New law on accounting 2025

mladenrakocevicrac
Sep 9
2 min read

In the Official Gazette 084/2025, a new Accounting Law has been published:

Comparative Analysis: New vs. Old Accounting Law of Montenegro.

The 2025 Law introduces significant changes compared to the previous law from 2021/2022, aiming to align with EU directives, strengthen professional standards, and enhance business transparency.

1. Classification of Legal Entities – Thresholds Increased

Category	Old Law 2021/2022	New Law 2025
Micro	≤10 employees, ≤€700,000 revenue, assets up to €350,000	≤10 employees, ≤€900,000 revenue, assets up to €450,000
Small	≤50 employees, ≤€8,000,000 revenue, assets up to €4,000,000	≤50 employees, ≤€10,000,000 revenue, assets up to €5,000,000
Medium	≤250 employees, ≤€40,000,000 revenue, assets up to €20,000,000	≤250 employees, ≤€50,000,000 revenue, assets up to €25,000,000
Large	Exceeds 2 out of 3 criteria for medium	Exceeds 2 out of 3 criteria for medium

Note: The new law introduces the obligation to adopt and publish a Classification Decision in the notes to the financial statements.

2. Licensing of Accounting Service Providers

Old law: Licensing was prescribed, but without a central register.

New law: Introduces a Register of Accounting Service Providers maintained by the Ministry of Finance. The permit is issued under stricter conditions:

· Level VII-1 education

· Professional qualification (CORS-1 or IFAC membership)

· 3–5 years of experience

· Mandatory liability insurance for public interest entities

3. Reporting Obligations and Deadlines

Type of Report	Deadline under Old Law	Deadline under New Law
Annual Financial Statements	31 March	31 March
Consolidated Statements	31 May	31 May
Corporate Income Tax Report	Not required	31 May from 2027 for companies with revenue over €750 million

The new law introduces the obligation to publish a corporate income tax report for legal entities with revenue over €750 million.

4. Non-Financial Reporting and ESG Elements

Old law: Non-financial reporting was mandatory for large legal entities with more than 500 employees.

New law: Expands obligations and introduces mandatory in-depth analysis of the impact of business activities on the environment, human rights, and corruption.

5. Corporate Governance Code

Old law: Mandatory statement for public interest entities.

New law: More specifically defines the structure of the statement, including:

· Diversity policy

· Pyramidal ownership structures

· Restrictions on voting rights

Public interest entities are defined as:

· Legal entities issuing securities and other financial instruments traded on an organized market;

· Credit and other financial institutions;

· Insurance companies;

· Legal entities classified as large under this law;

· Companies whose founder or majority owner is the state or a local self-government unit, and which are classified as large or medium-sized legal entities.

6. Penal Provisions – Significantly Stricter

Type of Entity	Old Law	New Law
Legal Entities	€500–16,500	€2,000–20,000
Responsible Persons	€50–2,000	€600–2,000
Entrepreneurs	€150–6,000	€150–6,000

Penalties have been expanded to include more offences, such as failure to publish the corporate income tax report and non-compliance with classification requirements.

7. Valuation of Assets

Old law: Basic provisions on the licensing of valuers.

New law: Detailed licensing procedure, mandatory insurance, register of valuers, contractual regulation, and content of the valuation report.

Conclusion

The new Accounting Law of 2025 represents a significant step towards the professionalization and transparency of accounting practice in Montenegro. Alignment with EU directives, the introduction of registers, expanded reporting obligations, and stricter conditions for service providers make it a key instrument for modernizing the business environment.