Luxembourg ratified both the Luxembourg-Montenegro Income and Capital Tax Treaty (2024) and the Albania-Luxembourg Income and Capital Tax Treaty (2009) along with its amending protocol on 18 December 2024.
Earlier, Luxembourg’s Chamber of Deputies gave its approval for the ratification of the income and capital tax treaty with Albania on 21 November 2024. Luxembourg’s Council of State approved a draft law to ratify the income and capital tax treaty with Albania on 24 September 2024.
The agreement was signed on 14 January 2009, it allows for a maximum dividend tax rate of 5% for companies holding at least 25% of the payer’s capital, while interest and royalties are taxed at 5%.
Luxembourg’s Chamber of Deputies approved the draft law to ratify the income and capital tax treaty with Montenegro on 21 November 2024.
Luxembourg’s Council of State approved the draft law for the ratification of the income and capital tax treaty with Montenegro on 24 September 2024. The treaty, signed on 29 January 2024 in Luxembourg, establishes tax rates for dividends, interest, and royalties between the two countries.
Luxembourg employs a mix of credit and exemption methods to avoid double taxation, whereas Montenegro uses the credit method.
