The Tax Administration (TA) should start the procedure for the procurement of software for the system of automatic exchange of international financial information (AEOI) this or next month and is preparing documentation for that procurement.
This was officially told to "Vijesta" from PU, which is managed by the acting director Sava Laketic.
In July, the Organization for Economic Cooperation and Development (OECD) added Montenegro to the list of jurisdictions (states and territories) that do not meet tax transparency standards because it has not started automatically exchanging information between tax authorities in an effort to reduce tax evasion (AEOI), which was required to be done by the end of 2023.
AEOI refers to the automatic exchange of information between international tax authorities in an effort to reduce global tax evasion and increase tax transparency. This includes information relating to financial accounts, crypto asset data, tax rulings, cross-border arrangements and the like, of individuals and businesses.
PU did not specify when they expect to complete everything needed to start applying the AEOI.
"The goal of establishing data exchange at the global level is to prevent tax evasion through the automatic exchange of data on financial accounts between tax institutions of countries that have signed an agreement on cooperation with the OECD, among which is Montenegro. For the purposes of automatic exchange, the OECD has defined a standard that applies to entities that are residents of countries I that have implemented a common reporting standard in their national legislation. The standard defines entities that are required to submit information based on widely set criteria. One of the priorities of the Tax Administration is the implementation of the automatic exchange of data, the process of which is ongoing, that is, the preparation of documentation for the procurement of software for the system of automatic exchange of international financial information (AEOI) is in the final stage. The process of its procurement is expected during this or the next month", said the PU.
In order to implement the process of automatic data exchange as soon as possible, according to the PU, they talked with the World Bank about possible technical assistance in the form of consultants who, using best practices, will define the procedures for its implementation.
In October 2019, Montenegro signed a protocol on accession to the Multilateral Convention on Mutual Administrative Assistance in the Tax System (MCAA) with the OECD, which entered into force on May 1, 2020, and which clearly stated the need for improvement international cooperation, which includes the establishment of an information exchange system, including automatic information exchange.
In February 2023, the government adopted the Information on the need to provide budget funds for the acquisition, implementation and maintenance of the "automatic exchange of information-aeoi" information system in order to provide international administrative assistance in the area of the tax system. It is about the sum of 300.000 euros.
In July, the OECD added Montenegro to the list of jurisdictions (states and territories) that do not meet tax transparency standards because it has not started automatically exchanging information between tax authorities in an effort to reduce tax evasion, which it was required to do by the end of 2023.
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