The Ministry of Finance of Montenegro and the Tax Administration
of Montenegro have created a new program in the current tax system
by way of tax incentive for companies with tax debt. The newly
introduced program will facilitate 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 31st 2016, provides the
ability to pay tax debts in up to 60 installments, with the
requirement that the first payment amounts to 10 percent of the
total debt. A very important aspect of the act is the fact that the
dynamics of settling of the tax debt (basically the number of
monthly installments) in proposed by the taxpayer.
The interest due for the debt as well as 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 program until the end of March 2017. The deadline
for submitting applications will be the 45th day after the
publishing of the public ad.
Applications need to include the taxpayer's name,
registration number, address and the proposal of on the payment
method for the tax obligations. The tax administration will have a
60 day timeframe to respond to applications. Following the
acceptance, the first payment will need to be performed within 90
A minimum threshold of tax debt is set for companies therefore
conditioning the eligibility for the installments payment program.
Companies with up to 5 employees have a threshold of EUR 100 in
debt while companies with number of employees ranging from 6 to 50
must have a tax debt exceeding EUR 500 in order to be
considered. For larger companies with more than 50 employees
this amount has been set at EUR 1,000.
The tax administration has invited all tax payers who have
reported tax debt to respond to the public invitation and to use
the possibility of debt repayment in installments with the
write-off of interest and litigation costs in connection with the
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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