Company
Lump-Sum Taxation for Entrepreneurs
Guide to lump-sum taxation for entrepreneurs in Montenegro. Fixed monthly amount, €18,000 turnover threshold, ZPO form, approval process.
15 days for approval
Fixed monthly amount (depends on activity)
4 steps
Procedure
The entrepreneur must have annual turnover up to €18,000 and perform an activity eligible for lump-sum taxation. Not available for all activities (e.g., not for high-turnover freelance professions).
Entrepreneur
The €18,000 threshold refers to total annual turnover.
Required Documents
- ZPO form (application for lump-sum taxation)
- Entrepreneur registration certificate
- Tax Authority decision on lump-sum amount
Legal Basis
Competent Institutions
- Tax Administration of Montenegro
Lump-sum approval, amount determination
Lump-sum vs regular taxation
| Criterion | Lump-sum | Regular |
|---|---|---|
| Turnover threshold | Up to €18,000/yr | No limit |
| Tax calculation | Fixed monthly amount | 9-15% on taxable income |
| Bookkeeping | Income book only | Full accounting |
| Expense deductions | No | Yes |
Additional notes
If turnover exceeds €18,000 during the year, the entrepreneur loses lump-sum status and switches to regular taxation.
Lump-sum taxation is suitable for small entrepreneurs with low operating costs.
Contributions (pension 10% + unemployment 0.5%) are paid in addition to the lump-sum tax.