According to the law in Montenegro, the obtained income is taxed on residents as well as on foreigners. There is a unique rate of 9% applied on the income of companies, this tax being referred to by the name of corporate tax or company tax. The corporate tax is calculated annually and must be submitted by the end of April for the previous fiscal year. There are also exceptions for income coming from particular types of activities. Our tax experts can give all information regarding the taxation of your income in Montenegro.
The foreign investors in Montenegro paying corporate tax in this country might enter the provisions of double taxation treaties between Montenegro and their country of residence. This might give them the possibility to deduce part of the taxes payed in Montenegro through applying for in their country of residence.
Montenegro has signed double tax treaties with: Albania, Belarus, Belgium, Bosnia and Herzegovina, Bulgaria, China, Croatia, Cyprus, Czech Republic, Denmark, Egypt, Finland, France, Germany, Hungary, Iran, Italy, Korea, Kuwait, Latonia, Macedonia, Malaysia, Moldavia, Holland, Norway, Poland, Romania, Russia, Slovakia, Slovenia, Sri Lanka, Sweden, Switzerland, Turkey, Ukraine and United Kingdom. Even though the number of treaties is not so big (mostly due to the fact that Montenegro has already a very advantageous system of taxes) the number of it is increased every year.
These treaties of double tax avoidance are very important instruments used for attracting foreign investments due to the fact that the legal entities are no longer endangered to pay taxes in both the country of origin and in the country of residence. Our tax experts will explain you how to benefit from this type of agreement.