Tax
General income tax plus a single-stage import tax instead of VAT
San Marino levies a general income tax on individuals and companies at low rates. Instead of VAT it applies the imposta monofase, a one-off tax charged on goods when they are imported.
Key rules
- The imposta monofase is charged once on import rather than at each stage of supply.
- Corporate income is taxed at a low general rate with incentives for new activity.
- Personal income tax is progressive with deductions for family circumstances.
Governing law
- Law 166/2013 on general income tax
- Law 40/1993 on the single-stage import tax
In practice
Because there is no VAT, trade with Italy uses a special documentary procedure, and Sammarinese invoices cannot carry recoverable VAT.