Montenegro

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% to 15%. The progressive tax rates are as follows:

• For profits up to EUR 100,000, the applicable tax rate is 9%.
• For profits from EUR 100,000.01 to EUR 1,500,000, the tax is EUR 9,000 plus 12% on the profit above EUR 100,000.01.
• For profits above EUR 1,500,000.01, the tax is EUR 177,000 plus 15% on the profit above EUR 1,500,000.01.

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 withholding tax (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.