Corporate Income Tax
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Corporate income tax in Montenegro. Three progressive brackets: 9% up to €100k, 12% up to €1.5M, 15% over €1.5M. The tax is assessed and paid once a year with the PD return (by 31 March) — there are no monthly advance payments.
Key facts
- Progressive rates: 9 % up to €100,000, 12 % up to €1,500,000, 15 % above.
- PD return and payment once a year, by 31 March — no advance payments.
- 15 % withholding tax (30 % to tax havens) on dividends, interest, rent.
- Annual IOPPO withholding-tax report is due by the end of February.
Procedure
A legal entity is required to maintain accounting records in accordance with the Law on Accounting. Financial statements are the basis for determining the tax base.
There are NO monthly corporate-tax advance payments — Art. 41 of the Corporate Income Tax Law that prescribed them was deleted (Off. Gazette 86/09), so the tax is paid once a year with the PD return. What is paid during the year is withholding tax (Art. 29): 15% on the payout date of dividends and profit shares, interest, royalties, rent, and consulting, market-research and audit fees paid to non-residents (30% for payments to jurisdictions with a preferential tax regime). The annual withholding-tax report (IOPPO) is filed by the end of February.
At the end of the business year, financial statements are prepared: balance sheet, income statement, cash flow statement and notes to financial statements.
Profit from financial statements is adjusted for non-deductible expenses (fines, representation above limits, depreciation above prescribed rates) and transfer prices for related parties. The result is taxable profit.
The annual corporate tax return (PD form) is submitted to the Tax Administration within three months of the end of the tax period — by 31 March for the previous business year. The tax shown in the return is paid within the same deadline (Art. 40(3) of the Corporate Income Tax Law). The financial statements with the statistical annex are filed by the same date.
There are no advance payments during the year, so there is no "top-up of the difference" — the whole tax for the previous year is paid with the PD return. In case of liquidation or a status change the return is filed within three months of the end of that (shortened) period.
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Tax rates (2026)
| Annual profit | Rate |
|---|---|
| Up to €100,000 | 9% |
| €100,000 — €1,500,000 | 12% |
| Over €1,500,000 | 15% |
Withholding tax (Art. 29 of the Corporate Income Tax Law)
| Income type | Rate |
|---|---|
| Dividends and profit shares | 15% |
| Interest | 15% |
| Royalties and rent | 15% |
| Consulting, market-research, audit services (to non-residents) | 15% |
| Payments to recipients in jurisdictions with a preferential tax regime | 30% |
| Annual IOPPO report | by the end of February for the previous year |
Additional notes
Reliefs actually in force in 2026 (Corporate Income Tax Law): a newly founded legal entity in an underdeveloped municipality — 100% exemption for the first 8 years, capped at €200,000 (Art. 31; request within 30 days of CRPS entry, Art. 31a; not available for transport, shipbuilding, steel, trade and hospitality); reliefs under the Law on Incentive Measures for Research and Innovation (Art. 31c); investment in agriculture — up to €300,000 over 3 years (Art. 31d). The new-hire relief (Art. 31b) was deleted by Off. Gazette 125/23, and the contribution exemption for new hires (Art. 18c of the Contributions Law) expired on 31 December 2023.
The middle bracket of 12% was introduced to ease the transition for medium-sized enterprises.
The new Accounting Law (in force since 8 August 2025) introduced mandatory licensing for accounting-service providers and a Registry of Accounting Service Providers at the Ministry of Finance — operating without a license carries a fine of €2,000–€20,000. The business-alignment deadline under the new law was 8 February 2026 and has already passed — if your company or accounting firm hasn't aligned yet, this is overdue, not upcoming.
The new Audit Law (in force since 8 August 2025) expanded the mandatory statutory-audit requirement: it now applies not just to large legal entities but to medium-sized ones too (classified using the same thresholds as the Accounting Law), as well as to parent companies whose group qualifies as medium or large.
Required Documents
- PD form (corporate tax balance)
- Financial statements with the statistical annex (balance sheet, income statement)
- Cash flow statement
- IOPPO form (if withholding tax was paid)
Legal Basis
- Law on Corporate Income Tax (Zakon o porezu na dobit pravnih lica) — consolidated text through Off. Gazette 88/24 (Art. 29, 31–31d, 40; Art. 41 deleted)
- Law on Incentive Measures for the Development of Research and Innovation (startup reliefs, Art. 31c CIT Law)
- Law on Accounting (Zakon o računovodstvu, "Sl. list CG" 84/25, in force since 8.8.2025)
- Audit Law (Zakon o reviziji, "Sl. list CG" 84/25, in force since 8.8.2025)
- Transfer Pricing Regulation (Pravilnik o transfernim cijenama)
Competent Institutions
- Tax Administration of Montenegro
Corporate tax filing and collection
- eUprava
Electronic filing of returns
Related guides
VAT in Montenegro — rates & filing
4 rates: 21/15/7/0%, €30k threshold, monthly filing by the 15th, registration in 7 days
Company Formation in Montenegro
LLC registration step by step, CRPS/eFirma, costs €80-210
Income Tax in Montenegro
Rates 0/9/15% + municipal surtax 10-15%, €700 deduction, 10.5% contributions