The fiscal policy is a feature which makes the Republic of San Marino an attractive place for foreign investments. In fact, the adoption of a fiscal policy in support of companies, has encouraged the development of San Marino’s economy.
CLICK HERE FOR MORE INFORMATION - STANDARD CORPORATE INCOME TAX RATE (CIT), DEDUCTIBILITY OF COSTS, CAPITAL GAINS FROM SALES OF INTERESTS, WITHOLDING TAX (on outbound dividends, interest, royalties)
The system covers direct taxation (IGRL and IGRP) and an indirect (Monofase - single-phase) taxation.
IGR is the general income tax which, for employed persons is called I.g.r.l. (tax for physical persons and withholding tax system) and for companies, I.g.r.p. (tax for legal entities).
On one hand, the general income tax amount to 17% of the net revenues and is applied on profits made by legal entities. On the other hand, the taxation of physical persons, both residents and non residents, is determined by applying a progressive rate for income brackets and is enforceable only to revenues produced in San Marino.
The Monofase (Single-phase) is the indirect tax applied to trade; it is applicable only when the good is imported into San Marino by the business operator, for this reason is called Monofase (Single-phase). The ordinary tax rate on imports is equal to 17% of the taxable base. Being an import duty, the single-phase taxation is recognized as equivalent to the VAT (value added tax).
For more information on the fiscal matter see the website of the Segreteria di Stato per le Finanze - Ministry of Finance- (available only in Italian).