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Montenegrin Government has adopted the Decree on the collection of tax from taxpayers' property (Official Gazette of Montenegro no 58/2017; hereinafter: the Decree).
The provisions of the Decree are effective from 30 September 2017.
The aim of the Decree is to regulate the manner for settlement of tax liabilities via the property of taxpayers in accordance with Article 17 Paragraph 1 of the Montenegrin Budget Law for 2017.
Tax debt
The Decree defines a tax debt as an amount of tax liabilities including charges, contributions and other tax levies (both principal and related interest) representing revenue of the Montenegrin budget exceeding EUR 100 thousand.
Taxpayer’s property
Taxpayer’s property for the purpose of the Decree is considered to be:
- a residential-office building;
- a residential unit; and
- a business building (commercial or industrial).
Request for payment of a tax debt
A request for the payment of a tax debt (hereinafter: the Request) is submitted to the Tax Authorities.
The Decree prescribes both the content of the Request as well as the documents that need to be filed along with the Request.
The Request may be submitted from 29 November 2017 (60 days from entry into force of the Decree).
The Tax Authorities forward the request and accompanying documentation to the Ministry of Finance for approval no later than 15 days from the day of receipt of the request.
The Ministry of Finance needs to obtain the Government’s consent to a proposed collection of the tax debt.
Agreement with the Ministry of Finance
Settlement of a tax debt via the transfer of ownership over the property of a taxpayer is executed on the basis of a contract signed with the Ministry of Finance (hereinafter: the Agreement).
The Agreement should be concluded no later than 10 days from the obtaining of Government approval. All costs arising from the execution of the Agreement are borne by the taxpayer, except the real estate transfer tax.
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