§ Legislation

Structure of Tax Administration

Taxation refers to compulsory or coercive money collection by a levying authority, usually a government. The term "taxation" applies to all types of involuntary levies, from income to capital gains to estate taxes.

In broader sense, in terms of activities of assessment, collection and audit of taxes and customs the Tax Administration refer to:

It should be noted that all municipalities have organized on local level tax administration, being responsible for assessment, collection and audit of taxes on local level.

Competences of the Tax Administration

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).

In discharging competencies prescribed by the law, the tax administrations does have the following authorization to:

Law on Tax Administration