Montenegro

Overview

Last reviewed - 29 July 2020

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.

Quick rates and dates

Corporate income tax (CIT) rates
Headline CIT rate (%)

9

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 (%)

11

Personal income tax (PIT) due dates
PIT return due date

30 April

PIT final payment due date

30 April

PIT estimated payment due dates

NP

Value-added tax (VAT) rates
Standard VAT rate (%)

21

Withholding tax (WHT) rates
WHT rates (%) (Div/Int/Roy)

Resident: 9 / NA / NA;

Non-resident: 9 / 9 / 9

Capital gains tax (CGT) rates
Corporate capital gains tax rate (%)

Capital gains are subject to the normal CPT rate.

Individual capital gains tax rate (%)

Capital gains are subject to the normal PIT rate.

Net wealth/worth tax rates
Headline net wealth/worth tax rate (%)

NA

Inheritance and gift tax rates
Inheritance tax rate (%)

3

Gift tax rate (%)

NP

NA stands for Not Applicable (i.e. the territory does not have the indicated tax or requirement)

NP stands for Not Provided (i.e. the information is not currently provided in this chart)

All information in this chart is up to date as of the 'Last reviewed' date on the corresponding territory Overview page. This chart has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this chart, and, to the extent permitted by law, PwC does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.