Montenegro Transfer Pricing Documentation Requirements
Montenegro requires large taxpayers to file transfer pricing documentation annually with the tax return, while other taxpayers must hold it and produce it within 45 days of a request. Safe-harbour interest rates apply to intercompany loans, and a multi-year analysis is mandatory.
Requirements at a glance
| Requirement | Threshold | Deadline | Deadline type | Language | Penalty |
|---|---|---|---|---|---|
TP documentation Filed by large taxpayers
Required | Large taxpayers file annually; other taxpayers hold and produce on request | By tax return filing date | Preparation deadline The documentation must exist by the date shown and is produced only when the tax authority requests it. Once requested, it must be provided within 45 days. | Local | Yes (EUR 1,000 to EUR 20,000) |
CbC report Required | Group revenue ≥ EUR 750m | 12 months after fiscal year-end | Submission deadline The Country-by-Country report is filed by the group's ultimate parent entity; a local notification identifying the reporting entity is filed separately. | — | Yes |
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Scope of the documentation obligation
Montenegro distinguishes between large taxpayers and others. Large taxpayers, identified under the rulebook on the criteria for determining large taxpayers, must submit transfer pricing documentation annually with the tax return, while other taxpayers are required to hold the documentation at the time of submitting the return and to produce it within 45 days of a request. The distinction therefore turns on the taxpayer’s classification rather than on a transaction threshold.
Distinctive features of the Montenegrin regime
Two features distinguish the Montenegrin regime. The first is the large-taxpayer filing split, under which classification as a large taxpayer converts the obligation from holding documentation to actively filing it with the return. The second is the published safe-harbour interest rates for intercompany loans, updated annually, which allow intra-group financing to be priced without a separate benchmarking exercise where the prescribed rate is used. A fine ranging from EUR 1,000 to EUR 20,000 applies to a legal entity that fails to submit required documentation or to produce it within 45 days of a request. A multi-year analysis is mandatory.
Benchmarking and comparables
Foreign comparables are accepted where no local comparables can be identified. The use of a multi-year analysis is mandatory. The frequency of a fresh search is not explicitly prescribed, and in practice some taxpayers roll a study forward while others prepare a fresh analysis each year, although the financials of the taxpayer should be updated every year in line with its financial statements. The general limitation period is five years, starting from the beginning of the year following the year in which the tax liability is to be assessed.
Frequently asked questions
Which Montenegrin taxpayers must file documentation rather than just hold it?
Large taxpayers, identified under the rulebook on the criteria for determining large taxpayers, must submit the documentation annually with the return. Other taxpayers hold it and produce it within 45 days of a request.
This guide is an informational research aid prepared by Comp-Press and is not tax or legal advice. Transfer pricing rules change; verify current requirements before relying on them for filing.