Entities operating in Montenegro are subject to progressive corporate income tax (CIT). The applicable tax rate depends on the realised profit of taxpayers, and the tax rate varies from 9% to15%. The progressive tax rates are as follows:
- On the profit up to 100,000 euros (EUR), the tax rate shall be 9%.
- On the profit above EUR 100,000 to EUR 1,500,000, the tax shall be paid in the amount of EUR 9,000 plus 12% on the profit above EUR 100,000.
- On the profit above EUR 1,500,000, the tax shall be paid in the amount of EUR 177,000 plus 15% on the profit above EUR 1,500,000.
Resident taxpayers are taxed on their worldwide profit. Non-resident taxpayers are taxed on their Montenegrin-sourced income or income attributed to their Montenegrin permanent establishment (PE). Non-residents are also subject to WHT on income sourced in Montenegro (see the Withholding taxes section for more information).
Local income taxes
No local (i.e. municipality) corporate income taxes exist in Montenegro.