Montenegro; Plans for more transparent collection of profit taxes

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; Plans for more transparent collection of profit taxes

The government has plans to make the collection of profit taxes in Montenegro more transparent.

The annual report by the Montenegrin competent audit state institution showed that the state budget projection has been significantly decreased and one of the main reasons for this is the unsettled corporate profit tax liabilities by entities.

In the line with the above, to prevent all occurrences of tax evasion, application of existing tax relief was underlined by the government authorities for the decree issued on deferred payment of corporate profit tax duty for legal entities.

Pursuant to this decree, an accrued liability of legal entities in Montenegro may be delayed and can be paid in six equal monthly installments. Nevertheless, in the case where the tax debt is not paid within this period, the remaining portion of the tax debt arising from the CIT is due for the immediate payment.

A request for the deferred payment of CIT needs to be submitted to the tax authority office where the company's seat is located by March 31, which is the deadline for the filling tax returns in Montenegro.

In addition, it is worth mentioning that in cooperation with (IOTA) the International Organisation of Tax Administration, Montenegro, Serbia, Slovenia, Croatia and Bosnia and Herzegovina Tax Administrations have signed, on March 17 2011, an important cooperation agreement on exchange of information and prevention of tax evasion to be able to reduce the grey economy, which is rated as the number one problem in the region.

Continued efforts and a permanent state monitoring of tax collections surely will ease the Montenegrin economy to find a way out from the hazards of economic crackdowns taking place in European markets.

Sead Dado Salkovic (sead.salkovic@eurofast.eu) and Jelena Zivkovic (jelena.zivkovic@eurofast.eu)

Eurofast Global, Podgorica/Montenegro

Tel: +382 20 228 490

Website: www.eurofast.eu

more across site & shared bottom lb ros

More from across our site

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
New French legislation should create a more consistent legal environment for taxing gains from management packages, say Bruno Knadjian and Sylvain Piémont of Herbert Smith Freehills Kramer
The South Africa vs SC ruling may embolden the tax authority to take a more aggressive approach to TP assessments, an adviser tells ITR
Indirect tax professionals now rate compliance as a bigger obstacle than technology and automation; in other news, Italy approved a VAT cut on art sales
AI-powered tax agents are likely to be the next big development in tax technology, says Russell Gammon of Tax Systems
FTI Consulting’s EMEA head of employment tax and reward tells ITR about celebrating diversity in the profession, his love of musicals, and what makes tax cool
Canadian Prime Minister Mark Carney and US President Donald Trump have agreed that the countries will look to conclude a deal by July 21, 2025
The firm’s lack of transparency regarding its tax leaks scandal should see the ban extended beyond June 30, senators Deborah O’Neill and Barbara Pocock tell ITR
Despite posing significant administrative hurdles, digital services taxes remain ‘the best way forward’ for emerging economies, says Neil Kelley, COO of Ascoria
Gift this article