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.
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