- Overview: Montenegro
- Global HR Compliance
- Global PEO and payroll
- Visa, work permit & immigration support
- Expand without a company set up
- Contractor vs. employee: which is better?
Global PEO and Payroll in Montenegro
Getting your business up-and-running in Montenegro can be challenging, especially if you do not speak the native language. Establishing your own business entity in Montenegro is an option to be considered as you expand abroad. But before you invest valuable resources in setting up business in Montenegro, you should be fully aware of the risks involved.
Acumen’s Global PEO and Payroll solution was designed especially for companies like yours, to smooth the way for quick, easy and risk-free business operations in Montenegro, without having to establish a legal business entity.
Acumen International – Your Professional Employer Organization in Montenegro
Navigating the Montenegrian legal system and adhering to regulations governing employment and taxation can be challenging for businesses, especially if you are not a native Montenegrian speaker. Partnering with Acumen International as a global Professional Employer organization (PEO) provides you with the local knowledge and support you need to conduct business in Montenegro without concern for legal and compliance risks.
Whether you represent international client companies or you are taking your own business operations abroad, Acumen International’s Global PEO and payroll service allows you to hire and payroll local and expat employees in Montenegro. With Acumen in your corner, you can quickly and easily onboard and compensate your employees without risk of legal repercussions.
International Global Payroll and Taxation in Montenegro
Employment related taxes
Taxation of individuals’ income in Montenegro is based on their residence status. Residents are subject to tax on their worldwide income from any source. Non-residents are taxed on income related to a fixed base/permanent establishment (PE) in Montenegro and royalties, interest, and rental income from immovable property in Montenegro.
Social security contributions for pension and disability insurance, health insurance, and unemployment insurance are calculated and withheld by an employer from the salary paid to an employee. Unlike the other two types of social security contributions, pension and disability insurance contributions are subject to a specific annual cap.
The following benefits are not included in taxable income in Montenegro:
- Travel allowances up to the amount of actual expenses (includes accommodation, food expenses and commuting costs)
- In case of a business trip abroad, travel allowances up to the limit set for state employees
- Allowances for the use of a private car for business purposes
- Pension severance payment up to EUR1,000
- Death and funeral costs compensation up to EUR1,500
- Fees paid for training and seminars of interest to the company’s business etc.
Payroll Cycle in Montenegro
Salary and salary compensation shall be paid within the deadlines determined by the collective agreement and the employment contract, and at least once a month.
Non-payroll taxes in Montenegro
In principle, the VAT base is comprised of consideration (in cash, goods, or services) received for supplies, including taxes, except VAT (e.g. customs, excise duty), and direct costs (e.g. commissions, cost of packing, transport). If the consideration is not paid in cash, or if an exchange of goods for services takes place, the tax base will be the market value of the goods or services received at the time of supply. The VAT base cannot be lower than the cost of goods sold.
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How Acumen’s International PEO and Payroll Service can Benefit Your Business in Montenegro
Compensating your local and expat workforce in Montenegro and closely adhering to Montenegrian taxation requirements can divert your attention and resources from activities that help your business grow. A reliable global employment solution like Acumen’s Global PEO and Payroll service can take a substantial burden off your shoulders so you can focus on running your company.
Outsourcing the administrative and compliance tasks involved in employee payroll is one approach, but we have a better solution. Acumen International offers a global PEO and payroll solution that goes beyond outsourcing. We hire and compensate your global workforce on your behalf, and take care of all the details of payroll while ensuring full compliance with Montenegrian labor and taxation laws.
It is important to note that Acumen does not provide international global payroll services as a standalone solution, but only as a part of our global PEO and Payroll solution.
Our comprehensive global PEO and payroll services are just some of the benefits of partnering with Acumen International. We make it easy for you to achieve your business goals in Montenegro by officially employing and compensating your best selected global talent – both locals and expats – without concerns for legal and compliance risks faced by global employers.
Disclaimer: Any of the above information is subject to changes imposed by Montenegrian laws. To get the latest updates on taxation in Montenegro and in 190 countries worldwide, contact Acumen’s team of global employment experts.