Self-assessment taxation is the basic principle in the procedure of assessment and collection of taxes and other charges.

Assessment principle of determination of tax liability is established as authorization and obligation of tax authority in the situations when calculation of tax is not done or is incorrectly done according to self-assessment principle, as well as in some cases when it is stipulated by law (when assessing tax on immovable property, tax on turnover of immovable property).

The activities of assessment, collection and audit of taxes are performed by the Department of Public Revenues (i.e. Tax Administration of Montenegro, on the state level) and local tax administrations (on the municipality level), pursuant to the Law on Tax Administration.