Montenegro

Social security contributions (SSC)

The mandatory SSC in Montenegro payable on salaries include:

• pension and disability insurance and
• unemployment insurance.

For 2024, pension and disability insurance contributions are capped at EUR 68,765 annually.

The entire pension and disability insurance, set at a rate of 10%, is borne by the employee. Costs of unemployment insurance are borne by both the employee at a rate of 0.5% and by the employer at a rate of 0.5%.

Employers are liable to calculate and withhold mandatory SSC at the payment of employees' salaries.

SSC are also levied on other types of personal income in accordance with the SSC Law.

Consumption taxes

Value-added tax (VAT)

The main principles of the Montenegrin VAT align with the European Union (EU) Sixth Directive guidelines. The subject of VAT includes the supply of goods and services for consideration, as well as the import of goods into Montenegro. The general VAT rate is 21%. Certain supplies of goods and services, as well as the import of goods, are subject to reduced VAT rates.

See the Other taxes section in the Corporate tax summary for more information.