To receive
monthly updates on new features in lowtax.net
and tax-news.com just enter your e-mail address
below:
Daily
Tax Quote
New On The Network Today
This feed is published daily with selected new or updated
content from across our network. For a list of network sites, many of
which feature daily news, see below.
Providing essential tax news and information for globally
mobile artists, contractors, entrepreneurs, professionals, small businesses,
sportspersons and entertainers.
Lowtax Network Sites
Lowtax Network Portal:
'Low-tax' business and investment in the top 50 jurisdictions covered in
exceptional detail.
Tax News: Global
tax news, continuously updated through the day.
Law & Tax
News: Daily news and background data on tax and legal developments
for international business.
Offshore-e-com:
A topical guide to offshore e-commerce focused on tax and regulation.
Lowtax Library:
One of the web's largest and most authoritative business and investment
information sources.
US Tax Network:
The resource for free online US taxation information, covering: corporate
tax, individual tax, international tax, expatriates, sales and e-commerce
tax, investment tax.
NEW! Personal
Business Tax Guide: Providing essential tax news and information
on business for contractors, entrepreneurs, professionals, small businesses,
artists, sportspersons and entertainers.
Business Profits Tax (Impot sur les benefices)
is levied on three types of entity:
An
entity receiving royalties or other
income which relates to intellectual
property rights such as the licensing
and selling of copyrights, patents
and trademarks. If however some tax
has been deducted at source in another
jurisdiction then the Monegasque authorities
will give a tax credit against the
amount assessed;
An
entity involved in commercial or industrial
activities 25% or more of whose income
is from sources located outside of
Monaco; and
A
company incorporated in Monaco which
holds 20% or more of the shares of
a non-resident company will pay business
profits tax on dividends received
from the non-resident company (note
that pure holding companies are not
allowed in Monaco).
Thus business profits tax is not levied on:
Entities which are not involved in intellectual
property or in commercial and industrial
activities (eg professional firms,
consultancies, service providers);
Entities which are involved in industrial
and commercial activities 75% or more
of whose income comes from within
Monaco; and
Non-resident entities in any line of business,
residence being determined by the
residence of the directors, officers
and main shareholders and the location
of board meetings.
Since no income tax is payable by individuals
in Monaco (save by certain classes of
French nationals) where a business entity
is subject to profit tax this can be mitigated
by adopting the practice of paying out
all profits in salaries or management
fees and thereby ensuring negligible business
profits for taxation purposes (subject
to statutory limits on directors' fees).
It should be noted that an administrative
head office of a foreign corporation is
not subject to business profits taxation
since it does not have a commercial purpose.
Instead the administrative head office
pays a charge of 2.66% of the sum of expenses
relating to the running of the office.
The profits of a branch of a foreign company
are deemed to be earned outside the Principality
and so the branch may be required to pay
business profits tax.
When levied, the rate of
business profits tax is 33.33%. Reduced
rates apply to newly incorporated entities:
a new trading entity less than 50% of
whose share capital is held directly or
indirectly by other companies pays a reduced
rate of business profits tax on its activities
for the first 5 years after its incorporation,
as follows:
0%
payable in the first 2 years;
tax
calculated on 25% of the reduced profits
in the third year;
tax calculated on 50 % of
the reduced profits in the fourth
year
tax calculated on 75 % of
the reduced profits in the fifth year
tax calculated on 100 % of
the reduced profits in the sixth year
Generally speaking, taxable income is based
on GAAP financial statements. The following
are some particular rules applied in Monaco:
Directors' fees are deductible up to a
maximum based on turnover and the
social security ceiling, and there
is a reasonableness test;
Inventory is normally valued at the lower
of cost or market value; cost is determined
either by FIFO or by average cost;
One
half of any increase in research costs
is deductible, with an inflation adjustment;
Certain types of provision are deductible,
including specific loss provisions
and provisions against asset valuations;
Trading losses can be carried forward and
set off against trading profits for
a period of 5 years; trading losses
can in some cases be carried back
and set off against profits arising
in the previous 3 years - a tax credit
is issued;
There
are some limitations on the deductibility
of luxury goods and services, interest
on loans, and expenses against foreign
source income;
Capital gains on the disposal of business
assets are taxable as income.
The tax year is the calendar year. Advance
payments of one fifth of the previous
year's tax bill are due on February 20th,
May 20th, August 20th and November 20th.
Tax returns are due three months after
the end of the year, and any balance of
tax due is immediately payable.
One of the web's largest and
most authoritative business and investment information sources. Alongside
topical, daily news on worldwide
tax developments, you can receive weekly newswires or
access up-to-date intelligence
reports on a range of legal, tax and investment subjects.
Our 16 constantly updated
intelligence reports cover every important aspect of 'offshore' and international
tax-planning in depth, including banking secrecy, the EU's savings tax
directive, offshore funds, e-commerce, offshore gaming and transfer pricing.
Reports are available for immediate downloading or as subscription
services with news pages.
Advertising & Marketing
With over 50,000 qualified readers every month our web-sites
offer a number of cost effective, targeted advertising,
sponsorship and marketing opportunities:
Display advertising - from 'skyscrapers' to 'buttons'
Content/article submission and sponsorship
Opt-in email marketing
On-line Services Directory listings
Could your corporate web-site or newsletter benefit
from incorporating regularly updated news and content
tailored to serve your clients' interests? We can provide
a variety of maintenance-free news and content solutions
that can be seamlessly integrated and dynamically delivered:
IMPORTANT NOTICE: THE LOWTAX NETWORK
has taken reasonable care in sourcing and presenting the information contained
on this site, but accepts no responsibility for any financial or other loss
or damage that may result from its use. In particular, users of the site are
advised to take appropriate professional advice before committing themselves
to involvement in offshore jurisdictions, offshore trusts or offshore investments.
All materials on this site copyright THE LOWTAX NETWORK 1999 to 2010.
All content on this site
has been provided by BSIRN.