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Fiscal policy San Marino

An interesting feature of the San Marino economic system is its fiscal policy. With the introduction of a fiscal policy in support of companies, the Republic of San Marino has, in fact, encouraged the development of its economy. The system contemplates direct taxation (IGRL and IGRP) and an indirect (single-phase) taxation.

Direct Taxation
IGR is a 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). The general income tax applied on profits made by legal entities is 17% of the net revenues; while the taxation of physical persons, both residents and non residents (limited only to revenues produced in San Marino), is determined by applying a progressive rate for income brackets.

GENERAL INCOME BRACKETS TAX (IGRL)
Up to 9296,22

 12% on entire sum
From 9296,23 to 15493,71

 17% in the part over 9296,22
From 15493,72 to 25822,84

 23% in the part over 15493,71
From 25822,85 to 46481,12

 29% in the part over 25822,84
From 46481,13 to 87797,67

 35% in the part over 46481,12
From 87797,67 to 154937,07

 40% in the part over 87797,67
From 154937,08 to 232405,60

 45% in the part over 154937,07
From 232405,61

 50% in the part over 232405,61

Single-phase
The indirect tax applied to trade by the Republic is "single-phase"; namely, it has a one-time effect on the value of the goods and services imported into the territory. In this way the importer is taxed exclusively at the moment of importation with a duty of 17%. Since it is an import duty, the single-phase taxation can be compared to the VAT (value added tax).