Lump-Sum Entrepreneur Taxation (Paušalno Oporezivanje) in Montenegro
Independent freelancers, craftsmen, and small service providers can register as sole entrepreneurs (preduzetnik) under the Paušal regime:
- Turnover Eligibility Ceiling: Gross annual turnover cannot exceed €18,000.00 (and the business cannot be registered for PDV).
- Fixed Monthly Determinations: The Revenue and Customs Administration issues an annual administrative decision (Rješenje) fixing:
- Monthly Personal Income Tax: Typically between €30 and €70/month based on municipal classification.
- Mandatory Social Security (Fond PIO): Calculated on the statutory minimum base, typically approx. €130/month.
- Minimal Bookkeeping: No requirement to maintain complex balance sheets; sole proprietors only keep a simple Book of Realized Revenue (Knjiga o ostvarenom prometu - KOP).
Statutory Regulatory Framework: Compliant with the Law on Personal Income Tax (Evropa Sad), Law on Corporate Profit Tax, Labor Law of Montenegro, and regulatory decrees issued by the Revenue and Customs Administration (UPC) and REGAGEN.