Montenegro’s Tax Administration collected €1.52 billion in gross tax revenue during the first ten months of 2026, representing annual growth of 10% and exceeding the planned collection target by €62.1 million. The results provide additional fiscal support as the government prepares its 2027 budget amid increasing public expenditure commitments.
Total collections increased by approximately €139.4 million compared with €1.38 billion recorded during the corresponding period of the previous year. Revenue also exceeded the ten-month target by 4.3%.
The increase was driven primarily by value-added tax, corporate income tax and social security contributions, which all recorded higher collections.
VAT and Corporate Income Tax Support Revenue Growth
Value-added tax (VAT) generated €537.2 million, an increase of 8.6% year on year, equivalent to approximately €42.4 million in additional revenue. Collections exceeded the planned target by €17.5 million. Corporate income tax receipts reached €237 million, representing annual growth of 4.3% and an increase of approximately €9.8 million compared with the previous year.
Social security contributions generated €373.5 million, up 10.2%, or €34.6 million year on year. Collections from this category also surpassed the target by approximately €3.4 million. The Tax Administration attributed the revenue performance partly to stronger voluntary tax compliance, improvements in taxpayer services and more effective risk-based inspection procedures.
Although the figures demonstrate nominal growth across major tax categories, they do not establish the respective contributions of inflation, employment growth, broader economic activity and improvements in collection efficiency.
Fiscal Outlook Ahead of the 2027 Budget
The revenue performance comes as the government prepares its proposed 2027 budget. Montenegro faces increasing scrutiny over the fiscal consequences of the proposed Euro Model wage and pension reforms, including changes to employment-related contributions.
Potential restructuring of payroll taxation could affect the future composition of public revenue, increasing the importance of VAT, corporate income tax and other sources of government income. Stronger tax collection has not translated automatically into an improved budget balance. Montenegro recorded a budget deficit of approximately €124.2 million during January–September, as expenditure increased faster than revenue.
Capital investment, debt servicing and social transfers remain significant government spending commitments.
The distinction between Tax Administration collections and overall central government budget revenue is also important, as the two indicators cover different reporting categories and accounting arrangements. Consequently, the €1.52 billion collected by the Tax Administration does not represent the entirety of government fiscal receipts.
Tax Collection and Public Finance Sustainability
The latest figures provide investors and creditors with evidence of continued growth in tax collections and the performance of Montenegro’s revenue administration.
The sustainability of public finances will also depend on expenditure management and future economic growth, particularly as the government considers changes to wages, pensions and employment-related taxation. The Tax Administration plans to continue modernising its procedures and strengthening tax compliance activities during the remainder of the year.
