Montenegro: Amendments to individual income tax and labor laws effective 1 January 2022

Amendments to the individual income tax and labor laws have been enacted.

Amendments to the individual income tax and labor laws have been enacted.

Amendments to the individual income tax and labor laws have been enacted following publication in the official gazette (145/2021 and 146/2021 dated 31 December 2021) and are effective as of 1 January 2022.

Individual (personal) income tax

Progressive taxation of salary and income earned by entrepreneurs is introduced. A proportional 15% tax is introduced to other types of income.

Salary is taxed in the following manner:

  • Salaries up to €700 (gross) are exempt from tax
  • Salaries ranging from €700 up to €1,000 inclusive (gross) are subject to 9% tax
  • Salaries exceeding €1,000 (gross) are subject to 15% tax

Labor law

Minimum net salary is increased from €250 to €450.

A new provision is introduced prescribing that employer is obliged to increase employees net salary for abolishment or decrease in individual income tax or social security contributions borne by employee.

Read a January 2022 report prepared by the KPMG member firm in Montenegro


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