Entities operating in Montenegro are subject to progressive corporate income tax (CIT). Applicable tax rate depends on the realised 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.
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.