The Tax Administration (TA) received 849 requests for the write-off of interest on tax debt, in accordance with the Law on the Write-off of Interest on Overdue Tax Liabilities, which has been in effect since January 3 of this year.
According to the data provided to "Vijesti" by the Police Inspectorate, the total amount of interest for the write-off is 4,23 million euros, while 9,1 million euros of debt has been paid based on these requests.
Taxpayers have the opportunity to submit a request for interest write-off until March 2, 2025, and the Tax Administration is obliged to decide on each request within 30 days.
This relief applies to all due tax liabilities (taxes, fees, contributions, fees and other monetary benefits...) that are due for payment by the end of December 2024. The law was proposed by the Ministry of Finance, headed by the Minister Novica Vuković.
The Police Department said that the data on submitted requests refers to the period from January 3 to February 14.
"Based on Article 114 of the Law on Administrative Procedure, the Tax Administration has 30 days from the date of submission of the request to issue a decision on accepting or rejecting the request if the taxpayer, in accordance with the legal provisions of the Law on the Write-off of Interest on Due Tax Liabilities, does not meet the conditions for the write-off of interest. Taxpayers may submit a request for the write-off of interest in accordance with Article 4, paragraph 2 of the Law on the Write-off of Interest on Due Tax Liabilities to the competent tax authority according to the place of registration of the tax debtor within 60 days from the date of application of this law, i.e., ending with March 2 of this year," the Tax Administration said.
The total tax debt in Montenegro at the end of 2024, according to the Tax Administration, amounted to 664,9 million euros, which is an increase compared to the end of 2023, when the debt was 591,7 million euros.
"Of which the principal debt is 402.986.284,13 euros, and the interest is 261.957.236,99 euros. For 2023, the principal debt is 363.394.478,08 euros, and the interest is 228.302.771,99 euros," said the Public Prosecutor's Office, which is headed by the acting director. Sava Laketic.
Comparing the amount of interest on received requests for write-off with the total tax debt at the end of 2024, which amounts to 664,9 million euros, of which interest alone accounts for 261,9 million euros, it is evident that taxpayers' interest in this measure is relatively low, as requests so far cover only 1,6% of the total amount of interest debt.
When asked how they assess the effects of implementing this law based on the number of requests received for the write-off of interest on tax debt, the Tax Administration said that they cannot yet make an assessment until the deadline for submitting requests has expired.
"The goal of implementing the Law on the Write-Off of Interest on Overdue Tax Liabilities is to reduce the total debt and improve liquidity in order to ensure long-term financial stability. This law gives taxpayers the opportunity to have their interest written off if they fully repay the principal debt. We would like to emphasize that we are satisfied with the dynamics of the implementation of the aforementioned law, but we cannot yet assess its effect until the deadline for submitting applications expires.
"Vijesti" asked the Tax Administration for information on how much money it collected in total last year based on tax debt and how much that compared to 2023. However, instead of an answer to that question, data on the total gross revenue collection for 2024 was provided.
"In the period from January 1 to December 31, 2024, the Tax Administration achieved gross tax revenue collection of EUR 1,607 billion, which is EUR 189 million (or 13%) more than in the same period last year. The collection achieved is EUR 85 million (or 5,6%) above the revenue plan," the Tax Administration said.
At the end of last year, the Tax Administration told "Vijesti" that despite the Law on Interest Write-Off, they continued with the forced collection of tax debt.
"Given that we do not know which taxpayers will be interested in the interest write-off and submit a request, with the condition that they must submit all unfiled tax returns with a due date of December 31, 12 and pay the amount of the principal debt due on December 2024, 31, the Tax Administration has been implementing forced collection measures continuously in accordance with the Tax Administration Law. The Interest Write-Off Law does not limit the application of the Tax Administration Law for taxpayers who do not comply with the legal provisions and do not pay their tax obligations within the legally prescribed deadlines until the law enters into force and the date of its application," the Tax Administration explained.
As they stated, for taxpayers who submit a request and do not pay the amount of the basic debt and therefore do not comply with the provisions of the Law on write-off of interest, compulsory collection measures will be applied.
DPS-led governments have twice previously proposed a legal solution for writing off interest on tax debts.
The most owed are taxes and contributions on personal income.
In the total tax debt, the largest amount is the debt for taxes and contributions on the income of individuals, in the total amount of 372.377.932,02 euros.
"Of this debt, the principal debt amounts to 225.541.444,24 euros, and the interest amounts to 146.836.487,78 euros," the Police Department said.
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