San Marino Taxation has enabled to keep a check on the fiscal policies in the country. The tax and revenue system operates the total economy of this small European country. There are several types of taxes that are imposed on people in this country. The percentage of tax that is imposed also varies according to the income scale. San Marino’s first income tax was introduced by the legislation in 1984 and was approved by the Grand and General Council.
Some of the common taxes that have to be paid by the people in San Marino include the following:
- Corporate Profit Tax
- Capital Gain Tax
- Value Added Tax or VAT
- Stamp Duty
- Mortgage Tax
- Succession Duty
- Registration Tax
The rate of corporate profits tax is 19%, while that of capital gains is 5%.
San Marino taxation has undergone several amendments in various taxation policies over the years. The concept of VAT was introduced initially in Italy in 1972 and later applied to San Marino.
A separate tax was also imposed on imported goods to the country. However no taxes are imposed on products, which are manufactured as well as sold in the country. Till the present day, heavy taxes are levied on imported goods. The Italian VAT system was replaced by a general VAT policy in the country. There are also separate income tax laws apart from the general taxes and entertainment taxes. People from different income groups have to pay taxes in different slabs.
There are also several methods of saving tax by providing donations or by investing in certain government schemes and policies. Various tax benefit offers are also provided to the general people of the country.
