Depreciation of Fixed Assets by Groups and Methods

The Ministry of Finance has adopted the Rulebook on Amendments to the Rulebook on Determining Depreciationof of Fixed Assets by Groups and Methods

(“Official Gazette of Montenegro”, No. 118/24 dated 11.12.2024).

This rulebook amends the Rulebook on the Classification of Fixed Assets by Groups and Methods for Determining Depreciation (“Official Gazette of the Republic of Montenegro”, No. 28/02 and “Official Gazette of Montenegro”, No. 130/21), specifically in Article 4, which deals with the classification of fixed assets by groups and depreciation rates – detailed in the attached table.

In Article 11, paragraph 1, the following amendment has been made:

Article 11
Depreciation of intangible assets such as: concessions, patents, copyrights, franchises, and other rights is carried out using the proportional method based on the lifespan of these investments.
In the case of intangible assets such as: concessions, patents, copyrights, franchises, and other rights, the depreciation expense is recognized in the amount of accounting depreciation.
The basis for calculating depreciation in paragraph 1 of this article consists of investments for the development and acquisition of such assets.
In the case of fixed assets leased with the right of use for more than one year, and which are recognized as assets according to the accounting regulations of the lessee, the depreciation expense is recognized in the amount of accounting depreciation.

The AO Form has also been amended.

This rulebook enters into force on the eighth day from the date of publication in the “Official Gazette of Montenegro.”