Amendments on the Corporate Income Tax Return in MNE | KPMG | ME

New Rulebooks (VAT and withholding tax)

New Rulebooks (VAT and withholding tax)

Ministry of Finance adopted the Rulebook on the Amendments to the Rulebook on Application of the VAT Law, as well as the Rulebook on the Form and the Content of Report on Assessed and Paid Withholding Tax on Income Earned by Resident and Nonresident Legal Entity (Official Gazette of Montenegro no 84/2017;

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Please note that the Montenegrin Ministry of Finance adopted the Rulebook on the Amendments to the Rulebook on Application of the VAT Law, as well as the Rulebook on the Form and the Content of Report on Assessed and Paid Withholding Tax on Income Earned by Resident and Nonresident Legal Entity (Official Gazette of Montenegro no 84/2017; hereinafter: Rulebooks).

The provisions of abovementioned Rulebooks are effective from 23 December 2017.

Please find below the most important amendments introduced by abovementioned Rulebooks.     

Rulebook on the Amendments to the Rulebook on Application of the VAT Law

The most important change introduced by this rulebook is requirement for Montenegrin VAT payers invoicing service fees to foreign VAT payers, as defined by provisions regulating place of supply of services (so called B2B supplies), to obtain proof of registration of service recipient in the foreign state.

Moreover, Montenegrin service provider should state the following note on invoices for B2B supply of services to foreign service recipients: ” VAT liability is transferred to service recipient”.

Lastly, this new Rulebook clears contradiction in application of place of supply of services caused by mismatch between rules prescribed by previous Rulebook and current VAT Law.       

Rulebook on the Form and the Content of Report on Assessed and Paid Withholding Tax on Income Earned by Resident and Nonresident Legal Entity. 

Requirement for submission of Report on Assessed and Paid Withholding Tax is extended to payments performed not only to nonresident legal entities, but to all persons (legal entities and individuals), irrespective of residence of such persons (i.e. resident and nonresident persons).

Please feel free to contact us for any questions you might have in relation to respective Rulebooks.

 

KPMG Tax & Legal Department

KPMG d.o.o. Podgorica
Svetlane Kane Radević
381000 Podgorica
Montenegro

Office: +382-20-201-480

tax@kpmg.rs

www.kpmg.com/me

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