Corporate Income Tax
Corporate income tax in Montenegro. Three progressive brackets: 9% up to €100k, 12% up to €1.5M, 15% over €1.5M. Annual and monthly calculations.
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.
Tax rates (2026)
| Annual profit | Rate |
|---|---|
| Up to €100,000 | 9% |
| €100,000 — €1,500,000 | 12% |
| Over €1,500,000 | 15% |
Withholding tax for non-residents
| Income type | Rate |
|---|---|
| Dividends | 9% |
| Interest | 9% |
| Royalties | 9% |
| Services | 9% |
Additional notes
Incentives: tax base reduction for new employees, accelerated depreciation for investments, free zone benefits.
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 (balance sheet, income statement)
- Cash flow statement
- Advance payment order
Legal Basis
- Law on Corporate Income Tax (Zakon o porezu na dobit pravnih lica)
- 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