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No income tax returns without a digital certificate

Income tax report that is to be submitted with final account by March 31st must be submitted to the Tax Administration with a digital certificate. This change came in force with amendments to the Law on Income Tax of Legal Entities, Pobjeda daily writes.

Although digital certificate has been in use for ten years, this year it became obligatory for all legal entities, Tax Administration explained. Post Office of Montenegro is authorized for issuing the certificate.  Entity that applies for a certificate must be authorized in Central register of commercial subjects. Still, Tax Administration allows the possibility that an authorized accountant submits the report with their own certificate.

Although this amendment could seem as further burden to Montenegrin businessman, Tax Administration does not see it as such.

“Electronic services are there to decrease the work for both taxpayers and tax officials, by making the procedure simpler and saving time. Chances of error are decreased as well”, they said.

Not everyone has this obligation, as legal entities that are in the process of ceasing registration can submit this documentation in paper form. The same applies for tax reports for income before 2010. Law on Income Tax of Legal Entities stipulates that digital certificates do not need to be submitted by state institutions, local administration, public funds and institutions, tourist organizations, sport clubs and associations, religious communities, art societies, political parties, syndicates and NGOs, unless they work for profit.

Taxpayers have the possibility to have tax decreased by 6% if they submit their reports by March 31st this year. Should they fail to respect the deadline, punishment fee could be from 550 to 16,6 thousand EUR.

1.600 digital certificates issued since the beginning of the year

According to Monstat, there were 26 thousand commercial subjects in Montenegro in 2015, while, according to the Post Office, 4.900 different types of certificates were issued during the last year. In January, there were 497 certificates issued, and in February 1.053. Digital certificates are valid for three years, and Post Office enables possibility of buying in three yearly rates. There is a fee of 60 EUR when submitting documentation, and after first and second year, this fee is 25 EUR.

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