The Montenegrin government has passed a couple of new business and tax regulations on 31.12.2021, which were put in force mostly as of 01.01.2022. See here a selection of most relevant changes:
Profit tax (Corporate Income Tax - CIT) is changed from 9% flat rate to a progressive rate, which is scaled as follows: the first portion of profit up to 100.000€ is taxed at 9%, the portion from 100.001 – 1.500.000€ taxed at 12%, all profits above 1.500.001€ are taxed at 15% rate.
Personal income tax (PIT) for personal income deriving from a salary is changed from 9% flat rate to a progressive rate, which is scaled as follows: the first portion of gross income up to 700€ monthly is tax free, the portion from 700€ up to 1.000€ gross monthly is taxed at 9%, all higher part of the salary above 1.000€ gross monthly is taxed at 15% rate. The same taxation is applicable for the personal income deriving from independent professions (such as lawyers, notaries and entrepreneurs).
Personal income tax (PIT) for personal income deriving fromrentals, deed contracts, dividends, royalties and dividends is changed from 9% flat rate to15% flat rate.
Withholding tax (WHT) is changed from 9% flat rate to 15% flat rate, for dividends payments, interest payments and for example for consulting service paymentspaid to non-resident entities (if not stated differently by relevant agreement on avoidance of double-taxation).
The legal minimum wage for employees in a full-time job (40 hours per week) is increased from 250€ to 450€ net per month.
Social contributions for health insurance, which was mandatory to be paid by the employer on behalf of its employees, is cancelled, and this effect should be remitted to the employee as an increase of the net salary.