Montenegro published the law ratifying its pending income tax treaty with Luxembourg in the Official Gazette on 5 August, 2024.
Earlier, the Parliament of Montenegro announced the passage of the law to ratify the income and capital tax treaty with Luxembourg on 31 July 2024.
This treaty, signed on 29 January 2024, marks the first formal tax agreement between the two nations. This agreement aims to enhance economic cooperation and provide a clearer framework for taxation between Montenegro and Luxembourg, facilitating smoother cross-border investments and business operations.
On day eleven of the sixth sitting of the First Ordinary Session in 2024, MPs adopted the proposal for the Law on Amendments to the Law on International and Temporary Protection of Foreigners, the Proposal for the Law on Agriculture Census for 2024, the Proposal for the Law on Forests, the Proposal for the Law on Ratification of the Agreement between the Government of Montenegro and the Grand Duchy of Luxembourg on elimination of double taxation with respect to taxes on income and on capital and the prevention of tax evasion and avoidance, the Proposal for the Law on Amendments to the Law on Inspection Control, and the Proposal for the Law on Amendments to laws prescribing provisions on the inspection control.
The treaty is set to take effect once the necessary ratification instruments are exchanged, with its provisions applying from 1 January of the year following its enactment.
