Sole proprietorships in Montenegro are individuals who do business on the local markets for the purpose of making profits. These types of legal entities are regulated by the Company Act in Montenegro.
In this article, our company formation agents in Montenegro present a few aspects related to the taxation of sole traders in Montenegro.
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The Law on Personal Income Tax in Montenegro
According to the Law on Personal Income Tax in Montenegro, the revenues which derive from self-employment activities in this country are regulated as follows:
• The profits from self-employment activities are regarded as profits deriving from economic activities, freelance professions and intellectual and professional services. These activities also include other self-employed services which do not represent the main activity of the natural person, however, which are effectuated occasionally to generate profits, unless they are taxed in another way which is specified by the above-mentioned law. Our Montenegro company formation consultants can offer more details on this matter. We can also help entrepreneurs who want to open a company in Montenegro;
• The profits from self-employment activities are also regarded as revenues from agriculture and forestry, if the individual who is generating them is a taxpayer of the VAT;
• The regulations provided by the accounting legislation apply to the individuals who are generating profits from a self-employment activity related to keeping business records and preparing financial statements, unless otherwise stated by this law.
We are at your service if you want to move here as a sole trader and apply for Montenegro residency.
Taxation on personal income in Montenegro
The taxation for persons’ income in this country is calculated based on their residence status.
Residents of Montenegro are taxed on their worldwide income which derives from any source. Our company registration advisors in Montenegro can offer more details on these taxes.
Non-residents are taxed on their income in connection with a fixed base or a permanent establishment in the country, as well as royalties, interest and rental income from immovable property here.
If you would like to learn more about the sole trader taxes in Montenegro, or for assistance to open a Montenegro company, we kindly invite you to speak to our friendly staff.