Tax Administration Begins Automatic Exchange of Financial Information with the USA

The first exchange with the American Tax Service has been realized, and preparations are underway for the implementation of the OECD standard. The Tax Administration of Montenegro has established automatic exchange of financial information with the United States under the FATCA agreement, marking a significant step forward in international tax cooperation. Unlike traditional information exchange based on individual requests from tax authorities, automatic exchange enables regular and systematic sharing of predefined data between competent tax administrations. The initial data exchange with the US Tax Service (IRS) was conducted via the secure IDES (International Data Exchange Service) system and covered reporting periods from 2014. Simultaneously, the Tax Administration is working on implementing the Common Reporting Standard (CRS) developed by OECD, in accordance with obligations from multilateral agreements on international tax cooperation. This standard establishes a broader framework for automatic exchange of financial account information with other jurisdictions, through which the Tax Administration will receive data on financial accounts of Montenegrin tax residents abroad from partner countries. Automatic exchange of financial information contributes to greater transparency, strengthening of tax discipline, and more efficient oversight of tax obligations arising from income and assets abroad.