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New Amendments to the Set of Tax Laws

New Amendments to the Set of Tax Laws

Montenegro
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At the extraordinary session of the Parliament of Montenegro held on February 28, 2023 a set of tax acts was adopted. The Parliamentary Committee for Economy, Finance and Budget of Montenegro has given its support for introducing aforementioned acts, which will result in higher budget revenues for the state through higher taxation and the introduction and change of excise duties on certain products.

At Official Gazette of Montenegro no. 27/23 on March 8, 2023 have been published:

  • Amendments to the Law on Budget and Fiscal Responsibility ;
  • Amendments to the Law on Prevention of Illegal Business Operations and
  • Amendments to the Law on Excise.

At Official Gazette of Montenegro no. 28/23 on March 10, 2023 have been published:

  • Amendments to the Law on Profit Tax of Legal Entities, and
  • Amendments to the Real Estate Transfer Tax Law.

Under the Amendments to the Law on Prevention of Illegal Business, loans between legal entities or legal entities and entrepreneurs or individuals are conditioned under the obligation of previous settling of tax obligations.

One of the more notable changes includes Amendments to the Law on Income Tax of Legal Entities concerning taxation on income of non resident legal entities, which means stronger taxation in the form of withholding tax.

Amendments to the Real Estate Transfer Tax Law will be applicable from January 1, 2024. The property transfer tax rate will be progressive, and the rate of 3% will apply on the real estate with estimated market value less than €150,000, but for the property with estimated market value over € 150,000 the property transfer tax shall be calculated at the amount of € 4.500 plus 5% of the amount over € 150.001.

By Daniel Vujacic, Associate, Vujacic