Taxation of Dividends in Montenegro

Taxation of Dividends in Montenegro

Updated on Wednesday 01st March 2023

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Depending on whether the dividends in Montenegro are payed to companies or individuals, a different tax is applied. However, the same percentage of 9% is levied from the revenues received as dividends, regardless of the type of tax which is applied in each case. Our law firm in Montenegro offers consultancy to investors and to anyone who needs to familiarize with the tax system in this jurisdiction and to the taxation of dividends.

What rules apply for the taxation of dividends in Montenegro?

According to our Montenegro lawyers, any income received as dividend is charged with 9% by governmental decision in Montenegro. However there are two taxes which function for the taxation of this type of revenue. If the entity which receives dividends is a company, then the dividends are considered corporate income and are taxed under the Corporate Income Tax (CIT). If the dividends are received by natural persons they are considered individual income and charged under the Personal Income Tax (PIT).
You will be subject to the same rules regardless whether you invest in Montenegro by opening a company in this country, or if your enterprise from abroad invests in a local company. The same tax liabilities function for resident and non-resident companies alike. 

More aspects concerning the taxation of dividends in Montenegro

In some cases when the shareholder is an non-resident legal entity who conducts commercial activity in Montenegro as well, its revenues from dividends may be subject to several reductions under the double taxation treaties which are in force. 
The shareholder who receives income from dividends needs to fill the tax return by the end of April. Depending on whether you are a resident company or not, there are special forms that you need to submit. Our consultants can give you more information on each step that you need to take in order to comply with the taxation system in this country.
Feel free to contact our attorneys in Montenegro in order to clarify any questions you might have on the taxation rules for dividends in Montenegro. They can also help you if you need information about the Montenegro VAT. In addition to assisting you regarding the taxation of dividends in Montenegro, you can also learn about the citizenship application procedure from our lawyers. They will not only provide you with step-by-step instructions but will also facilitate you practically throughout the entire application process. Contact our immigration lawyers to get comprehensive information about citizenship in Montenegro