Montenegro: Covid-19-virus relief measures

25. January 2021

 

The Government of Montenegro has implemented three packages of measures to support the economy and citizens in 2020.

  • The main first relief measures of the Montenegrin Government regarding COVID-19 were the delay of payment of loans received from financial institutions for all citizens and companies for a period of 90 days, the delay of payment of taxes and contributions on salaries for a period of 90 days. Moreover, loans for liquidity of the companies up to 3 million euros will be granted – grace period 2 years at an interest rate of 1.5 %.
  • The second set of measures was adopted in order to preserve jobs and create preconditions for a faster economic recovery.
  • Third package of economic measures includes: Subsidizing of interest rates for credit lines with IDF and commercial banks during the grace period for reprogramming existing (tourism and agriculture sectors) and new credit placements projects); Creating favorable credit lines (within the IDF and commercial banks) intended for financing short-term and long-term priority development projects; Tax relief by defining a lower VAT rate for certain areas and activities; Direct support to the economy through subsidizing the salaries of employees in certain areas.

The Government adopted a new package of measures to support the economy and citizens affected by COVID 19 for the first quarter of 2021.

  • Support to the economy includes following measures: Support the economy through wage subsidies; Postponement and rescheduling of income taxes and contributions;Support for new employment; One – time business support for establishing an electronic fiscalization system; Increasing the turnover limit from EUR 18,000 to EUR 30,000 as a condition for mandatory VAT registration; Reducing the cost of renting state-owned space and deferring these obligations; Reduction of VAT refund period; Additional support measures for tourism and catering as well as for agriculture and fisheries.

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