Law on the Write-Off of Interest on Due Tax Liabilities

The Parliament of Montenegro has adopted the Law on the Write-Off of Interest on Due Tax Liabilities.

This law regulates the write-off of calculated but unpaid interest on tax liabilities, which are the revenue of the Budget of Montenegro, due for payment by December 31, 2024.

The right to write off interest on tax liabilities can be granted to a tax debtor who:

1. submits all tax returns due by December 31, 2024; and
2. pays the principal tax debt in full within 60 days from the date of the law’s implementation.

The right to write off interest can also be granted to a tax debtor whose tax debt has been rescheduled in accordance with the Law on the Rescheduling of Tax Liabilities (“Official Gazette of Montenegro”, No. 145/21) and the Decree on the Conditions for Postponing the Collection of Tax and Non-Tax Liabilities (“Official Gazette of Montenegro”, No. 57/18) – only for tax liabilities where the principal tax debt has been fully paid. Tax liabilities are considered to be taxes, fees, contributions, levies, and other monetary obligations established by tax regulations, whose collection and control are carried out by the administrative authority responsible for tax affairs.

The tax debtor exercises the right to write off interest based on a request for interest write-off submitted to the competent tax authority according to the place of registration of the tax debtor, within 60 days from the start of the law’s implementation. The form for the request is prescribed by the state administrative body responsible for financial affairs.

This law was published in the “Official Gazette of Montenegro” No. 88/2024 on September 13, 2024, and will enter into force on the eighth day following its publication in the “Official Gazette of Montenegro.” It will be applicable from January 1, 2025.