Montenegro to introduce progressive tax on corporate income - fin min

"We will introduce a progressive tax on the income of legal entities, as some companies with profits worth millions of euro pay a proportional instead of progressive tax," Spajic said in a video file posted on the YouTube channel of Montenegro's finance ministry on Tuesday.

Currently, corporate and personal income tax in Montenegro are both set at 9%.

The government also intends to introduce a progressive tax on personal income and to increase the non-taxable part of gross wages to 700 euro ($822), opening space for the increase of salaries, Spajic said.

"Our plan envisages the reduction of the tax burden on wages from the current 39% to 21% [...] There will be no more mandatory health insurance fees, as every citizen has the right to access the healthcare system, while the budget revenue will be compensated through an increase of excise duties," he noted.

The government plans to increase the tax on dividends and introduce a special tax on cash withdrawals for companies to decrease the share of the grey economy, Spajic said.

"We expect the private sector to follow these steps of the state, especially large companies. We expect them to show responsibility and pass on the savings they will generate to the workers and thus increase their net earnings," he added.

($ = 0.851125)