Effective 1 January 2021, companies are subject to corporate tax (known as impôt sur les bénéfices, or business profits tax) at the rate of 26.5%. The rate is scheduled to be reduced to 25% from tax years beginning on or after 1 January 2022. Previously, the rates were 28% for the tax year 2020 and 31% for the tax year 2019.
Capital gains are considered as ordinary business income and subject to tax at the standard corporate tax rate, subject to certain exemptions (see Sec. 5.1.).
Under the participation exemption regime, dividends received by Monegasque companies from resident or non-resident companies are partially exempt from corporate income tax (see Sec. 5.1.).
Where the participation exemption conditions are not met, the dividends are included in the taxable results of the period and are subject to tax at the standard corporate income tax rate. Any tax paid abroad related to such dividends is creditable against the tax due in Monaco on the dividends.