(depending on the type of work and qualifications of the employed specialist)
(depending on the type of work and qualifications of the employed specialist)
The calculator allows you to calculate the approximate cost of maintenance of accounting services to support and audit the company.
CalculateAll legal entities incorporated in Montenegro must file annual financial statements. In addition, the government obliges large companies to file financial statements not only for the year but also for the quarter. The filing of financial statements is regulated by the Law on Accounting No. 052 of 17 August 2016, and financial statements are made in accordance with the International Financial Reporting Standards (IAS / IFRS).
National legislation of Montenegro obliges all legal entities to keep business books that include a transaction ledger, general ledger and subsidiary records. All business transactions must be recorded on the accrual basis.
Business books must be kept in two forms: on paper and electronically. Financial statements are made and books of accounts are kept by a person appointed by a general regulatory document adopted by the company. A person with a criminal record may not be appointed responsible person.
The balance sheet and profit and loss statement shall be published on the website of the tax authority.
Financial statements, books of accounts and their respective transaction ledgers must be kept for at least 10 years, whereas subsidiary records, quarterly financial statements and accounting documents that were used as the basis for the making of accounting records must be kept for at least 5 years.
Financial statements shall be made as of 31 December of the reporting year and provided by legal entities to the state authorities on paper and in electronic form by 31 March of the year following the reporting year.
In accordance with the Law on Auditing No. 001 of 9 January 2017, audit of financial statements is compulsory for:
Medium-sized companies include legal entities that meet at least two of the following three criteria:
Large companies include legal entities that meet at least two of the following three criteria:
Companies that meet the above criteria must provide the tax authority with financial statements along with an auditor’s opinion on paper and in electronic form by 30 June of the year following the reporting year.
Companies that do not meet at least two of the above (three) criteria are classified as micro or small legal entities and are not required to audit their financial statements.
Audit shall be carried out by an authorized auditor, who may draw other persons as assistants, provided that those persons will carry out auditing activities under supervision of the authorized auditor.
An authorized auditor may not:
There are other limitations set for auditors in the national code of ethics.
A company is considered a tax resident of Montenegro if it is incorporated in Montenegro or it is managed and controlled in Montenegro.
All companies that are tax residents of Montenegro must pay profit tax imposed on their worldwide income, whereas non-resident companies pay tax on profits accrued or received from business activity of their permanent establishment in Montenegro and income received from sources in Montenegro. The tax rate for all companies is 9%.
There are no special conditions making it possible to apply a lower tax rate in Montenegro, however there is an eight-year tax holiday for companies engaged in production in underdeveloped areas. Nonetheless, the exemption may not exceed 200 000 EUR during the eight-year period. This benefit does not apply in the following industries: fishery, metallurgy, agriculture and transport.
The tax return for the previous year may be filed in electronic form not later than on 31 March of the current year. There is no tax consolidation in Montenegro: every company must file a separate tax return.
A penalty of 0,03% per day accrues on the amount of unpaid tax obligations.
A penalty of 500 EUR to 16 500 EUR may be imposed on a legal entity if it:
A penalty of 50 EUR to 2 000 EUR may be imposed on the officer of the company responsible for any of the above breaches.
Legal entities that have control over one or several legal entities must make and file consolidated financial statements in accordance with the International Financial Reporting Standards (IAS/IFRS).
Control implies that the parent company:
Consolidated accounts shall be prepared as of 31 December of the reporting year.
A legal entity must provide consolidated financial statements by 30 September of the year following the reporting year.
As an exception, a company is not obliged to prepare consolidated financial statements if its parent company from a member state of the European Union prepares consolidated financial statements.
A parent company is also exempt from preparation of consolidated accounts if the group of companies meets the small group criteria.
Small groups are groups of legal entities that on the date of making the balance sheet of the parent company on a consolidated basis meet two of the following three criteria:
Small groups of companies, however, are not exempt from making consolidated accounts if they include public joint-stock companies, banks, financial institutions or insurance companies.
