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Montenegro

Taxes

Want to setup a company? This will tell you about tax laws for a LLC, which is the most common legal entity in Montenegro.

Montenegro imposes corporate tax on resident companies worldwide income. The prevailing estimated tax rate for offshore income, from our research, but seek professional advice, is 9%. Montenegro may not have major incentives to bring in offshore income made internationally. Taxes are low in Montenegro because the CIT rate is 9%. This ranks Montenegro as 32nd overall with regards to corporate tax rate worldwide.

The VAT rate in Montenegro is 19.00%, which ranks Montenegro as 127th overall with regards to VAT taxation rate internationally. In terms of other taxation, an employer will contribute 10.30% to the equivalent of a social security fund and an employee will contribute 24.00%. The overall complexity of the tax system is medium. This is measured by average time to comply with a country's labor tax requirements is as it is 98 hours. Contributing to this is the number of yearly labor tax payments, which is 2 in ME.

Thin capitalization standards are not officially enacted. Thin capitalisation refers to any type of requirements on given company with respect todebt-to-asset ratios. Dividents payments between resident companies are subject to a final withholding tax of 9%. Dividends received by domestic companies from foreign companies are included in income tax base, but there are usually available tax credits for foreign tax paid limited to the amount that would be calculated using Montenegrin rates. Dividends are distributions of a company's earnings, decided by the board of directors, to a class of its shareholders. Dividends can be one of the following stock, cash, or property. Capital Gains are considered ordinary income and taxed at corporate income standard tax rate of 9%. A capital gains tax is levied on the profits that a corporation or natural person realizes when he or she sells sells a capital asset for a price that is higher than the purchase price.

The interest withholding tax rate is estimated at 9%. Which means that the tax authorities expects legal entities to automatically withhold 9% of payments abroad on interests. The dividends withholding tax rate is 9%. This should be interpreted that usually the taxman expects relevant legal entities to pay tax on 9% of dividends remitted abroad. Royalties are also subject to a withholding tax of 9%. This means that any payment to non-resident on royalties is taxed at a 9% rate. Withholding tax rates may be reduced under a tax treaty.
There is no known tax on wealth in Montenegro. There are inheritance, transfer and real property taxes in ME. We are not aware of any popular and well known R&D initiatives that provide breaks on taxation in this country.

The above is not tax or legal advice for your particular personal tax obligations. Incorporations.io can point you to a lawyer in Montenegro who can give you the proper advice and help you need. Ready to get started? Click the free consultation button above.

Country details

Montenegro
EUR
Podgorica
Europe
Serbian, Hungarian, bs, Albanian, Croatian, rom
666,730

Tax treaties

Country Type Date Signed
Former Yugoslav Republic of Macedonia DTC  1996-09-04
Albania DTC  2004-12-22
Russian Federation DTC  1995-10-12
Poland DTC  1997-06-12
Croatia DTC  2001-12-14
Cyprus DTC  1985-06-29
Malta DTC  2008-11-04
Finland DTC  1986-05-08
India DTC  2006-02-08
Denmark DTC  1981-03-19
Ukraine DTC  2001-03-22
Sweden DTC  1980-06-18
Latvia DTC  2005-11-22
United Arab Emirates DTC  2012-03-26
Italy DTC  1982-02-24
Czech Republic DTC  2004-11-11
Turkey DTC  2005-10-12
Hungary DTC  2001-06-20
Ghana DTC  2000-05-25
Slovenia DTC  2003-06-11
Belgium DTC  1980-11-21
United Kingdom DTC  1981-11-06
Switzerland DTC  2005-04-13
Romania DTC  1996-05-16
Kazakhstan DTC  2005-11-22
Netherlands DTC  1982-02-22
France DTC  1974-03-28
Azerbaijan DTC  2013-03-12
Ireland DTC  2010-10-07
Slovakia DTC  2001-02-26

Tax treaties Map

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Disclaimer

Although we use our best efforts to keep the information of this site accurate and up-to-date, we make no representations or warranties with respect to the accuracy, applicability, fitness, or completeness of the contents of this website. We disclaim any warranties expressed or implied, merchantability, or fitness for any particular purpose. We shall in no event be held liable for any loss or other damages, including but not limited to special, incidental, consequential, or other damages. The contents of this website are just for illustrative purposes and are NOT to be considered as a legal opinion or tax advice and should not be relied upon as such. Far Horizon Capital Inc., and any associated company, is not engaged in the practice of law or tax. If you wish to receive a legal opinion or tax advice on the matter(s) in this website please contact our offices and we will refer you to an appropriate legal practitioner. Use of our websites FlagTheory.com, Incorporations.io, Residencies.io, Passports.io, is subject to our terms and conditions.

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