The Montenegro Parliament, on its 26th convocation on
October 11 2017, adopted the Law ratifying the agreement signed
between Montenegro and Republic of Portugal on the avoidance of
double taxation and prevention of tax evasion.
The taxes to which this convention applies include the
Montenegrin corporate profit tax and personal income tax as
well as the Portuguese personal income tax, corporate income
tax and surtaxes on corporate income tax.
The main withholding tax rates with respect to dividends,
interest and royalties are mentioned below:
- Dividends will be taxed with a withholding
tax rate of 5% of the gross amount if the beneficial owner is
a company holding at least 5% of the capital of the company
paying the dividends or 10% in all other cases;
- Interest paid to a resident of the other
state may be taxed in the state in which it arises at a
maximum rate of 10% of the gross amount of the interest;
- Royalties arising in one state and paid to
a resident of the other state may be taxed in the origin
country at a rate of 5% or 10% of the royalties.
The signing of the treaty is expected to contribute to the
further development of the economic relations between
Montenegro and Portugal. The treaty will remain in force for an
unlimited period of time.
Jelena Zivkovic (firstname.lastname@example.org)
Tel: +382 20 228 490