Monaco

Basic taxes (briefly)

Personal tax No
Corporate tax (in detail) The income tax rate is 33.33%
Capital gains tax. Details
VAT. Details VAT is charged according to the rules established in France. The standard VAT rate is 20%. Reduced rates of 10%, 5% and 2.1% apply to some goods and services
Other taxes Social Contributions, Inheritance and Gift Tax
Government fee No
Stamp duty 0,5-7,5%

International tax agreement

   


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TAXATION

Individual Taxation

Monaco does not levy personal income tax.

Corporate Income Tax

The current rate of corporation tax is 33.33% on normally computed profits. However, a company whose turnover outside the Principality does not exceed 25% of its total turnover is exempt from corporation tax.
Business Profits Tax (Impot sur les benefices) is levied on three types of entity:

  • 
An entity receiving royalties or other income which relates to intellectual property rights;
  • An entity involved in commercial or industrial activities 25% or more of whose income is from sources located outside of Monaco; and
  • A company incorporated in Monaco which holds 20% or more of the shares of a non-resident company will pay business profits tax on dividends received from the non-resident company.

Capital Gains Tax

Monaco does not levy capital gains tax.

Tax Year

The tax year conforms to calendar year.

Withholding Tax

Monaco does not levy withholding tax.

VAT

VAT (taxe sur le valeur ajouté) is levied on the sale of goods and the provision of services and is applicable at the same rates as those in France.
The standard VAT rate is 20%, with a reduced rate of 10% applying to specified transactions, except for basic products (5.5 %)

Stamp Duty

Stamp duty is a tax that is levied on all documents used for civil and legal purposes and for documents that are required as legal proof in court.
Stamp duty is either applied at a fixed rate, or according to the size of paper used.

Government Fee

There are no government fees applicable.

Other Taxes and Duties

Inheritance/estate tax applies to property situated in the territory of the Principality or with situs in Monaco, whatever the domicile, residence or nationality of the deceased person or the donor. The level of taxation depends on the nature of the relationship between the deceased person and their heir and ranges from 0% to 16%.
VAT on property transactions applies ipso jure to sales of building land and buildings occurring within five years of their completion by taxpayers for that purpose. The rate of taxation for VAT is 19.60 % for property transactions.
Social security contribution Employees pay approximately 12% of the gross salary for social contributions (C.C.S.S.) and the government-administered pension (C.A.R.).

Double Tax Agreements

Monaco has exchange of information relationships with 29 jurisdictions through:

  • 8 DTCs: Guernsey, France, Luxembourg, Mali, Mauritius, Qatar, Saint Kitts and Nevis, Seychelles;
  • 31 TIEAs: Andorra, Argentina, Australia, Austria, Bahamas, Belgium, Czech Republic, Denmark, Faroe Islands, Finland, Germany, Greenland, Iceland, India, Italy, Liechtenstein, Netherlands, Norway, Samoa, San Marino, South Africa, Sweden, United States.

Foreign exchange control

There is no exchange control in Monaco.

ACCOUNTS

Financial Statements

It is mandatory to file accounts annually with the Repertoire de Commerce (commercial registry), within nine months of the end of an accounting period. Accounts must be filed with the tax authorities within three months of the end of an accounting period.
These financial statements are not available to the public.

Annual Return

There is a statutory requirement for SARLs to prepare and file annual return.

Tax Returns

There is a statutory requirement for SARLs to file annual tax return.

    Taxes of Monaco

    Min. rate for corporate tax 33.33%
    Capital gains tax Regular rate
    VAT 20%
    Withholding tax No
    Exchange control No
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