background image
Note: This Treaty may be impacted by the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS (MLI). MLI impact on Tax Treaties is available with the Orbitax International Tax Research & Compliance Expert.


At the time of signing of the Convention between Montenegro and the United Arab Emirates for the avoidance of double taxation with respect to taxes on income and capital, the undersigned have agreed that the following shall form an integral part of the Convention:

(1) With respect to Article 10, it is understood that:

  • (1) no reopening of the financial accounts is allowed if the transaction between the associated enterprices is taken on the normal commercial market (arm's length);
  • (2) the taxpeayer should be notified by the tax authorities of their intention to make transfer priceing adjustment.

With reference to paragraph (3) of Article 11, 12 and 13, it is understood that the term "Government" includes particulary but not exclusively:

  • (1) in the case of Montenegro:
    • (a) the Central Bank of Montenegro; The National Pension Fund; The Investment Development Fund; and
    • (b) any other institution wholly owned by the Government of Montenegro as may be agreed upon from time to time by mutual agreement of the competent authorities of the Contracting States.
  • (2) in the case of the United Arab Emirates:
    • (1) the Central Bank of the United Arab Emirates; Abu Dhabi Investment Authority; Abu Dhabi Invest Council;
    • (2) up to three aditional institutions shall be recognized as integral part of the Government of the United Arab Emirates through an exchange of letters between the two countries;
    • (3) any other federal or local institutions wholly owned by the Government of the United Arab Emirates as may be agreed upon from time to time by mutual agreement of the competent authorities of the Contracting States.

(2) With reference to Article 14 paragraph (5) it is understood that:

Property other than 1, 2, 3 and 4, shall include gains from alienation of shares of a company or securities, bonds, or other debentures, such gains shall be taxable only in the Contracting State in which the alienator is a resident.

(3) With respect to Article 25 paragraph (4) it is understood that:

  • (1) this paragraph shall not apply to the institutions that are wholly owned   by the Government of either Contracting State, which carry the same activities in the same circumstances and under the same condition.
  • (2) nothing in this Article imposes any legal obligation on a Contracting State to extend to the residents of the other Contracting State, the benefits of any treatment, preference or privilege are customs union, a free trade area or virtue of any regional or subregional arrangement relating wholly or mainly to taxation.

IN WITNESS WHEREOF, the undersigned, being duly authorized thereto, have signed this Convention.

DONE at Abu Dhabi, this twenty-sixth day of March 2012, in two originals, in the English, Montenegrin and Arabic languages, three originals being equally authentic.