Montenegro: New incentive related to cinematography law in Montenegro

International Tax Review is part of Legal Benchmarking Limited, 4 Bouverie Street, London, EC4Y 8AX

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Montenegro: New incentive related to cinematography law in Montenegro

pavlicevic.jpg

Andrea Pavlicevic

Since becoming independent in 2006, the government of Montenegro has recognised the need to eliminate obstacles and reform the business environment to open the economy to foreign investors and bring it closer to the European Union. One important recent step in this regard is related to the seventh art. The government plans to adopt the Law on Cinematography, which provides the return of part of the funds spent by foreign producers filming in Montenegro.

This would promote Montenegro and create a new type of industry – film tourism.

It is predicted that the refund will not have any tax character and it would provide conditions that a producer must meet to qualify for this incentive measure. For example, the producer must spend a minimum amount of €100,000 ($110,000) in Montenegro, and must have fulfilled all obligations related to taxes and contributions.

The funds for film funds will be guarded from individuals and legal entities that directly or indirectly use cinematographic works or provide access to their use in different ways.

Public service and commercial broadcasters with national coverage, operators of cable, satellite and internet distribution of radio and television programmes, theatrical displays, operators of public communication networks, including operators of internet access providers rent cinematographic works on request, such as a T-com Extra TV, and this is how the existing system works.

Undoubtedly, this contributes to the exploitation of cinematographic works.

The calculation of extraction rates would be determined by reference to the annual income from performing services related to the possibility of using a cinematographic work. The contribution rate for the film fund is one percent of that income.

"The basis for the allocation of funds at the cinema displays 3% of each sold ticket, while the public service allocates funds in the amount of 5% of the total annual revenue generated from marketing," states the law.

Andrea Pavlicevic (andrea.pavlicevic@eurofast.eu)

Eurofast Global, Podgorica Office

Tel: +382 20 228 490

Website: www.eurofast.eu

more across site & shared bottom lb ros

More from across our site

India also brokered its first-ever multilateral APA last year, the Central Board of Taxes announced
A global tax framework may not materialise anytime soon, but a common set of principles is becoming increasingly necessary, Rudolf Winkenius also tells ITR
Kingsley Napley’s claimants are arguing that taxing the provision of education breaches the European Convention on Human Rights
While pillar two can progress without the US, it won’t reach the same heights without American involvement, argues Renáta Bláhová, founding partner of BMB Partners Taxand
There are unanswered questions as to how foreign investors could reclaim money via tax credits, advisers suggested
Amid an ever-changing tax environment, India’s advisory market is bustling with competition ahead of the 2025 World Tax rankings and ITR Awards
The deal comes after PwC had accused Paul McNab of using confidential information; in other news, McDermott hired a new London tax head from a US rival
Looking at transfer pricing simplification is “obviously helpful”, but it should be done in line with current standards, a senior government figure reportedly said
The UK Government’s plans to close the tax gap via increased HM Revenue and Customs investment have failed to impress local tax advisers
Under the merged scheme for R&D tax relief introduced last year, rules on contracted out R&D have changed. James Dudbridge argues for a proactive approach when reviewing companies’ commercial arrangements
Gift this article