The income tax treaty between the Czech Republic and Montenegro took effect on 30 January 2025.
Signed on 20 February 2024, it replaces the 2004 treaty between the Czech Republic and the former Serbia and Montenegro.
The income treaty aims to prevent double taxation of income and combat tax evasion.
Earlier, Czech President Petr Pavel enacted the law ratifying the pending income tax treaty with Montenegro on 1 October 2024.
Under the income tax treaty, dividends are taxed at a rate of 10%, while interest is also subject to a 10% tax. Royalties have varying rates, with some taxed at 5% and others at 10%.
The treaty takes effect on 1 January 2026.
