TAX & LEGAL STRUCTURING

Problems with the tax laws may occur in any part of your business.

The carefully planned tax policy of the company creates large tax savings, and for that reason, the tax planning of every business transaction is very important. Our services eliminate or reduce any potential tax risk and allow the achievement of maximum tax efficiency both in the short and long periods.

Our team performs tax consulting, tax control and VAT control. We apply expertise in tax, law, and finance, and provide comprehensive tax services for legal entities and individuals. Our service is completely devoted to a special approach to every business partner. Thus, your interlocutor is an expert informed about your company details and specifics of your business.

Restructuring

Companies must be able to change their legal form, outsource, reorganize, or transfer operations, merge with other companies or terminate existing joint ventures quickly, easily and with a minimal tax burden.

With that goal in mind, EU lawmakers and national legislators created regulations that, in most cases, enable the tax-neutral performance of such procedures. These procedures are summarized as restructurings. However, there are a number of requirements and legal regulations to be met in order for the aforementioned procedures to be tax neutral.

To help you choose the optimal approach and implement it quickly and cost-effectively, we provide restructuring solutions for:

• National and cross-border mergers
• Transformations
• Insertions
• Fusions
• Asset splits
• ​Divisions

Recent Regulatory and Tax Changes in Montenegro

As you navigate the complex landscape of tax and legal structuring, staying updated on the recent tax and regulatory amendments in Montenegro is crucial. Here are some of the notable changes:

Transfer Pricing Documentation

Effective from 10 March 2023, amendments to the tax law necessitate the inclusion of transactions between a Montenegrin branch office and its non-resident headquarters in the transfer pricing documentation​.

Amendments to Individual and Corporate Income Tax Laws

Enacted on 30 December 2022, significant amendments to the individual and corporate income tax laws came into effect, which could impact the tax planning strategies of both legal entities and individuals​​.

VAT Rate Adjustments

The standard VAT rate as of 2023 stands at 21%, with certain goods and services like food, medication, and hotel accommodation qualifying for reduced VAT rates of 7%​​.

Real Estate Sales Tax

A series of changes to tax regulations were adopted, impacting the Real Estate Sales Tax laws, which could influence your restructuring strategies, especially in cases of asset splits and divisions​​.

Reduced VAT Rates and Corporate Income Tax Liability

Following Montenegro’s path towards EU accession, new rules have been set including a decrease in the corporate income tax liability by 6% as of 1 January 2022, and the introduction of reduced VAT rates on certain items, alongside transfer pricing provisions​​.

These amendments underscore the importance of a well-versed tax and legal structure that not only complies with the current regulatory framework but also optimizes tax efficiency for your business. Engaging with professionals who are abreast of these changes can significantly aid in navigating the legal and tax intricacies involved in restructuring and other business transactions.