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.
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