SAN MARINO, the oldest Republic of the world (founded in the 301 a.c.), enjoys independent sovereignty having its own independent institutions; San Marino has acquired international status through acknowledgment from other States and adhesion to international treaties and organizations.
Corporation tax (IGR) The company income tax rate is 17% (proportional). The profits distributed to the owners/shareholders are not subject to additional taxation in San Marino (if the shareholders are resident abroad becomes necessary to evaluate the treaties between San Marino and the foreign country n the “double taxation”).
Tax with holding at the source The San Marino companies act as withholding agent (on behalf of the Revenue Service) when they correspond payments to subjects nonresident (both companies and individuals), in money or nature, for carried out perfor- mances(consultancy of any kind). The withholding tax rate is 20%.
Tax on commissions to agents / on advertising and data editingThe San Marino companies when paying out commissions to agents and/or representatives nonresident (both companies and individuals), are obliged to pay a tax rate of 6% when selling or promoting foreign merchandise or services (the rate is reduced to 3% when selling or promoting sammarinese merchandise or services).The San Marino companies when paying out remuneration to subjects nonresident (both companies and individuals) for advertising or data editing services are obliged to pay a tax at a rate of 3%.
Import tax The tax on the imports of goods and services connected to the goods is called “monofase” and has a rate of 17%. As a different concept from the “VAT” , this tax only affects the goods and the services connected when those enter San Marino territory, not the “added value”. The rate of 17% is reduced for specific categories of goods and according to their future use (i.e. personal computers or furniture for the company offices are taxed at 1% if they are instrumental to the activity). This tax is refund- able when the goods are exported, even when they have undergone transformation. (i.e. a San Marino based company I buys a product at 100 euro, on this amount the company pays a tax of 17 euro. When the Company sells the product at, let’s say 100% above its original value, the final price of sale to customers will be 217 euro (while with the VAT system, that would be 240 euro, considering VAT at 20%).
The limited liability companies (S.R.L.) and the stock companies (S.P.A.).Anonymous companies (S.A.) have been abolished effective September 30th 2010.
Anyone can own shares (up to 100%) of a San Marino company no matter the nationality and /or the residency(with limitations for trading companies where 51% of the shares must be owned by a SM resident and specific sector where a preventative authorization must be released by the Adinistration – see below). In the majority of cases, the registration of a new company in San Marino is very simple and not subject to restrictions.
The administrative tasks for the start up and registration are fairly simple and can be fulfilled in about 20/30 days (our Chartered Accountant firm can guide you through all the steps of the process).
The companies can be managed by a “sole director” or by a Board of directors (from 2 to 7 members).
The financial statements must be approved by the shareholders assembly within May 31st, every year .
17. all the economic activities in the field of metal scrap “.
c) the majority of members of the board of directors or the sole administrator is a san Marino resident.
Furthermore, for the economic activities in the financial field (banking, investments, insurance, financing, fiduciary activity) it is necessary, other than the authorization of the Administration, the acceptance by the Surveillance Authority of San Marino Central Bank.
1. The existence of only one company income tax . Companies are subject to an income tax rate of 17% (proportional).
2. Simple and friendly fiscal system.
3. The profits distributed to the shareholders are not subject to additional taxation.
5. Amortization: totally tax-deductible from the first fiscal year.
7. Financial lease contracts: possibility of deduction according to the duration of the contract (other than that, for properties the maximum amortization rate is 4%). Minimum duration of financial lease: 24 months for personal properties, 48 months for real estate.
9. No VAT system. The tax on the imports of goods and services connected to the goods is called “monofase” and has a rate of 17%. As a different concept from the “VAT” , this tax only affects the goods and the services connected when those enter San Marino territory, not the “added value”. The rate of 17% is reduced for specific categories of goods and according to their future use (i.e. personal computers or furniture for the company offices are taxed at 1% if they are instrumental to the activity). This tax is refundable when the goods are exported, even when they have undergone transformation.