Accountant in Montenegro

Updated on Tuesday 27th December 2022

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In Montenegro, the main principles concerning accounting are the Law on Accounting and Auditing from November 2005.

Furthermore, the International Accounting Standards regulate how financial books must be kept and the procedure for the preparation and presentation of the statements.

Our law firm in Montenegro provides counselling to investors who want to know what are the accounting regulations in this country. So, get in touch with our lawyers if you need accounting services in Montenegro.

We also provide services to those interested in immigration to Montenegro.

Payroll and HR services in Montenegro offered by our accountants

Payroll and HR management are becoming more and more difficult and resource-intensive tasks in Montenegro as a result of the complicated regulatory requirements and frequent legislative changes.

You can save your time and money by delegating the task of outsourcing to a local group of knowledgeable professionals.

This will lessen the administrative burden, but more importantly, it will improve the quality of your payroll and HR function and reduce potential risks of non-compliance and the associated fines from local statutory authorities.

Our lawyers can provide the following payroll and HR services in Montenegro:

payroll analysis and data gathering;
the management of tax benefits and incentives;
the distribution of pay slips and payment management;
support for employees' payroll inquiries via a hotline;
reporting requirements;
personal income tax reporting and management.

You can also manage the following things with our assistance:

management of HR files;
agenda for newcomers and departures;
work-related documentation;
inspections and audits;
additional advice.

You can also rely on our lawyers to learn about accounting responsibilities in Montenegro. Foreign investors are most likely welcome to start a business in Montenegro. In addition to the Montenegrin citizenship by investment program, the government also implemented rules to make conducting business easier. Benefit from the lowered business taxes and simple registration process in Montenegro. You'll soon be establishing and growing your company not just in Montenegro but also throughout Europe.

Accounting procedures for companies in Montenegro

The financial statements in Montenegro must be elaborated according to the International Accountant Standards (IAS) and the International Financial Reporting Standards (IFRS).

Depending on the size of the entity, its revenue and the number of employees, the documents elaborated by a company will vary in great deal. However, all companies follow the same pattern in the sense that they need to keep a business book containing a transaction journal.

By the 31st of December each company must submit the annual financial statement with the Tax administration in Montenegro.

Our attorneys in Montenegro can guide you in the procedure of elaborating the financial statements and can help you file the documents with the authorities.

Besides this, if you want to relocate to Montenegro, our immigration lawyers in Montenegro can provide you with practical help throughout the visa application procedure. Besides, immigration, if you are interested to get information about acquiring a Montenegrin passport, our lawyers can assist you. Individuals having at least one parent who is a citizen of Montenegro are eligible for citizenship by origin. If the kid was born overseas, they may petition for Montenegrin citizenship before turning 23. If at least one of the adoptive parents is a Montenegrin citizen, adopted children may also petition for Montenegrin citizenship. Citizenship in this country comes with a passport.

Other regulations concerning accounting in Montenegro

A company in Montenegro may appoint a specialized person in order to keep the business book and to elaborate the financial statements in written and electronic form. An accountant must be certified by a competent authority in compliance with the IFAC Education Standard (International Accounting Education Standards).

The responsibilities of the accountant in Montenegro include as well to keep track of the assets and liabilities of the company and to make sure they are in compliance with the business book. This can be done by an inventory procedure. The bookkeeping documents should be kept for at least 10 years, in original form.

Our immigration lawyers in Montenegro can give you details about tax requirements in case of non-residents and foreign residents.

Accounting rules in Montenegro

There is a list of rules that you are required to follow for accounting. Otherwise, you can also get assistance from our lawyers if you need accounting services in Montenegro.

Get in touch with our attorneys for detailed assistance. However, you can also find below a list of general accounting rules:

The calendar year and the tax year are similar;
The International Financial Reporting Standards serve as the foundation for Montenegrin accounting;
The Council for Accounting and Auditing is Montenegro's regulatory body for accounting;
Balance sheets and profit and loss accounts must be presented in accounting frameworks;
All legal businesses are required to present their financial statements on an annual basis in accordance with the Law on Accounting and Audit;
Joint stock businesses are required to produce their financial report along with the audit report under the Law on Business Organizations;
Only international businesses are exempt from filing a financial report;
The Association of Montenegrin Accountants and Auditors is the professional accounting body in this country;
A certified accountant is qualified to conduct an audit.

If you need to learn about accounting in Montenegro, you can consult with our certified public accountant in Montenegro. They can explain all the aforementioned provisions in detail.

Taxation in Montenegro

Taxation is always a very tricky part of the law to understand for most people. Many individuals face hindrances in performing their activities because they are unable to understand and comply with the tax regulations.

When it comes to taxation, it is always recommended to get the assistance of experts.

The lawyers at our law firm in Montenegro can help you understand the Montenegrin tax regulations. Besides this, please find below general information about tax rates in this country:

About 43 nations and Montenegro currently have tax treaties in effect. This means that if you are a citizen of such nations and already pay income tax in your home country, Montenegro will not tax you twice;
You will pay a fixed rate of 9% on your gross domestic income in Montenegro once you have registered for personal income tax;
Similar to individuals, Montenegro taxes corporations at a flat rate of 9% on revenue up to 100,000 Euros;
You will pay a 12% tax on the percentage of your revenue that is larger than 100,000 euros if your cooperation generates more than 100,000 euros in a year but not more than 1.5 million euros;
Finally, you will pay a flat tax of 177,000 euros plus 15% of all income exceeding €1.5 million if your company makes more than 1.5 million euros in a single year;
There is a property tax, which in most places is between 0.5% and 1% depending on the location your property is situated in. When you sell a property, there is additionally a 3% property transfer tax;
Property rental income is subject to ordinary income tax, which carries a flat rate of 9%;
Value-added tax, or VAT, is levied on the majority of products and services in Montenegro and is often mentioned in every bill or quotation you get. Montenegro has one of the lowest VAT in both Europe and the entire world, levied at just 7%.

Our lawyers in Montenegro can guide you on how to register for VAT in Montenegro and pay off other taxes.

Please contact our lawyers if you are interested to get their assistance regarding tax matters.

If you need any legal assistance regarding the sale or purchase of a property in Montenegro, our lawyers can help you.

We can also answer questions about immigration to Montenegro.