Montenegro's Deemed Arm's Length Interest Rate for 2026

Montenegro has set the deemed arm's length interest rate for 2026 at 4.97%. Under the country's transfer pricing rules, taxpayers may use the deemed rate as the arm's length rate for related party loans or determine the arm's length rate (or rate range) for a loan by applying the allowed transfer pricing methods, supported by documentation. Interest exceeding the arm's length rate, deemed or otherwise, is generally not deductible.