Montenegro, a country located in Southeast Europe, is bordered by the Adriatic Sea to the southwest, Croatia to the west, Bosnia and Herzegovina to the northwest, Serbia to the northeast, Albania to the southeast, and Kosovo to the east. Montenegro is divided into 23 municipalities, with Podgorica as the capital. The official language is Montenegrin, and the currency is the euro (EUR).
The use of the name Montenegro began in the 15th century when the Crnojevic dynasty began to rule the Serbian principality of Zeta. Over the subsequent centuries, Montenegro was able to maintain its independence from the Ottoman Empire. From the 16th to 19th centuries, Montenegro became a theocracy ruled by a series of bishop princes. In 1852, it was transformed into a secular principality. After World War I, Montenegro was absorbed by the Kingdom of Serbs, Croats, and Slovenes, which became the Kingdom of Yugoslavia in 1929. At the conclusion of World War II, it became a constituent republic of the Socialist Federal Republic of Yugoslavia. When Yugoslavia dissolved in 1992, Montenegro federated with Serbia. This federation ended after an election, and Montenegro formally declared its independence on 3 June 2006.
The dissolution of the political union with Serbia in 2006 led to separate membership in several international financial institutions, such as the European Bank for Reconstruction and Development. On 18 January 2007, Montenegro joined the World Bank and International Monetary Fund (IMF). Montenegro signed a Stabilization and Association agreement with the European Union (EU) in October 2007. On 17 December 2011, Montenegro joined the World Trade Organization (WTO) and on 5 June 2017 became a member of the North Atlantic Treaty Organization (NATO). Montenegro is an official EU candidate country.
Montenegro has privatised its large aluminium complex, which is its dominant industry, as well as most of its financial sector. It has also begun to attract foreign direct investment in the tourism sector.
PwC Montenegro provides a full range of assurance, tax, business advisory, and legal services to local clients and international corporations present in Montenegro. We support clients with the local knowledge and skills of our people and with access to a broad range of other professionals across the PwC global network of firms.
Our teams have skills and experience in all areas of taxation, including local and international corporate taxation, indirect taxation, customs and trade regulations, expatriate taxation, human resource management, and accounting services.
|Corporate income tax (CIT) rates|
|Headline CIT rate (%)||
Applicable tax rate depends on the realized profit of taxpayers and tax rate varies from 9% -15%. Progressive tax rate are as follows:
On the profit up to EUR 100,000, the tax rate shall be 9% fixed;
On the profit from EUR 100,000.01 to EUR 1,500,000, the tax shall be paid in the amount of EUR 9,000 fixed + 12% on the profit above EUR 100,000.01;
On the profit above EUR 1,500,000, the tax shall be paid in the amount of EUR 177,000 fixed + 15% on the profit above EUR 1,500,000.01.
|Corporate income tax (CIT) due dates|
|CIT return due date||
End of March
|CIT final payment due date||
End of March
|CIT estimated payment due dates||
Paid in six annual instalments at the taxpayer’s request or tax is paid by the end of March.
|Personal income tax (PIT) rates|
|Headline PIT rate (%)||
As of 1st January 2022, progressive taxation of salary and income earned by entrepreneurs is introduced. Proportional 15% tax rate is introduced to other types of income.
Salary is taxed in the following manner:
Salaries up to EUR 700 (gross) are exempt from tax;
Salaries ranging from EUR 701 up to EUR 1,000 (gross) are subject to 9% tax;
Salaries from EUR 1001 (gross) are subject to 15% tax.
|Personal income tax (PIT) due dates|
|PIT return due date||
|PIT final payment due date||
|PIT estimated payment due dates||
|Value-added tax (VAT) rates|
|Standard VAT rate (%)||
|Withholding tax (WHT) rates|
|WHT rates (%) (Dividends/Interest/Royalties)||
Resident: 15 / NA / NA;
Non-resident: 15 / 15 / 15
|Capital gains tax (CGT) rates|
|Headline corporate capital gains tax rate (%)||
Capital gains are subject to the normal CIT rate.
|Headline individual capital gains tax rate (%)||
|Net wealth/worth tax rates|
|Headline net wealth/worth tax rate (%)||
|Inheritance and gift tax rates|
|Headline inheritance tax rate (%)||
|Headline gift tax rate (%)||