1. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Working Group for Chapter 16 – Taxation Bilateral screening: Chapter 16 PRESENTATION OF MONTENEGRO Brussels, April 2013

2. Chapter 16 : Taxation Working Group for Chapter 16 – Taxation Bilateral screening: Chapter 16 Presentation of Montenegro Brussels, April 2013 M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 16: Taxation

3. Chapter 16 : Taxation Montenegrin Tax Administration IT System Anđelko Jovanović Advisor in Tax Administration andjelko.jovanovic@tax.gov.me M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 16: Taxation

4. Chapter 16 : Taxation PRODUCTION APPLICATION SYSTEMS  Directorate of Public Revenues of Podgorica (DJPPG)  Unified Collection Gateway (UCG)  Central Registry of the Commercial Court (CRPS) M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 16: Taxation

5. Chapter 16 : Taxation Directorate of Public Revenues of Podgorica (DJPPG)  The first unified computerised solution developed and put in operation in the MTA (since 2003, funded by USAID)  Covers a broad range of business functions of the Tax Administration  The DJPPG is a two-tier client-server application M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 16: Taxation

6. Chapter 16 : Taxation DJPPG High-level Architecture M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 16: Taxation

7. Chapter 16 : Taxation The Unified Collection Gateway (UCG) The system was implemented in two phases, known as UCG-1 and UCG-2  UCG-1 (2010): the General Registry of Taxpayers and Insurers (CROO) and the Tax Registration Portal for Taxpayers  UCG-2 (January 2011): the Tax Accounting Information System The following set of functions is currently in operation on UCG: Central Registry of Tax Payers and Insurers; Employee Taxes and Contributions; The Annual Tax of Natural Persons; Lump Sum Taxes; Accounting for Employee Taxes and Contributions; Processing of SWIFT Messages for the needs of the functions implemented on UCG. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 16: Taxation

8. Chapter 16 : Taxation UCG System Architecture - physical layers Presentation layer: The Web Portal is accessed by internal users as well as by external users (the Taxpayers); Application Integration Layer: This exposes a set of web services which are intended to provide access to the lower layers of the system for the Web Portal as well as provide access to UCG for External Systems; Business Processes Layer: –Document Management - its scope is to process the submission of documents that is realised via the Presentation Layer; –BizTalk Server: BizTalk is used as an Enterprise Application Integration, Business Process Automation and Business-To-Business Communication platform. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 16: Taxation

9. Chapter 16 : Taxation Central Registry of the Commercial Court (CRPS)  The Central Registry of the Commercial Court is authorised for the registration of the business organisations and other entities in Montenegro and currently maintains the registry of all business entities in the country  The CRPS has been initially maintained by the Commercial Court, yet the responsibility for its maintenance has recently been transferred to MTA (since 2011) along with the application system and the database  MTA is planning to integrate CRPS with the overall IT System in the future M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 16: Taxation

10. Chapter 16 : Taxation Upgrading IT Capacity of the TAX Administration – Montenegro  IPA 2010 project  Taxpayers will be able to submit VAT Returns using online form  Taxpayers will be able to submit CIT Tax Returns using online form  Taxpayers will be able to submit Balance Sheet and Income Statement using online form M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 16: Taxation

11. Chapter 16 : Taxation The main problems  Lack of IT strategy  Reports and analysis of the data (there is no active data warehouse)  CRPS-development of a new system  Lack of integration between existing systems - two tax accounting systems M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 16: Taxation

12. Chapter 16 : Taxation MTA IT System – System Architecture M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 16: Taxation

13. Chapter 16 : Taxation Network Infrastructure  The MTA has a well established network which connects all branch offices of the institutions with the headquarters in Podgorica and provide the required Intranet environment for the operation of all the applications running in the MTA IT System.  The MTA Intranet system is formed in a star topology.  MTA Intranet consists of around 600 client computers. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 16: Taxation

14. Chapter 16 : Taxation MTA Wide Area Network (WAN) M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 16: Taxation

15. Chapter 16 : Taxation Links of MTA with Governmental Institutions of Montenegro M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 16: Taxation

16. Thank you for your attention! QUESTIONS