All material subject to strictly enforced copyright laws. © 2022 ITR is part of the Euromoney Institutional Investor PLC group.

Montenegro: Tax treatment of purchase of antivirus software licenses from foreign companies

zivkovic.jpg

Jelena Zivkovic

Production of antivirus software systems and other services related to software products are defined as special way of providing intellectual services in areas of complex science projects, especially programming, projecting and realisation. The Montenegrin VAT Law prescribes for the purchase of antivirus system software and other products related to software products that are produced in a foreign country for a Montenegrin company being subject to VAT at the rate of 17% in Montenegro (country of origin of customer). The tax base is the purchase price.

In addition, according to the Corporate Income Tax Law, the taxpayer is obliged to calculate, withhold and pay withholding tax (WHT) at the rate of 9% on payments made to non-residents in respect of interest, royalties and other intellectual property rights, capital gains, lease of immovable and movable property, the fees based on consulting services, market research services and audit services.

Since the local legislation recognises computer software as special way of intellectual services, WHT is payable in the case of the transfer of antivirus software copyrights for using antivirus systems for resale or in case of its further development.

In case of the procurement of an antivirus system for a company's internal usage, there is no obligation of WHT payment.

Jelena Zivkovic (jelena.zivkovic@eurofast.eu)

Eurofast Global, Podgorica Office, Montenegro

Tel: +382 20 228 490

Website: www.eurofast.eu

More from across our site

ITR is delighted to reveal all the shortlisted firms, teams and practitioners – winners will be announced on August 25
Multinational enterprises run the risk of hefty penalties if the company in question fails to register for VAT when providing electronic services in South Africa.
Tax directors have urged companies to ensure they have robust tax risk management controls when outsourcing tax functions.
Japan reports a windfall from all types of taxes after the government revised its stimulus package. This could lead to greater corporate tax incentives for businesses.
Sources at Netflix, the European Commission and elsewhere consider the impact of incoming legislation to regulate tax advice in the EU – if it ever comes to pass.
This week European Commission officials consider legal loopholes to secure minimum corporate taxation, while Cisco and Microsoft shareholders call for tax transparency.
The fast-food company’s tax settlement with French authorities strengthens the need for businesses to review their TP arrangements and documentation.
The full ALP model will be adopted through a new TP regime, which is set to boost the country’s investments and tax certainty.
Tax professionals have called on the UK government to reconsider its online sales tax as it would affect the economy at the worst time.
Tax professionals have called on companies to act urgently to meet e-invoicing compliance targets as the EU plans to ramp up digitisation.
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree