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 @JudithFreedman: Mmmm, so much for consultation and international cooperation. https://t.co/xgNsZwpOdz

Feb 20 2018 04:12 ·  reply ·  retweet ·  favourite
International Tax Review Profile

RT @CLivingston96: Proud that @vertexinc CTO @b_pinamont is speaking at the @IntlTaxReview Women in #Tax Forum in NYC on 3/1! Who else is a…

Feb 19 2018 05:55 ·  reply ·  retweet ·  favourite
International Tax Review Profile

RT @Richard_Asquith: Political uncertainty says IMF means 18 month+ delay on VAT in Bahrain Kuwait Qatar or Oman https://t.co/IAJOQyYYAh ht…

Feb 19 2018 03:54 ·  reply ·  retweet ·  favourite
International Tax Review Profile

Good news for tax professionals as US Treasury proposes to repeal 298 outdated tax regulations. https://t.co/U2ipmjA8gi

Feb 13 2018 03:40 ·  reply ·  retweet ·  favourite
International Tax Review Profile

RT @MPAgnew: Roses are red And subject to VAT Unlike other things Such as garments not suitable for older persons made from Tibetan goat fu…

Feb 8 2018 03:48 ·  reply ·  retweet ·  favourite
International Correspondents