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Russia Suspends Tax Treaties with Montenegro and Others
Written by Marko Mirović

August 17, 2023

According to the Russian media, last week Russian President, Vladimir Putin signed an executive order on suspending certain provisions of double tax avoidance agreements with many countries, mostly the ones that have any sanctions against Russia.

This decree cancels withholding tax provisions, property income tax relief, dividends, interest, royalties, pensions, and other tax relief. It also comes into immediate effect, without time for preparation.

The suspension includes EU countries, the US, the UK, Canada, Singapore, and others. Although it hosts a lot of Russian capital, Montenegro is on this list too. 

According to the unofficial translation of the decree you can find here, Russia suspends the double tax evasion treaty it signed with the former Republic of Yugoslavia back in 1995. The decree suspends articles 5 to 23, as well as article 25, all of which are covering investments, dividends, properties, assets, capital gains, author rights, and other income. You can download the original agreement from 1995 here.

Although these changes are mostly affecting the foreign businesses operating in Russia, it also impacts Russian investors who settled in Montenegro in large numbers. So, if you are coming from Russia, this might be a good time to obtain your tax residence in Montenegro if you haven’t already. By spending a minimum of 183 days per year in our country and obtaining a confirmation about it, you can make sure to pay your taxes in Montenegro and not be double-taxed. Make an inquiry with your accountant or contact us for help and advice on the matter.

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