From January 1, Montenegro can write off interest on overdue tax liabilities

23.09.2024. / 16:31

PODGORICA – The Law on write-off of interest on overdue tax liabilities will begin to be applied from January 1, 2025, announced the Tax Administration (TA) of Montenegro.

The law was published in the Official Gazette of Montenegro on September 13, and entered into force on September 21, the Mina agency announced.

“The law on the write-off of interest on overdue tax liabilities, along with the previously implemented reprogramming of tax claims, is another of the measures that the Ministry of Finance and PU are undertaking with the aim of more efficient management of tax debt, encouraging more orderly settlement of tax liabilities, and providing support to taxpayers so that, despite difficulties in business, settles due tax obligations in accordance with the Law”the announcement states.

That law stipulates that taxpayers who submit all tax returns that are due by December 31 of this year and within 60 days from the date of application of the law as a whole settle the basic tax debt, will be able to write off the interest on the said tax claims.

Tax liabilities to which the right to write off interest applies include taxes, fees, contributions, fees and other monetary payments determined by tax regulations, the collection and control of which is carried out by the PU.

“Taxpayers, after settling the tax liability, can use the said right by submitting a request to the competent tax authority according to the place of registration of the tax debtor within 60 days from the beginning of the application of this law, after which the PU will decide on these requests by means of a decision”explained from PU.

The form of the request for the write-off of interest on tax claims will be prescribed by the Ministry of Finance within 60 days from the date of entry into force of the law.

Also, the tax authority will ex officio issue a decision on the write-off of interest for tax debtors who have accrued interest on December 31 of this year, but have not recorded the basic tax debt.

“According to this legal solution, the right to write off interest for overdue tax liabilities arising from local taxes, fees and charges introduced by the local self-government may be prescribed by its competent authorities by adopting regulations within six months from the date of entry into force of this of the law”explained from PU.

The collection of tax claims and the reduction of tax debt represent the most important task of the PU, which will be given special attention in the coming period, which is why, as stated in the announcement, the PU hopes that as many taxpayers as possible will use this legal solution to settle their tax obligations. , and at the same time the interest, which makes up a significant part of the total tax debt, is waived.