Audit support · Montenegro
Transfer pricing tax audit: how to prepare and defend the documentation
When a request for TP documentation arrives, a taxpayer that is not a large taxpayer has 45 days to submit it, and the first reply sets the course of the procedure.
Received a Tax Administration request? Tell us the date you received it: the 45-day deadline runs from receipt.
In short
On a Tax Administration request, a taxpayer that is not a large taxpayer submits its transfer pricing documentation within 45 days (Art. 38c(2)).
Documents submitted to the Tax Administration remain in the file, so the first reply should be prepared carefully, with a transfer pricing specialist.
The taxpayer may appeal a decision that sets an adjustment; prices are then defended with economic analysis and the OECD Guidelines.
01Service
What a transfer pricing audit typically looks like
For a taxpayer that is not a large taxpayer, the transfer pricing procedure usually starts with a Tax Administration request for documentation; the deadline for submission is 45 days from receipt of the request (Art. 38c(2)).
Besides the transfer pricing documentation, an audit may also request agreements with related parties, the group organisation chart, financial statements, the general ledger and invoices.
02Service
The most costly mistakes in an audit
The mistakes that hurt a taxpayer most in an audit:
The first reply to the inspector is written “in a hurry”, without a TP specialist.
Raw documents are sent without explaining the context.
The TP study is changed retroactively during the audit (the most damaging step).
The inspector's arguments are not rebutted with the OECD Guidelines.
The appeal is written without economic analysis, only on procedure.
IIIProcess and timing
What we do when you call us during an audit
- 1-2 days
01Quick review of the current state of the documentation
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02Identifying the key risks and reply priorities
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03Preparing a structured reply to the Tax Administration's request
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04Where needed: an ad hoc benchmark to support the prices
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05Communication with the inspector, in writing and orally
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06If there is a finding: preparing the appeal and support in the second-instance procedure
IVMethodology
Our role is twofold: we fix the documentation fast and we manage communication with the inspector.
What we do when you call us during an audit
VIFee
We name the fee in writing, in our reply to your inquiry
The fee depends on the number and complexity of transactions. A fixed fee is confirmed in writing before work starts.
Scope, timing and fee are confirmed in writing before work starts. What is not included is listed in the written offer.
VIISources and legal framework
Primary sources for this page
Content prepared and checked by the Schule d.o.o. Podgorica team. The sources are in Montenegrin; this page is general information, not advice for a specific case.
Updated Sources checked
VIIIQuestions
Questions clients ask about this topic
What should I do when a Tax Administration request for documentation arrives?
Check the deadline in the request and bring in a transfer pricing specialist at once: a document sent to the Tax Administration stays in the file.
How do you help in an audit?
We prepare replies, documentation and economic arguments in the audit and in the appeal procedure.
What is the deadline for submitting TP documentation on request?
In Montenegro, a taxpayer that is not a large taxpayer submits the documentation within 45 days of receiving the Tax Administration's request (Art. 38c(2)). The documentation must already exist when the corporate income tax return is filed, so those 45 days are not time to prepare it from scratch.
Inquiry
Tell us about your related parties and transactions
IXNext step
Describe your related parties and transactions: we reply on the next working day
We reply on the next working day. We name the fee in writing, in our reply to your inquiry. Scope and timing are confirmed in writing before work starts.