Council Directive (EU) 2016/881 of May 25, 2016 amending Directive 2011/16/EU with regard to the mandatory automatic exchange of information in the field of taxation (DAC4) introduces the extension of the automatic exchange of information between member states on country by country reporting (CbCr).

In order to fully harmonize the law with this Council Directive (EU) 2016/881, the Instruction on the closer way of reporting data submitted by a legal entity that is a member of an international group of related legal entities in relation to business to the administrative body responsible for tax affairs (Country by Country Report) was adopted. The instruction was published in the "Official Gazette of Montenegro", no. 69/2022 and 43/2025.

The automatic exchange of reports by country is one of the measures within the OECD Action Plan on Base Erosion and Profit Shifting (BEPS Action Plan).

The report by country contains consolidated information on the group of multinational companies, which mainly relate to the global distribution of income, tax paid and certain indicators of the place of economic activity of the group of multinational companies.

Those obliged to submit reports by country for a group of multinational companies whose total consolidated income of the group exceeds the amount of EUR 750 million are ultimate parent companies or other constituent entities of the group that are residents of Montenegro for taxation purposes.

Taxpayers submit reports by country to the Tax Administration (Form MNP-CbCr) within 12 months from the last day of the tax year for which the report by country is submitted.

The automatic exchange of reports by country with other countries takes place on the basis of the Multilateral Competent Authority Agreement on the exchange of reports by country (Multilateral Competent Authority Agreement - CbC MCAA), which Montenegro has acceded to and whose implementation is carried out through the automatic exchange of Country-by-Country reports with all other jurisdictions that are signatories to this agreement. Montenegro signed the Multilateral Agreement of Competent Authorities on the Exchange of Country Reports (CbC MCAA) on May 14, 2024.

https://www.oecd.org/content/dam/oecd/en/topics/policy-issues/tax-transparency-and-international-co-operation/cbc-mcaa.pdf

List of all signatory countries to the Multilateral Agreement of Competent Authorities on the Exchange of Reports by State (link:

https://www.oecd.org/content/dam/oecd/en/topics/policy-issues/tax-transparency-and-international-co-operation/cbc-mcaa-signatories.pdf

Instructions on how to submit information to the Tax Administration can be found at the link:

DELIVERY OF INFORMATION

or in the document below the article.