Income taxes

Last reviewed 07 Mar 2023

Tax rate

Income tax rate

1. realized as personal income - 9% on the taxable income of EUR 700 to EUR 1,000. - 15% on taxable income above EUR 1,000.01.

Special tax rates

N/A

Tax liability

unlimited

Residents are due to pay tax on worldwide income (except where DTA restricts the right to assess tax).

limited

Non-residents are due to pay tax only on Montenegrin sourced income.

Tax assessment period

Calendar year

Income categories

Income from

1. Employement
2. Self-employment
3. Royalty
4. Real estate income
5. Capital
6. Capital gain
7. Other

Accounting

Only needed for self-employed individuals.

Loss set-offs

Only capital gains could be offset with capital losses.

Loss carry back

Not possible.

Loss carryforwards

Applicable only to losses generated by self-employment income; 5 years carry forward period.

No loss carryback possible.

Operating expenses

Expenses of the business.

Tax allowable expenses

None

Lump sum option

N/A

Motor vehicles

Same as for corporate income tax.

Social insurance

N/A

Withholding tax

Interest

15 % if interest is paid to non-resident, 5 % tax rate should apply (a lower rate may be provided in the applicable DTA).

Royalties

15 % or applicable DTA.

Dividends

15 % or applicable DTA.