Montenegro: Tax debt payment plan introduced in Montenegro

International Tax Review is part of Legal Benchmarking Limited, 1-2 Paris Garden, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

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

Montenegro: Tax debt payment plan introduced in Montenegro

petrovic.jpg

Ivan Petrovic

Montenegro's Ministry of Finance and Tax Administration have created a new incentive in the tax system for companies with tax debt.

The programme will facilitate the payment of debt related to corporate income tax, personal income tax, social contributions, VAT and tax on real estate.

The relevant law, concluded on December 31 2016, provides the ability to pay tax debts in up to 60 instalments, with the requirement that the first payment amounts to 10% of the total debt. A very important aspect of the Act is that the dynamics of settling the tax debt (basically the number of monthly instalments) is proposed by the taxpayer.

The interest due for the debt and the costs of the procedure will be written-off for all taxable persons who will repay their debts in this manner. Subsequently, the reported liabilities will be taken in account as ongoing debt.

The Ministry of Finance will announce a public invitation in relation to the programme, available until March 31 2017. The deadline for submitting applications will be the 45th day after publishing the public invitation.

Applications need to include the taxpayer's name, registration number, address and the proposal of the payment method for the tax obligations. The tax administration will have a 60 day timeframe to respond to applications. Following acceptance, the first payment will need to be completed within 90 days.

A minimum threshold of tax debt is set for companies to be eligible for the instalments payment programme. Companies with up to five employees have a threshold of €100 in debt, while companies with the number of employees ranging from six to 50 must have a tax debt exceeding €500 in order to be considered. For larger companies with more than 50 employees, the threshold has been set at €1,000.

The tax administration has invited all taxpayers who have reported tax debt to respond to the public invitation and to use this opportunity to repay tax debts instalments, with the write-off of interest and litigation costs in connection with the tax claim.

Ivan Petrovic (ivan.petrovic@eurofast.eu)

Eurofast Montenegro

Tel: +382 20 228 490

Website: www.eurofast.eu

more across site & shared bottom lb ros

More from across our site

Wim Wuyts, who had been head of the specialist tax network since 2017, is moving on to a new role with WTS’s Belgian member firm
MNEs are increasingly using algorithmic tools in TP. Sahasranshu Dash argues that data ethics should therefore plug directly into the TP design process
The Institute of Chartered Accountants in England and Wales also queried whether HMRC resources could be better spent scrutinising larger entities
Grant Thornton’s Austria tax head likens his practice to an escape room, shares his football coaching ambitions, and explains why tax is cool
Awards
ITR is delighted to reveal all the shortlisted nominees for the 2025 EMEA Tax Awards
Awards
ITR is delighted to reveal all the shortlisted nominees for the 2025 Asia-Pacific Tax Awards
The fates of pillars one and two hang in the balance after the US successfully threw its weight around in G7 and Canadian negotiations
Rafael Tena tells ITR about the ‘crazy’ Mexican market, ditching the hourly rate, and refusing to grow his fledgling firm in an ‘unstructured way’
It should be easy for advisers to be transparent about costs, Brown Rudnick partner Matthew Sharp said in response to exclusive ITR in-house data
The sprawling legislation phases out Joe Biden-era green tax incentives for businesses; in other news, the UK will reportedly maintain its DST despite US pressure
Gift this article