Following Montenegro's ratification, 21 of its tax treaties are now subject to BEPS-prevention measures under the MLI, while application to its treaty with Romania awaits a separate OECD notification.
Montenegro enacted the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI) on 1 September 2026. The convention will modify covered tax agreements where the required conditions for its application have been met.
For covered agreements between Montenegro and treaty partners where the MLI is already in force, the provisions will generally take effect from 1 January 2027 for withholding taxes. For other taxes, the MLI will generally apply to taxable periods beginning on or after 1 March 2027, six months after its entry into force for Montenegro.
Montenegro signed the MLI on 12 November 2025 and deposited its final MLI Position on 6 May 2026. Its position identified 40 tax treaties that Montenegro wished to have covered by the convention.
The MLI can apply to a treaty only when both signatories have joined the convention, included each other in their lists of covered tax agreements and deposited their respective instruments of ratification, acceptance or approval.
As of 1 September 2026, these requirements had been satisfied for 21 treaties, meaning the MLI will apply to Montenegro’s agreements with Albania, Austria, Azerbaijan, Belgium, Bosnia and Herzegovina, Bulgaria, China (People’s Rep.), Croatia, Cyprus, Denmark, Finland, France, Ireland, Latvia, Malta, the Netherlands, Portugal, Serbia, Slovak Republic, Ukraine, UAE and the UK.
Application to the Montenegro – Romania Income and Capital Tax Treaty (1996) remains deferred under Article 35(7)(b) of the MLI. Montenegro has completed its internal procedures, but the MLI will affect the treaty only after Romania submits the required notification to the OECD.
The precise amendments to Montenegro’s bilateral tax treaties will depend on the final adoption positions of the respective treaty partners. Montenegro’s reservations and notifications submitted when its ratification instrument was deposited are set out in its definitive MLI Position.
