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Following the announcement of set of economic measures aiming at addressing expected negative impact of COVID-19, Government of Montenegro adopted the Decree on Conditions for Deferral of Tax and Non-tax Receivables (hereinafter: “the Decree”).
The Decree was published in the Montenegrin Official Gazette as of 31 March 2020 and starts to apply as of 31 March 2020.
The Decree prescribes possibility for taxpayers who are unable to settle their tax liabilities due to the negative impact of COVID-19 on businesses, to be granted 90 day deferral for payment of tax and non-tax liabilities due for payment during March, April and May 2020.
The Decree does not apply to state administration, administration of the local municipalities, local municipalities, public institutions, independent regulatory bodies, as well as state owned companies and legal entities in which the state or local Municipalities have a majority ownership stake, which do not operate on market principles.
Tax and non-tax liabilities covered under the Decree encompass the following:
- Personal Income Tax (hereinafter: “PIT”),
- Mandatory Social Security Contributions (hereinafter: “SSC”), and
- Liabilities under agreed reprogram for payment of taxes due in prior period(s).
The Decree proscribes form for deferral of above tax and non-tax liabilities. Taxpayer opting for deferral can file prescribed form with the relevant Tax Authority in hard copy or electronically via designated app at Tax Authorities web page.
In line with information presented on the web page of the Montenegrin Tax Authorities, all employers submitting monthly PIT and SSC returns (IOPPD Forms) during application of the Decree will need to confirm whether they opt for deferral of payment of PIT and SSC disclosed in IOPPD form in order to be able to submit and sign off on return submitted.
Annual PIT return – new filing deadline
Montenegrin Tax Authorities published information on extension of deadline for filing of the Annual PIT Return (GPPFL Form) for 2019.
Initial filing deadline (30 April 2020) was extended for 15 days. New filing deadline is 15 May 2020.
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