Treatment On Covid-19 Vaccination Expenses


As the immunization of the population has started on a larger scale, companies have been undergoing processes for immunization of their employees. Having in mind that the vaccination in North Macedonia is moving at a slower pace, many companies have resorted to organizing immunization for their employees in our neighboring countries, predominantly in the Republic of Serbia.
It has come to our attention that the expenses companies incur for organizing vaccination of their employees are subject to both corporate and personal income tax. Therefore, upon request of our members Kromberg & Schubert, we would like to ask our members for feedback on launching an initiative for amendment of the tax treatment on Covid-19 vaccination expenses. 

The letter of initiative can be found HERE. 

Please express your company’s feedback on the initiative by email to:


According to the rules contained in Article 9 of the Law on corporate income tax (Official   Gazette   no.   112/14,    129/15, 23/16, 190/16, 248/18, 232/19,275/19 and 290/20), as well as the manner of their application by the authorized bodies in practice:

Deductible expenses for the purposes of the corporate income tax, as expenses needed for activity performance, represent: Expenses for supply of disinfection materials, masks for protection of the employees, protective visors, plastic screens, separate stickers and marks for providing the appropriate distance between clients, etc.

Non-deductible expenses represent: The expenses associated with COVID-ig vaccination of employees — for an example organized transport expenses for vaccination, travel insurance, food and etc.

Additionally, under the Law on Personal Income Tax (Official Gazette no.241/18, 275/19, 290/20 and 85/21) the transport expenses for vaccination against COVID-i9 are subject to personal income tax.

Therefore, from the described treatment of the vaccination expenses, the companies are exposed to increased expenses for:

-The expenses associated with COVID-19 vaccination of employees — for an example organized transport expenses for vaccination, travel insurance, food and etc.

-The expenses for increased duties for corporate income tax, and

-The expenses for personal income tax.

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