Corporate Tax step by step: How it works and who pays it?

Let’s Simplify Things. Corporate income tax is what the state asks from you when you earn more than you spend. You work all year, put in the effort, chase clients, balance expenses and revenues, and in the end – the state knocks on your door and says: “It’s time to share that profit.”
This is not a choice, but an obligation for every entrepreneur.

WHAT IS CORPORATE INCOME TAX?

Corporate income tax is the portion of your profit that goes to the state, because it also creates the conditions for your business – from infrastructure and legislation to institutions.
In short, the state takes its slice of the pie.

HOW MUCH WILL YOU PAY?

In Montenegro, the corporate income tax system is progressive:

• up to €100,000 – tax is 9%
• from €100,000.01 to €1,500,000 – you pay €9,000 + 12%
• over €1,500,000.01 – you pay €177,000 + 15%

In other words, the more you earn, the greater the percentage of your profit you share with the state.

HOW TO MAKE SURE CORPORATE TAX DOESN’T “HURT”?

If numbers, laws, and paperwork drain your energy, the best solution is to hire experts. Well-organized accounting and timely advice can significantly optimize your tax burden – fully in line with the law.

That’s exactly why professionals like our team at Perfectum exist. Our job is to know all the tax reliefs and cost-optimization methods so that you pay exactly what you have to – not a cent more.

Your job is to build and grow your business.
Our job is to ensure all tax obligations are handled properly – while you sleep peacefully.