The Government of Montenegro has determined the proposal for the law restructuring tax claims of the local self-government units, funds, public enterprises and commercial entities established by municipalities, with an aim of facilitating tax settlements and stabilising public finances at the local level, the Government website says.
The proposed law regulates the conditions and procedures for exercising the right to reschedule due but unpaid tax and non-tax claims.
According to the proposal for the law, the restructuring applies to liabilities arising from value-added tax (VAT), corporate income tax and personal income tax, as well as contributions for pension and disability insurance, health insurance, unemployment insurance and obligations towards the Labour Fund.
The right to restructuring debt will be granted to municipalities, funds, public institutions and local enterprises performing activities of public interest that, by the time the law enters into force, have due and unpaid liabilities.
Excluded from the restructuring mechanism are entities that have failed to submit tax returns or whose activities distort market competition.
“The law determines that tax debt can be paid in up to 120 equal monthly instalments, depending on the amount of debt, with the possibility of a full write-off of interest and procedural costs. The minimum monthly instalment can’t be less than €1.000,” the Government said.
