TAX RATES > Montenegro Tax Rates


Montenegro Tax Rates

Montenegro Income Tax

Personal income tax rate in Montenegro is 9% (previously 12%).

New rates of tax and contributions from and on personal receivings are applicable of January 1st 2010, as following:

Tax and contributions from personal receivings
- personal income tax 9%
- contributions for pension and disability insurance 15%
- contributions for health insurance 8,5%
- contributions for unemployment insurance 0,5%

Contributions on personal receivings
- contributions for pension and disability insurance 5,5%
- contributions for health insurance 3,8%
- contributions for unemployment insurance 0,5%.

A new type of contributions, paid to the Labour Fund has been introduced, being paid by the employer at the rate 0,2%, while surtax is paid at same rates as previous years.

The personal income tax of 9% is levied on salaries and other types of personal income, including income from dividends. Certain income, however, such as income from services, is subject to tax at the rate of 15% on the tax base that is equivalent to 60% of income.

Basis - Resident individuals are taxed on worldwide income; nonresidents are taxed only on Montenegro-source income.

Residence - An individual is resident if he/she is in Montenegro for 183 days or more in a calendar year or if his/her centre of vital interests is in Montenegro.

Tax Filing status - Joint tax returns are not permitted.

Taxable income - Taxable income comprises income from employment, business and professional income, investment income (dividends, interest and royalties); and income from immovable property.

Capital gains - Capital gains are not taxable in Montenegro.

Tax Deductions and tax allowances - There are no deductions or allowances in Montenegro.

Other taxes on individuals:

Capital duty - No
Stamp duty - No
Capital acquisitions tax - No

Real property tax - Property tax is levied on the owner/user of property at rates ranging from 0.08% to 0.8%. Deductions are available.

Inheritance/estate tax - A 3% tax is levied on the inheritance of real estate. An exemption is available for the transfer of property as a gift or inheritance to children, parents or a spouse.

Net wealth/net worth tax - No

Social security - Social security contributions due by employee are levied at a rate of 24%. These include contributions for pension (15%), health (8.5%) and unemployment (0.5%).

Administration and compliance:

Montenegro Tax year - Montenegro tax year is the calendar year

Tax Filing and Tax payment - Employment income is taxed via withholding by the employer. An annual income tax return is due for other income by 30 April following the tax year end.

Individuals that receive only employment income do not file an annual return. Individuals that receive income from several sources file annual income tax, with tax paid during the year deducted from the final tax due.

Penalties - A penalty of 0.03% per day is imposed for late payment of tax.


Montenegro Corporate Tax

Montenegro corporate income tax is a flat 9%.

Residence - A company that is registered in Montenegro, or that has its management and control there, is deemed to be resident for tax purposes.

Basis - Resident companies are taxed on worldwide income; nonresidents are taxed only on Montenegro-source income.

Taxable income - Taxable income is based on accounting profit, further adjusted for tax purposes, by nondeductible expenses, nontaxable income, tax depreciation, etc.

Taxation of dividends - Dividends paid between residents are subject to withholding tax but are not included in taxable income. Dividends received from abroad are included in taxable income, but a resident taxpayer can claim a tax credit for foreign tax paid.

Capital gains - Capital gains are included as normal income and taxed at the standard rate of tax.

Losses - Tax losses may be carried forward for 5 years. The carryback of losses is not permitted.

Rate - The main rate of 9% applies to both domestic and foreign companies.

Surtax - No
Alternative minimum tax - No

Foreign tax credit - An ordinary tax credit is available for foreign income taxes paid. The credit is limited to the amount of Montenegro tax attributable to the foreign-source profits.

Participation exemption - See under "Taxation of dividends".

Holding company regime - No

Tax Incentives - A 3-year tax holiday is granted to companies registered in underdeveloped areas.

Withholding tax:

Dividends - A 9% withholding is levied on dividends paid to residents and nonresidents, unless the rate is reduced under a tax treaty.
Interest - A 9% withholding tax is levied on interest paid to nonresidents, unless the rate is reduced under a tax treaty.
Royalties - Royalties paid to nonresidents are subject to withholding tax of 9%, unless the rate is reduced under a tax treaty.

Services - Service fees paid to nonresidents for market research, advisory and audit services, as well as on income from the lease of movable and immovable property, are subject to withholding tax of 9%.

Branch remittance tax - No

Other taxes on corporations:

Capital duty - No
Payroll tax - The municipal authorities levy a surtax of up to 15% on an employee's salary.
Real property tax - Property tax is levied on the owner/user of property at rates ranging from 0.08% to 0.8%.

Social security - Social security contributions due by employer are levied at the rate of 9.8%. These include contributions for pension (5.5%), health (3.8%) and unemployment (0.5%).

Stamp duty - No
Transfer tax - A transfer tax of 3% is levied on the transfer of immovable property.

Anti-avoidance rules:

Transfer pricing - Transactions between related parties (as defined) must be at arm's length. The comparable uncontrolled price method may be used, but in the absence of any direct comparables, the taxpayer may use the cost-plus or the resale price method.

Thin capitalisation - There are no specific thin capitalisation rules, but interest paid to a nonresident (whether or not related) must be on arm's length terms.

Controlled foreign companies - No
Disclosure requirements - No

Administration and compliance:

Montenegro Tax year - Montenegro tax year is calendar year
Consolidated tax returns - Consolidated returns are not permitted; each company must file a separate tax return.

Tax Filing requirements - Monthly advance payments are due, based on the results of the previous year. Tax returns must be filed within 3 months after the year end.

Penalties - A penalty of 0.03% per day is imposed for late payment.


Montenegro vat (Value-Added Tax) Rates

There are two Value-Added Tax rates being implemented in Montenegro:
- standard tax rate of 17%, and
- reduced tax rate of 7%

Also, a zero VAT rate is applied on export transactions and on delivery of medicines and medical supplies which are funded by the Republic Health Insurance Fund. Exemptions exist for financial services, the sale of land, etc.

Taxable transactions - VAT is levied on the supply of goods and services and imports.

VAT Registration - Taxpayers with revenue in excess of EUR 18,000 must register.

Filing and VAT payment - VAT must be filed and paid monthly, by the 15th of the month for the previous month.


Go to Tax Rates Home Page





Income Tax Rate

Corporate Tax Rate

Sales Tax / VAT Rate

Last Update:  Nov 2010

(This page may show previous year's tax rates. Always check last update time)

Albania Tax RatesALBANIA
Algeria Tax RatesALGERIA
Andorra Tax RatesANDORRA
Angola Tax RatesANGOLA
Anguilla Tax RatesANGUILLA
Antigua & Barbuda Tax RatesANTIGUA & BARBUDA
Argentina Tax RatesARGENTINA
Aruba Tax RatesARUBA
Australia Tax RatesAUSTRALIA
Austria Tax RatesAUSTRIA
Azerbaijan Tax RatesAZERBAIJAN
Bahamas Tax RatesBAHAMAS
Bahrain Tax RatesBAHRAIN
Bangladesh Tax RatesBANGLADESH
Barbados Tax RatesBARBADOS
Belarus Tax RatesBELARUS
Belgium Tax RatesBELGIUM
Belize Tax RatesBELIZE
Benin Tax RatesBENIN
Bermuda Tax RatesBERMUDA
Bosnia & Herzegovina Tax RatesBOSNIA & HERZEGOVINA
Botswana Tax RatesBOTSWANA
Brazil Tax RatesBRAZIL
British Virgin Islands Tax RatesBRITISH VIRGIN ISLANDS
Brunei Tax RatesBRUNEI
Bulgaria Tax RatesBULGARIA
Burkina Faso Tax RatesBURKINA FASO
Burma Tax RatesBURMA
Burundi Tax RatesBURUNDI
Cambodia Tax RatesCAMBODIA
Cameroon Tax RatesCAMEROON
Canada Tax RatesCANADA
Cape Verde Tax RatesCAPE VERDE
Cayman Islands Tax RatesCAYMAN ISLANDS
Central African Republic Tax RatesCENTRAL AFRICAN REP.
Chad Tax RatesCHAD
Chile Tax RatesCHILE
China Tax RatesCHINA
Colombia Tax RatesCOLOMBIA
Comoros Tax RatesCOMOROS
Democratic Republic of Congo Tax RatesCONGO, DEM. REPUBLIC
Republic of Congo Tax RatesCONGO, REPUBLIC OF
Cook Islands Tax RatesCOOK ISLANDS
Costa Rica Tax RatesCOSTA RICA
Cote d'Ivoire Tax Rates Ivory CoastCOTE D'IVOIRE
Croatia Tax RatesCROATIA
Cuba Tax RatesCUBA
Curaçao Tax Rates - Curacao Tax RatesCURAÇAO
Cyprus Tax RatesCYPRUS
Czech Republic Tax RatesCZECH REPUBLIC
Denmark Tax RatesDENMARK
Djibouti Tax RatesDJIBOUTI
Dominica Tax RatesDOMINICA
Dominican Republic Tax RatesDOMINICAN REPUBLIC
Ecuador Tax RatesECUADOR
Egypt Tax RatesEGYPT
El Salvador Tax RatesEL SALVADOR
Equatorial Guinea Tax RatesEQUATORIAL GUINEA
Estonia Tax RatesESTONIA
Fiji Tax RatesFIJI
Finland Tax RatesFINLAND
France Tax RatesFRANCE
French Polynesia Tax RatesFRENCH POLYNESIA
Gambia Tax RatesGAMBIA
Georgia Tax RatesGEORGIA
Germany Tax RatesGERMANY
Ghana Tax RatesGHANA
Gibraltar Tax RatesGIBRALTAR
Greece Tax RatesGREECE
Grenada Tax RatesGRENADA
Guatemala Tax RatesGUATEMALA
Guernsey Tax RatesGUERNSEY
Guyana Tax RatesGUYANA
Honduras Tax RatesHONDURAS
Hong Kong Tax RatesHONG KONG
Hungary Tax RatesHUNGARY
Iceland Tax RatesICELAND
India Tax RatesINDIA
Indonesia Tax RatesINDONESIA
Iran Tax RatesIRAN
Ireland Tax RatesIRELAND
Isle of Man Tax RatesISLE OF MAN
Israel Tax RatesISRAEL
Italy Tax RatesITALY
Ivory Coast Tax RatesIVORY COAST
Jamaica Tax RatesJAMAICA
Japan Tax RatesJAPAN
Jersey Tax RatesJERSEY
Jordan Tax RatesJORDAN
Kazakhstan Tax RatesKAZAKHSTAN
Kenya Tax RatesKENYA
Kuwait Tax RatesKUWAIT
Latvia Tax RatesLATVIA
Lebanon Tax RatesLEBANON
Lithuania Tax RatesLITHUANIA
Luxembourg Tax RatesLUXEMBOURG
Macau Tax RatesMACAU
Madagascar Tax RatesMADAGASCAR
Madeira Tax RatesMADEIRA
Malawi Tax RatesMALAWI
Malaysia Tax RatesMALAYSIA
Maldives Tax RatesMALDIVES
Malta Tax RatesMALTA
Mauritius Tax RatesMAURITIUS
Mexico Tax RatesMEXICO
Moldova Tax RatesMOLDOVA
Monaco Tax RatesMONACO
Montenegro Tax RatesMONTENEGRO
Morocco Tax RatesMOROCCO
Mozambique Tax RatesMOZAMBIQUE
Myanmar Tax RatesMYANMAR
Namibia Tax RatesNAMIBIA
Nepal Tax RatesNEPAL
Netherlands Tax RatesNETHERLANDS
Netherlands Antilles Tax RatesNETHERLANDS ANTILLES
New Zealand Tax RatesNEW ZEALAND
Nicaragua Tax RatesNICARAGUA
Nigeria Tax RatesNIGERIA
Norway Tax RatesNORWAY
Oman Tax RatesOMAN
Pakistan Tax RatesPAKISTAN
Palestine Tax RatesPALESTINE
Panama Tax RatesPANAMA
Papua New Guinea Tax RatesPAPUA NEW GUINEA
Paraguay Tax RatesPARAGUAY
Peru Tax RatesPERU
Philippines Tax RatesPHILIPPINES
Poland Tax RatesPOLAND
Portugal Tax RatesPORTUGAL
Puerto Rico Tax RatesPUERTO RICO
Qatar Tax RatesQATAR
Romania Tax RatesROMANIA
Russia Tax RatesRUSSIA
Rwanda Tax RatesRWANDA
Saudi Arabia Tax RatesSAUDI ARABIA
Senegal Tax RatesSENEGAL
Serbia Tax RatesSERBIA
Sierra Leone Tax RatesSIERRA LEONE
Singapore Tax RatesSINGAPORE
Slovakia Tax RatesSLOVAKIA
Slovenia Tax RatesSLOVENIA
South Africa Tax RatesSOUTH AFRICA
South Korea Tax RatesSOUTH KOREA
Spain Tax RatesSPAIN
Sri Lanka Tax RatesSRI LANKA
Swaziland Tax RatesSWAZILAND
Sweden Tax RatesSWEDEN
Switzerland Tax RatesSWITZERLAND
Syria Tax RatesSYRIA
Taiwan Tax RatesTAIWAN
Tanzania Tax RatesTANZANIA
Thailand Tax RatesTHAILAND
Tunisia Tax RatesTUNISIA
Turkey Tax RatesTURKEY
Turks and Caicos Tax RatesTURKS AND CAICOS
Uganda Tax RatesUGANDA
Ukraine Tax RatesUKRAINE
United Arab Emirates Tax RatesUNITED ARAB EMIRATES
UK Tax Rates United KingdomUNITED KINGDOM
US Tax Rates United StatesUNITED STATES
Uruguay Tax RatesURUGUAY
Uzbekistan Tax RatesUZBEKISTAN
Vanuatu Tax RatesVANUATU
Venezuela Tax RatesVENEZUELA
Vietnam Tax RatesVIETNAM
West Bank Tax RatesWEST BANK
Yemen Tax RatesYEMEN
Zambia Tax RatesZAMBIA
Zimbabwe Tax RatesZIMBABWE

Tax Rates
Tax Rates
Global Average Tax Rates
Historical Tax Rates
Tax News
Tax Videos
Tax Articles
IRS Tax Forms

© 2009-2012
2011 - 2012 Tax Rate Guide and Tax Help Website