Page 40 - CEE Tax Guide 2025

Montenegro

Forvis Mazars d.o.o. Beograd
11070 – Belgrade, Bulevar Milutina
Milankovica 11g, Serbia
Phone: (00381) 63 244 276
www.forvismazars.com/rs

Corporate taxes and other direct taxes 9,000+12% rate applicable to the amount over
EUR 100,000.01. For taxable profits higher than
Since FY 2022, the corporate income tax rate has 1,500,000.01, income tax will be calculated as EUR
been progressive and dependent on taxable profits 177,000+15% rate applicable to the amount over
realized (compared to the 9% flat rate that had EUR 1,500,000.01.
been previously applicable), and it applies to both Capital gains are included in the annual corporate
resident and non-resident companies. Resident profits tax return and taxed at progressive tax
companies are taxed on their worldwide income, rates. In Montenegro, losses can be carried
while non-residents are taxed only on income forward for 5 years while the carry back of losses
generated in Montenegro. The tax base is the is not permitted.
pre-tax profit modified by several increasing and In Montenegro, there are no specific thin
decreasing items.
capitalization rules, except that interest paid
For taxable profits lower than EUR 100,000, to a non-resident must be on arm’s length terms.
a 9% rate is to be applied. For taxable profits A 15% withholding tax is applicable to dividends,
in the bracket between EUR 100,000.01 and EUR interests, capital gains, royalties and other
1,500,000, income tax will be calculated as EUR intellectual property rights, fees for the lease
of movable and immovable property, consulting
Transfer pricing in Montenegro services, market research, and audit services, which
are paid to a non-resident legal entity. Montenegro
Arm’s length principle TP documentation has a wide international treaty network with over
is introduced in 2022.
40 double tax treaties.
Documentation liability Yes for large taxpayers A progressive transfer tax rate starting from 3%
(revenues over EUR
10m). Others must is levied on the transfer of immovable property
submit on request. starting from 2024. Namely, transfers of immovable
property up to EUR 150,000 are taxed at 3%,
APA No –
transfers of immovable property in the amount
Country-by-Country No – above EUR 150,000 are taxed at EUR 4,500 + 5%
liability
to be applied for the amount above EUR 150,000.01,
Master file-local file No – while transfer of property valued above EUR
(OECD BEPS 13)
applicable 500,000.01 is taxed at EUR 22,000 + 6% rate
to be applied above EUR 500,000.01.
Penalty
Property tax is levied on the ownership/use
lack of documentation Penalty between EUR
1,000—EUR 15,000. of property at rates ranging from 0.25% to 1% for
real estate that is the residence of the taxpayer.
tax shortage No Not specifically stated. Secondary real estate (not used as a residence)
Related parties 25% < Parties which can directly is taxed at rates ranging from 0.3% to 1.5%. Illegally
impact the conditions built property is taxed at a rate ranging from 0.3%
of a transaction.
and 2%, whereas undeveloped construction land
Safe harbors Safe harbor is taxed at 0.3% to 5% range.
rules in relation
to intercompany loans
and interest rates. VAT and other indirect taxes
Level of attention paid 6/10 The general rate is 21%, a reduced rate of 7%
by Tax Authority is applied on the supply of bread, milk, medications,

Central and Eastern European tax guide 2025 Forvis Mazars 40