The Law on write-off of interest on overdue tax obligations

Starting January 1, 2025, taxpayers in Montenegro can take advantage of significant relief thanks to the new Law on the Write-Off of Interest on Due Tax Obligations.

This law allows for the cancellation (write-off) of accrued interest on all unpaid tax obligations that became due up to December 31, 2024.

WHO IS ELIGIBLE FOR INTEREST WRITE-OFF?

To qualify, a taxpayer must meet two conditions:

1. Submit all tax returns due by December 31, 2024.
2. Pay the principal tax debt within 60 days from the date the law enters into force.

These conditions also apply to debtors with reprogrammed debts.

Interest is written off exclusively for obligations where the principal debt has been fully settled.

WHICH OBLIGATIONS ARE COVERED?

The law applies to:

• Taxes
• Fees
• Contributions
• Charges and other monetary dues

…that are subject to control and collection by the competent tax authority.

PROCEDURE TO EXERCISE THE RIGHT

• The debtor submits a request to the tax authority in their place of registration.
• The deadline for submitting the request is 60 days from the start of the law’s application.
• The application form is prescribed by the Ministry of Finance.

WHAT IF YOU DO NOT MEET THE CONDITIONS?

If the principal debt is not paid within the prescribed period, the request for write-off will be rejected. In such a case, the debtor has the right to appeal to the competent financial authority.

AUTOMATIC WRITE-OFF FOR CERTAIN DEBTORS

For taxpayers who, as of December 31, 2024, have only accrued interest recorded (without any principal debt), the Tax Administration will, ex officio, issue a decision on write-off – without the need to submit a request.

This new law gives taxpayers the opportunity to start 2025 with a clean financial balance and make it easier to manage their obligations.