Tax Exemption Certificates – Interest and Royalties

The Ministry of Finance has adopted the Rulebook on the Issuance Procedure and Detailed Content of the Tax Exemption Certificate Issued by the Tax Authority to the Recipient of Interest and Royalties

(“Official Gazette of Montenegro”, no. 130/24 dated 31.12.2024).

This rulebook is adopted pursuant to and in connection with Article 29f, paragraph 4 of the Corporate Income Tax Law (“Official Gazette of the Republic of Montenegro”, no. 065/01, 012/02, 080/04; “Official Gazette of Montenegro”, no. 040/08, 086/09, 040/11, 014/12, 061/13, 055/16, 146/21, 152/22, 028/23, 125/23, 088/24):

1. Payments of interest and royalties made by a payer from Montenegro are not subject to withholding tax, provided that the recipient submits to the payer a certificate issued by the competent tax authority of the recipient’s country, proving compliance with the conditions set out in Articles 29d and 29e of this law.
2. If the recipient fails to prove compliance with the conditions from paragraph 1 of this article at the time of payment of interest and royalties, the payer is obliged to remit withholding tax.
3. If the payments of interest and royalties are made by a payer from EU member states and their recipient is located in Montenegro, the tax authority issues a certificate to the recipient proving compliance with the conditions set out in Articles 29d and 29e of this law.
4. The method of issuance and detailed content of the certificate referred to in paragraph 3 of this article shall be prescribed by the Ministry.

This rulebook prescribes the procedure for issuance and the detailed content of the certificate issued by the tax authority to the recipient of interest and royalties.

The request form for obtaining a tax exemption certificate for income received from interest and royalties is an integral part of this rulebook.

This rulebook enters into force on the eighth day from the date of its publication in the “Official Gazette of Montenegro”, and shall apply from the date of Montenegro’s accession to the European Union.