All material subject to strictly enforced copyright laws. © 2022 ITR is part of the Euromoney Institutional Investor PLC group.

Montenegro: Electronic submission of tax returns becomes mandatory in Montenegro

petrovic.jpg

Ivan Petrovic

According to the amendments to the Law on Corporate Income Tax Law, which will be applicable as of January 1 2017, taxpayers will be obliged to submit their annual tax declaration and tax returns electronically through the tax administration portal.

This move builds on the digital certificates that have been in use in Montenegro since 2010, enabling the electronic signing of documents in a fast, easy and safe manner. The digital signature has the same legal effect as a handwritten signature and is acceptable as evidence.

There are two certification institutions in Montenegro:

  • The ministry that issues digital certificates for the purposes of state administration; and

  • The Posthouse, a public certification institution for citizens and companies.

In order to be able to complete the electronic submission of tax forms and returns, taxpayers have to possess a digital certificate issued by the Posthouse certification body.

The process of obtaining this digital certification takes place independently of the tax administration and it is defined by the rules and procedures set by the certification institution. The administrative cost of obtaining a digital certificate (e-token) is around €110 ($117).

It is worth noting that the certificate holder must be the legal entity's authorised person registered in the Central Register of Insured Persons (CROO) maintained by the tax administration.

It is expected that the introduction of the mandatory electronic submission of tax returns will reduce the burden both for taxpayers and for tax officials, as well as simplify administrative procedures and reduce the possibility of erroneous data entry. Therefore, it is presumed that this will be an additional step towards strengthening the accuracy and precision of the tax administration's database.

Ivan Petrovic (ivan.petrovic@eurofast.eu)

Eurofast Montenegro

Tel: +382 20 228 490

Website: www.eurofast.eu

more across site & bottom lb ros

More from across our site

The companies have criticised proposals for the gig economy, while the UK and EU VAT gaps have fallen in percentage terms, and ITR speaks to a European Commission adviser about its VAT reforms.
Corporations risk creating administrative obstacles if the pillar two rule is implemented too soon, sources say.
Important dates for the Women in Business Law Awards 2023
The Italian government published plans to levy capital gains tax on cryptocurrency transactions, while Brazil and the UK signed a new tax treaty.
Multinational companies fear the scrutiny of aggressive tax audits may be overstepping the mark on transfer pricing methodology.
Standardisation and outsourcing are two possible solutions amid increasing regulations and scrutiny on transfer pricing, say sources.
Inaugural awards announces winners
The UN’s decision to seek a leadership role in global tax policy could be a crucial turning point but won’t be the end of the OECD, say tax experts.
The UN may be set to assume a global role in tax policy that would rival the OECD, while automakers lobby the US to change its tax rules on Chinese materials.
Companies including Valentino and EveryMatrix say the early adoption of EU public CbCR rules could boost transparency of local and foreign MNEs, despite the short notice.