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Monaco: Domestic Corporate Taxation

Corporate Tax Rates

This page was last updated on 27 February 2021.

Formerly the rate of profit tax (impôt sur les bénéfices or ISB) was 33.33%. In October 2018 a new ordinance was passed which effected the progressive reduction of profit tax. The rate of profit tax was reduced to 31% from 1 January 2019 and 28% on 1 January 2020. The rate for 2021 is at 26.5% and the final rate reduction, to 25%, will take place on 1 January 2022.

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

 

 

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