Montenegro begins automatic financial data exchange with US

The Tax Administration of Montenegro has established the automatic exchange of financial information with the United States under the FATCA agreement. This move marks a significant advancement in international tax cooperation by moving from traditional, request-based exchanges to a regular, systemic exchange of predefined data.

The first data exchange with the US Internal Revenue Service (IRS) was conducted via the protected International Data Exchange Service (IDES) and covered reporting periods from 2014 to 2025. Under FATCA standards, Montenegrin financial institutions provide the Tax Administration with data regarding the financial accounts of US taxpayers. This information includes account holder identification, year-end account balances, interest income, dividends, and proceeds from the sale of financial assets.

Additionally, the Tax Administration is working to implement the OECD’s Common Reporting Standard (CRS). This will create a broader framework for the automatic exchange of information with other jurisdictions, allowing Montenegro to receive data on the foreign financial accounts held by Montenegrin tax residents.