Copying and distributing are prohibited without permission of the publisher

Montenegro: Montenegro and Portugal sign DTA

25 January 2017

Email a friend
  • Please enter a maximum of 5 recipients. Use ; to separate more than one email address.


Ivan Petrovic

Montenegro has signed double taxation treaties (DTAs) with more than 35 countries, and this number continues to grow.

The most recently signed treaty is the one concluded with Portugal. The agreement affects individuals who are residents of one or both of the contracting states and applies to the Portuguese personal income tax, corporate tax and surtax, as well as to the Montenegrin personal income tax and corporate tax.

The agreement stipulates that dividends paid by a resident of one contracting state to a resident of the other contracting state may be taxed in that other country. The withholding tax rate for dividends is defined to be 5% of a dividend's gross amount if the beneficial owner is a company that has a minimum 5% capital of the company that pays the dividend, or 10% in all other cases.

Interest that arises in one contracting state and is paid to a resident of the other contracting state may be taxed in that other state, but can also be taxed in the country in which it arises if the beneficial owner of the interests is a resident of that state. In such cases, the withholding tax rate is 10%.

As far as royalties are concerned, the withholding tax rate is 5% for royalties related to art, scientific or literary works, and 10% of gross amount for royalties related to trademark, design or model, plan, a secret formula or its procedure.

The treaty requires ratification by both countries before it enters into force.

Ivan Petrovic (ivan.petrovic@eurofast.eu)
Eurofast Montenegro
Tel: +382 20 228 490
Website: www.eurofast.eu






International Tax Review Profile

RT @YouGov: With the government restating its commitment to leaving the EU's custom union, YouGov data earlier this year found that half of…

Apr 24 2018 12:12 ·  reply ·  retweet ·  favourite
International Tax Review Profile

AEOI affecting individuals and its effect on banking secrecy rules: Since the beginning of the 20th century, bankin… https://t.co/48mDSreSYY

Apr 24 2018 11:00 ·  reply ·  retweet ·  favourite
International Tax Review Profile

Is an intergovernmental tax body a good idea? #tax #taxjustice https://t.co/PF91Eu3784

Apr 24 2018 08:47 ·  reply ·  retweet ·  favourite
International Tax Review Profile

@VidyaKauri Hi Vidya, this is Joe. Sending you a DM.

Apr 23 2018 09:30 ·  reply ·  retweet ·  favourite
International Tax Review Profile

A guide through Switzerland’s revised VAT Act. The long-awaited partial revision of the Swiss VAT Act was finally p… https://t.co/96y84YUjJt

Apr 23 2018 07:00 ·  reply ·  retweet ·  favourite
International Correspondents