What are tax incentives in Montenegro?

 

  • Tax credits – The amount of tax due can be reduced by 25% of the amount invested in fixed assets for the respective tax period. This reduction cannot exceed 30% of the total tax liability.
  • Incentives for non-developed areas (Northern part of the country) - New founded companies, in the area of production, are corporate tax-free during the first three years of operation.
  • Carrying Loss - Losses resulting from business relations, excluding those resulting in capital gains and losses, may be transferred forward to offset profit generated in future calculations periods, but not exceeding five years.
  • Investments in securities – If profit from capital investment is used for purchase of new securities, such profit is not taxable under to condition that it is reinvested within 12 months from its arising. Profit from sale of securities held by a taxpayer for more than two years in his portfolio is exempt from taxation.

 

What are custom tariff incentives in Montenegro?

 

  • Import of raw materials – one does not have to customs for raw materials in case that one will export finished products made by imported raw materials. For this, it is necessary to have approval for this procedure by authoritative custom- house.
  • Import of equipment as the equity of foreign investor – one does not have to pay customs, but one has to pay VAT. It is necessary that user of this right hand in the appeal with ascribable certificates by authoritative custom- house, which make decision about liberate of customs.
  • No exports custom – one does not have to pay any custom on exported goods, but one has to pay VAT by rate of 0%, by the Law on VAT. This means that one paid VAT on raw materials, and than when he exports finished products he does not pay VAT, and you have right for refunding VAT on raw materials.