9. april 2021

Double Taxation Agreement Montenegro

This is another tax area in which Montenegro is favourable compared to the major economies of Western Europe, where property taxes can be twice as high. Is there a number of mini-mus days before the local tax authorities apply the employer`s economic approach? If so, what is the number of de minimis days?2 It is necessary to provide sufficient evidence of an applicant`s residence if he wishes to benefit from the provisions of the double taxation agreement. As a general rule, a certificate of residence and proof of a foreign tax authority competent on the fact that the candidate already pays taxes there are necessary. Tax evasion is thus avoided. Our business start-up specialists in Montenegro are ready to help investors use the double taxation agreements concluded by that country. As a relatively small country with few natural resources, Montenegro`s economy relies mainly on the service industry (tourism), but also on foreign investment. Foreign investors are encouraged to invest capital in local businesses, even if they are not residents, through a series of incentives taken by the government, such as signing double taxation agreements with a number of countries. Spouses are taxed separately and there is no collective taxation of a family unit. The taxation of gifts is governed by different tax laws that govern the imposition of the transfer of different types of property./building property. Do Montenegro`s tax authorities follow the economic approach of employers in interpreting Article 15 of the OECD Treaty? If not, are the tax authorities in Montenegro considering taking this interpretation of the economic employer in the future?1 In addition to these contracts, many other draft contracts are being discussed. Contracts are signed and ratified by the representative of the Ministry of Finance and may come into force thereafter. If a non-resident has contributed to the capital of the corporation with sufficient money or benefits in kind, the withholding tax on the dividends cannot be taxable.

For more details on the provisions of a certain double taxation agreement concluded by Montenegro, please contact our experts in Montenegro`s business start-up. Montenegro signed the Central European Free Trade Agreement (CEFTA) in July 2007.