PITANJE    Dear Zoran, We are interested in purchasing a lot in Budva with the intention to develop an apartment complex. Before we proceed with forming a company in Montenegro we would need to consult with someone who is knowledgeable with the tax laws and regulations in that country. Specifically we need confirmation with the following: 1. That the tax rate is 9% for company profits 2. Is there a withholding tax in Montenegro for dividends paid to foreign owners?. If yes, what percentage rate is the withholding tax on dividends:     a) for Canadian companies that own a registered company in Montenegro,     b) for Cyprus companies that own a registered company in Montenegro,     c) for foreign individuals/persons that wona registed company in Montenegro. We are hoping that you can put us in touch with a professional who can advise and consult us. We plan to go very soon to Crna Gora and proceed with our plans so would greatly appreciate it if you could assist us in making contact as soon as possible. Thank you very much for your help. Best regards, Seka Kovacevic Montreal, Canada     ODGOVOR      RE 1) Yes, tax rate is 9% on corporation profit, where the investments are free of taxation up to the certain percentage. RE 2) There is a witholding tax which is in the level of more than 90% (same as for the residents of Montenegro) which is a very disadvantageous solution. There are other modes which are applied in practice while salaries are formed on a minimum level. RE 3) The best solution is establishing a new company and by no means the Part of a foreign company so that it will be absolutely unimportant whether it will be a person or legal entity, that is, from which country will it come from. If you wish so, me and my associates can help you with the process of establishing the company, with consultations, and we can especially brief you with the real estate market on Montenegrin coast and in Budva as well. I would ask you to precisely express yourselves regarding your intentions and your specific needs. Yours sincerely, Miodrag Šestovic Director MONTE VERDE DOO Kotor 85330 Tel. +381 67 350 380        +381 82 334 477 E-mail: euras@cg.yu