Monaco legal and accounting and tax considerations in 2022
- Taxation on corporate entities in Monaco depends on the source of company income. If more than 25% of the income is generated outside of Monaco, corporate income tax is ten fixed at a standard rate of 33.3%. Otherwise, companies are legally exempt from corporate income tax;
- Tax returns are filed three months after the end of the year. Any tax due is immediately payable;
- The standard Value Added Tax (VAT) in set at the same rate as France (currently 20% for the standard rate). All companies incorporated in Monaco must also register for VAT;
- Tax losses can be carried forward for up to 5 years. Carry back of losses is permitted in certain cases for up to 3 years;
- Monaco does not levy withholding tax on i) dividends or ii) capital gains taxation. However, a holding company owning more than 20% of the shares of a non-resident company will pay corporate tax on dividends;
- Monaco does not implement any wealth tax, which exists in other nearby countries, including i) France ii) Spain and iii) Netherlands;
- Monaco does not levy inheritance tax between direct relatives;
- The country currently has nineteen tax information exchange agreements (TIEAs) with countries including i) the United States ii) Germany iii) France iv) Australia v) Belgium and vi) Argentina;
- Healy Consultants will assist our Clients with i) documenting and implementing accounting procedures ii) implementing financial accounting software iii) preparing financial accounting records and iv) preparing forecasts, budgets and performing sensitivity analysis;
- It is important our Clients are aware of their personal and corporate tax obligations in their country of residence and domicile; and they will fulfill those obligations annually. Let us know if you need Healy Consultants’ help to clarify your annual reporting obligations.
Legal and compliance
- Monaco companies must conduct the activity that was declared in the incorporation forms;
- The Memorandum of Association is a contract between the shareholders and comprises i) company activities ii) registered office address iii) shareholder and director details iv) share capital v) profit distribution method;
- Monaco companies must lodge annual return and tax return;
- Each time a change occurs in the particulars of the company or to its officers, the change must be lodged with the Monaco companies registry;
- The profile of a Monaco company, including names of directors and shareholders, are publicly available on the website of the Monaco Commercial Registrar.
Recruitment in Monaco
- Recruitment of foreign labor requires the employer to justify the hiring of the foreign worker in place of an EU national. The foreign employee is expected to have professional and educational qualifications relevant to the position.