Montenegro and Ukraine officials reportedly concluded the second round of negotiations by initiating an income tax treaty on 28 August 2024.
This agreement, which will replace the 2001 tax treaty established between Ukraine and the former Yugoslavia, will come into effect following the necessary signing and ratification processes.
A tax treaty is a bilateral agreement between two countries to address double taxation on both the passive and active income of their citizens.
These treaties typically establish how much tax a country can impose on an individual’s income, capital, estate, or wealth. Income tax treaties are also known as Double Tax Agreements (DTAs).
The new treaty aims to enhance economic cooperation between the two nations by providing clearer guidelines for tax obligations and preventing double taxation on income. Once implemented, it is expected to facilitate cross-border investments and improve the business environment for both countries, aligning with international standards for tax treaties.
