Montenegro Double Taxation Agreements

Another way to avoid tax evasion is to exchange information about taxpayers in contracting countries. These rules are defined at the end of double taxation agreements. Montenegro can also sign agreements to exchange tax information if the provisions of the treaty are insufficient. As a relatively small country with few natural resources, Montenegro`s economy relies mainly on the service industry (tourism), but also on foreign investment. Foreign investors are encouraged to invest capital in local businesses, even if they are not residents, through a series of incentives taken by the government, such as signing double taxation agreements with a number of countries. Are there tax-exempt income areas in Montenegro? If so, please provide a general definition of these areas. Is there any foreign tax relief in Montenegro? For example, a foreign tax credit system (FTC), double taxation agreements, etc.? It describes the bilateral and multilateral trade agreements to which that country belongs, including with the United States. Includes websites and other resources that allow U.S. companies to get more information about how they can use these agreements. This type of contract is essential to attract foreign investors to Montenegro. The possibility of double taxation of income is excluded.

Income is taxed in Montenegro (by credit method) or in the country of residence (by exemption). How is a person defined as resident Montenegro for tax purposes? Is there a number of mini-mus days before the local tax authorities apply the employer`s economic approach? If so, what is the minimum number of days?2 Spouses are taxed separately and there is no group taxation of a family unit. In addition to these treaties, many other draft treaties are being discussed. Contracts are signed and ratified by the representative of the Ministry of Finance and may come into force thereafter. Do the immigration authorities in Montenegro tell the local tax authorities when a person enters or leaves Montenegro? When a double taxation agreement is concluded between Montenegro and the expatriate country, the provisions of the treaty determine the country in which the expatriate`s salary is taxable. The reduction of double taxation through a tax treaty outweighs domestic relief. As of 1 January 2018, Montenegro has 44 effective double taxation agreements on income and capital. If a non-resident has contributed to the capital of the corporation with sufficient money or benefits in kind, the withholding tax on the dividends cannot be taxable. For more details on the provisions of a certain double taxation agreement concluded by Montenegro, please contact our experts in Montenegro`s business start-up. Bilateral tax treaties Montenegro does not have a double taxation agreement with the United States.

The country has signed 46 tax treaties with different countries on income and property, which regulate double taxation.