Who is a taxpayer in Montenegro

This text is informational in nature. To confirm whether or not you qualify as a taxpayer, please request an opinion from our legal department, as this involves a precise interpretation of the law and depends on the specific activity you are engaged in.

Who is obliged to pay tax

A taxpayer is a person or organisation subject to corporate profit tax (legal entities). A taxpayer is any person who independently carries out any of the following activities at any location:

any production activity
trade and service activities
mining
agriculture
and other professional activities
the use of tangible and intangible assets (property rights) for the purpose of generating ongoing income is considered a business activity, and such legal entities are taxpayers

A taxpayer is also a person who occasionally performs an activity involving the supply of newly constructed buildings or parts of buildings. (More detailed criteria for what is considered such an activity will be set by regulation of the Ministry of Finance.) A taxpayer is any person who imports goods on their own account, or receives goods from abroad, as well as the person on whose account the goods are imported. State bodies and organisations, local self-government bodies and other public-law entities are taxpayers if they supply goods or services that, under the Value Added Tax Act, are taxable when supplied by other taxpayers. Taxpayers also include all those engaged in: a) services relating to admission to cultural, artistic, scientific, educational, sporting, entertainment and similar events (fairs, exhibitions, etc.), including ancillary services related to attending such events, as well as the services of the organisers of such events, when provided to a person who is not a taxpayer; b) ancillary transport services such as loading, unloading, transhipment, warehousing and other services customarily connected with transport, when provided to a person who is not a taxpayer; c) services of providing expert opinions on the valuation of movable property, or work on movable property, provided to a person who is not a taxpayer; d) services of supplying food and beverages for on-site consumption, except where these services are provided on vessels, aircraft or trains, in which case the place of supply is deemed to be the place of departure of the passenger transport.

Non-taxpayers

State bodies and organisations, local self-government bodies and other public-law entities, when performing activities as part of their public functions, are not considered taxpayers if taxes, fees, contributions and other levies are collected in connection with those activities. Political parties, trade unions and chambers are not considered taxpayers when performing tasks within the scope of their authority. Note: A taxpayer who carries out a supply of goods or services on which VAT is calculated and paid is considered a tax debtor.

Tax avoidance

Failing to pay taxes means the taxpayer is breaking the law. The illegal practice in which a taxpayer intentionally avoids meeting their tax obligations is called tax evasion. In the case of tax evasion, the taxpayer becomes subject to criminal charges and penalties. Tax evasion includes any failure to declare income, understating the amount of tax owed, or providing false information to the tax authority about business income and expenses. Using lawful methods to adjust a person's financial situation in order to reduce the amount of income tax payable is tax avoidance, which is different from tax evasion. Source: Wikipedia

Who is a taxpayer

Who is obliged to pay tax

Non-taxpayers

Tax avoidance

Ready for a concrete offer?