Treatment of professional training expenses

Montenegro/February 2013

The government issued a new regulation (“Off. Gazette of Montenegro”, no. 51/12) concerning the recognition of fees as an overpaid tax, which employers pay for professional training of their employees.

Specified by this regulation, the fees paid by the employer for the training of professionals, are recognised as overpaid taxes.

An employer, that makes payment for the expenses of vocational or professional training, needs to apply for these expenses to be recognised as overpaid taxes. The application must be submitted to the competent tax authority according to a permanent or temporary residence, or principal place of business of the applicant with the form called “ZPIN”.

The application must include an agreement on professional training, proof of payment for the professional training and the report on the performance of professional training. The amount paid for the vocational/professional training, can be considered as overpaid taxes and can be used to settle:


•Tax on profit; and

•Excise duty.

Under this regulation, employers must keep records of overpaid taxes in their book-keeping.

This regulation shall be applied from February 15 2013.

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