The Law on Waiving Interest on Due Tax Obligations has been published in the Official Gazette of Montenegro. It took effect on September 21 and will be implemented starting January 1, 2025.
According to the Tax Administration, this law, alongside the previously introduced tax debt restructuring program, is part of the measures taken by the Ministry of Finance and the Tax Administration to enhance the management of tax debts. It aims to encourage timely tax payments and support taxpayers in settling their overdue obligations despite business challenges.
Under this law, taxpayers who submit all tax declarations due by December 31, 2024, and settle their principal tax debt within 60 days from the law’s implementation will be eligible for interest waivers on these tax liabilities.
The tax obligations eligible for interest waiver include taxes, fees, contributions, and other financial payments established by tax regulations, all of which are overseen by the Tax Administration.
Taxpayers can exercise this right by submitting a request to the relevant tax authority based on their registered location within 60 days from the law’s implementation. Following this, the Tax Administration will make decisions on these requests.
The format for the interest waiver request will be prescribed by the Ministry of Finance within 60 days of the law taking effect.
Additionally, the tax authority will automatically issue a decision to waive interest for taxpayers who, as of December 31, 2024, have accrued interest but no recorded principal tax debt.
This law also allows local tax authorities to legislate similar interest waivers for local taxes, fees, and charges within six months of the law’s enactment.
The Tax Administration emphasizes that collecting tax receivables and reducing tax debt will remain a top priority, with ongoing efforts to facilitate taxpayer compliance.
It is anticipated that many taxpayers will take advantage of this new law to settle their obligations and eliminate interest, which significantly contributes to the overall tax debt.
