Montenegro: Low capital investments and increase in tax revenue in 2013

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

Copyright © Legal Benchmarking Limited and its affiliated companies 2026

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

Montenegro: Low capital investments and increase in tax revenue in 2013

zivkovic.jpg

Jelena Zivkovic

According to the annual budget adopted late December, for the current year the government is planning for €1.26 billion ($1.68 billion) and foreseeing various increases in tax revenues. The planned budget deficit is expected to reach 2.73% of the GDP while the planned GDP growth rate has been set at 2.5%.

To realise all development plans to support planed growth, the government will take additional €250 million of financial credit funds.

One of planned measures for increasing tax revenues is raising the tax rate on salaries from 9% to 15%. Additional savings of €30 million are planned by freezing pensions in 2013.

The business community has been reacting generally negatively to the planned allocation of only €65 Million for capital investments of which €33 million will be spent on infrastructure projects.

The tax revenue is estimated to reach the levels of approximately €1.08 billion. This will largely be a result of the expected increase in VAT revenue collection. The government justifies this growth by the expected increase in exports and imports as well as the relative stabilisation of spending.

Jelena Zivkovic (jelena.zivkovic@eurofast.eu)

Eurofast Global, Podgorica Office, Montenegro

Tel: +382 20 228 490

Website: www.eurofast.eu

more across site & shared bottom lb ros

More from across our site

As AI becomes increasingly intuitive and idiot-proof, its tax applicability is becoming impossible to overstate
New data on public CbCR showed uneven adoption, as Singapore advanced pillar two compliance and firms expanded their tax capabilities
Nearly two years after its publication, the Corporate Tax Roadmap is reshaping the UK’s TP framework through incremental reforms focused on scope, transparency and earlier HMRC intervention
With a stark divergence between MNEs that prepared early and those rushing to catch up, advisers must remain agile with all manner of compliance risks
The EU agreed new cooperative and investigative measures to tackle VAT fraud, while Hungary faced legal action and Lavez Coutinho expanded its indirect tax team
The arrival of a team from Brazilian rival Costa Tavares Paes Advogados brings SiqueiraCastro’s tax headcount to seven partners and 30 associates
CSR initiatives can sometimes venture into virtue signalling, but Ryan’s tax literacy event for schoolchildren was a genuine and necessary endeavour
Grant Thornton advanced plans to integrate its Australian firm into its US arm, as tax developments spanned law firm hires, aviation levies and digital services taxes
A new focus on early intervention and increased AI use is transforming how tax authorities are approaching TP audits, though capacity-constrained jurisdictions risk falling behind
The French administration has used AI to detect undeclared swimming pools and verandas but always includes a human in the loop, the AI in Tax Forum heard
Gift this article