{"id":214,"date":"2023-05-09T14:42:56","date_gmt":"2023-05-09T14:42:56","guid":{"rendered":"https:\/\/companyformationmontenegro.com\/?p=214"},"modified":"2023-05-09T14:42:59","modified_gmt":"2023-05-09T14:42:59","slug":"taxation-of-llcs-in-montenegro","status":"publish","type":"post","link":"https:\/\/companyformationmontenegro.com\/taxation-of-llcs-in-montenegro\/","title":{"rendered":"Taxation of LLCs in Montenegro"},"content":{"rendered":"\n<p>One of the most popular types of legal entities in Montenegro is the\u00a0<a href=\"https:\/\/www.companyformationmontenegro.com\/open-a-d.o.o-in-montenegro\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>LLC (limited liability company)<\/strong><\/a>. At the present,<strong>\u00a0LLCs<\/strong>\u00a0are particularly chosen by foreign entrepreneurs because they offer the possibility of land ownership in this country, which is not possible otherwise for foreign citizens in Montenegro.<\/p>\n\n\n\n<p>In this article, our&nbsp;<a href=\"https:\/\/www.companyformationmontenegro.com\/about-us\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>company formation consultants in Montenegro<\/strong><\/a>&nbsp;explain different aspects related to the&nbsp;<strong>taxation of LLCs in Montenegro<\/strong>.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/companyformationmontenegro.com\/taxation-of-llcs-in-montenegro\/#how-is-an-llc-taxed-in-montenegro\" title=\"How is an LLC taxed in Montenegro?\">How is an LLC taxed in Montenegro?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/companyformationmontenegro.com\/taxation-of-llcs-in-montenegro\/#taxation-on-dividends-for-llcs-in-montenegro\" title=\"Taxation on dividends for LLCs in Montenegro\">Taxation on dividends for LLCs in Montenegro<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"how-is-an-llc-taxed-in-montenegro\"><\/span><strong>How is an LLC taxed in Montenegro?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The<strong>&nbsp;corporate tax<\/strong>&nbsp;rate&nbsp;<strong>on profits for LLCs in Montenegro<\/strong>&nbsp;is 9%. This rate is applied only to residents of the country.<\/p>\n\n\n\n<p>Non-residents of Montenegro are taxed only on their locally sourced income. The profits which are gained from outside of the country are therefore entirely exempt from taxation.<\/p>\n\n\n\n<p>U.S. citizens and all other citizens of other states have to declare their income to their local tax authorities. Our&nbsp;<a href=\"https:\/\/www.companyformationmontenegro.com\/company-act-montenegro\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Montenegro company formation<\/strong><\/a>&nbsp;advisors can provide further details on this matter. We can also assist you to<strong>&nbsp;open<\/strong>&nbsp;such&nbsp;<strong>a company in Montenegro<\/strong>.<\/p>\n\n\n\n<p>The&nbsp;<strong>capital gains tax&nbsp;<\/strong>for foreign citizens&nbsp;<strong>in Montenegro<\/strong>&nbsp;is 9% as well, however, it is only applied to the sale of an&nbsp;<strong>LLC<\/strong>&nbsp;shares which involves non-residents.<\/p>\n\n\n\n<p>While an&nbsp;<strong>LLC<\/strong>&nbsp;owned by a non-resident could be entirely&nbsp;<strong>exempt from taxation in Montenegro<\/strong>, it must, though, register with the local tax authority and get a tax identification number. LLCs can&nbsp;<a href=\"https:\/\/www.companyformationmontenegro.com\/eori-registration-in-montenegro\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>apply for EORI registration in Montenegro<\/strong><\/a>&nbsp;if they intend to engage in trading activities.<\/p>\n\n\n\n<p>The yearly financial statements for an&nbsp;<strong>LLC in Montenegro<\/strong>&nbsp;are not requested. Yearly audits are necessary, however, they do not have to be filed with the local government.<\/p>\n\n\n\n<p>Standard internationally accepted accounting performs and record keeping are accepted in this state.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"taxation-on-dividends-for-llcs-in-montenegro\"><\/span><strong>Taxation on dividends for LLCs in Montenegro<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The owners and shareholders of&nbsp;<strong>LLCs in Montenegro&nbsp;<\/strong>can be legal entities or private individuals.<\/p>\n\n\n\n<p>The<strong>&nbsp;taxation<\/strong>&nbsp;<strong>on<\/strong>&nbsp;the distribution of&nbsp;<strong>dividends issued by an LLC<\/strong>&nbsp;here is effectuated according to the Law on Corporate Income Tax (for companies) and to the Law on Personal Income Tax (for private individuals). Our&nbsp;<a href=\"https:\/\/www.companyformationmontenegro.com\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>company registration agents in Montenegro<\/strong><\/a>&nbsp;can offer more information on these laws.<\/p>\n\n\n\n<p>If the shareholders or owners of an&nbsp;<strong>LLC<\/strong>&nbsp;in this country are companies, a<strong>&nbsp;withholding&nbsp;<\/strong><strong>taxation<\/strong>&nbsp;of 9% is calculated and paid on the dividends issued by such a legal entity.<\/p>\n\n\n\n<p>In case you have more questions about the<strong>&nbsp;taxation<\/strong>&nbsp;imposed&nbsp;<strong>on LLCs in Montenegro<\/strong>, or for help to&nbsp;<strong>open a Montenegro company<\/strong>, we kindly invite you to&nbsp;<a href=\"https:\/\/www.companyformationmontenegro.com\/contact\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>get in touch<\/strong><\/a>&nbsp;with us.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>One of the most popular types of legal entities in Montenegro is the\u00a0LLC (limited liability company). At the present,\u00a0LLCs\u00a0are particularly chosen by foreign entrepreneurs because they offer the possibility of land ownership in this country, which is not possible otherwise for foreign citizens in Montenegro. In this article, our&nbsp;company formation consultants in Montenegro&nbsp;explain different aspects [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":120,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[8,10,105,9,12,11,104],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Taxation of LLCs in Montenegro<\/title>\n<meta name=\"description\" content=\"Here are a few details related to the taxation of LLCs in Montenegro. 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