Tax laws San Marino
San Marino, a landlocked enclave surrounded by Italy, maintains a distinctive taxation system characterized by competitive rates and specific structures tailored to its economic environment.
Key Components of San Marino's Tax System:
Corporate Income Tax:
- Rate: The standard corporate tax rate is 17%.
- Capital Gains: Subject to a 5% tax.
- Interest Income: An 11% withholding tax is levied on interest payments.
- Incentives: New businesses may benefit from various incentives, potentially significantly reducing their tax liabilities.
Personal Income Tax (Imposta Generale sui Redditi - IGR):
- Introduction and Reform: Introduced in 1984 and extensively reformed in 2013 to enhance fiscal revenues.
- Progressive Rates: Rates range from 9% for annual incomes below €10,000 to 35% for incomes exceeding €80,000.
Import Tax (Imposta Monofase):
- Structure: San Marino operates a single-stage import tax system, levied only on imported goods and raw materials, differing from the standard European Union VAT system.
- Alignment with EU VAT: Under the EU customs agreement, this import tax is considered equivalent to the EU's VAT system.
Service Tax:
- Rate: A separate service tax was introduced in 2011 at a rate of 3%.
Wealth Taxes:
- Special Property Tax: Enacted in 2017, this tax applies to various asset categories, including real estate, financial assets, and corporate net assets, with specific rates for each category.
Economic Implications:
San Marino's favorable tax rates, particularly the lower corporate tax rate compared to neighboring Italy, have positioned it as an attractive location for businesses and high-net-worth individuals seeking tax efficiency. This has led to a significant presence of Italian businesses and affluent individuals establishing operations or residency in San Marino.
Conclusion:
San Marino's tax system is strategically designed to foster economic growth by offering competitive rates and targeted incentives. For detailed and personalized information, consulting the Sammarinese tax authorities or a tax professional is recommended.
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