Corporate Tax
The basis of income tax is the taxable profit of the taxpayer.
The taxable profit of the taxpayer is determined in the manner provided by this law, by harmonizing the profit before taxation shown in the income statement, which was prepared in accordance with the regulations governing accounting, i.e. the International Accounting Standards (hereinafter: IAS), i.e. the International Financial Reporting Standards ( hereinafter: IFRS).
Corporate income tax rates are progressive.
The tax rates on the amount of taxable profit are:
1) up to EUR 100,000.00 tax is 9%;
2) from EUR 100,000.01 to EUR 1,500,000.00 tax is EUR 9,000.00 + 12% on the amount over EUR 100,000.01;
3) over 1,500,000.01 EUR tax is 177,000.00 EUR + 15% on the amount over 1,500,000.01 EUR. The basis of income tax is the taxable profit of the taxpayer.
Personal Income Tax
The payer of personal income tax is a resident or non-resident natural person who earns taxable income on the territory of the Republic of Montenegro.
• A resident natural person is considered to be a natural person who has a place of residence or a center of business and life interests on the territory of Montenegro, or resides on the territory of Montenegro for more than 183 days in a tax year. A natural person who is sent outside Montenegro to perform work for a natural or legal person resident in the Republic of Montenegro, or for an international organization, is also considered a resident.
• The subject of taxation of a resident natural person is income earned in Montenegro and outside Montenegro.
• The subject of taxation of a non-resident natural person is the income that that person receives from activities performed through a permanent place of business (business unit) in Montenegro.
• The subject of taxation of a non-resident natural person who does not have a permanent place of business (business unit) in Montenegro is the income that person receives from royalties, interest and fees based on the rent of real estate located in Montenegro.
Income tax rate:
1) which was realized on the basis of income from personal income amounts to:
- 0% on the amount of taxable income up to €700.00,
- 9% on the amount of taxable income from €700.01 to €1,000.00,
- 15% on the amount of taxable income of €1,000.01;
2) which was realized on the basis of income from self-employment amounts to:
- 9% on the amount of taxable income from €8,400.01 to €12,000.00,
- 15% on the amount of taxable income of €12,000.01;
3) which was realized on the basis of income from: property; capital; capital gains; income from sports activities; income from copyright and related rights, patents, trademarks and income of independent experts in culture; other incomes.
- 15% of the tax base
