Specific Taxes in San Marino
San Marino's tax system extends beyond corporate and personal income taxes, encompassing a diverse range of specific taxes that contribute to the country's fiscal landscape. These taxes are levied on various activities, transactions, and assets, serving specific purposes and policy objectives.
Value-Added Tax (VAT)
VAT is a consumption tax imposed on the sale of goods and services within San Marino. It is a comprehensive tax that applies to most business transactions, with a standard rate of 17%. Certain goods and services, such as food, beverages, and healthcare, are subject to reduced VAT rates of 5% and 10%.
Property Tax
Property tax is an annual levy imposed on the ownership of real estate in San Marino. The tax is based on the property's cadastral value, which is determined by its size, location, and other factors. The tax rates vary depending on the type of property and its intended use.
Environmental Taxes
San Marino has implemented environmental taxes to discourage harmful practices and promote sustainability. These taxes include:
- Carbon Tax: A tax on the emission of greenhouse gases, such as carbon dioxide, from industrial activities and transportation.
- Waste Disposal Tax: A tax on the disposal of waste, encouraging waste reduction and recycling.
- Water Consumption Tax: A tax on the consumption of water, promoting water conservation.
Stamp Duty
Stamp duty is a tax levied on various legal documents and transactions, including property transfers, share transfers, and contracts. The tax rates vary depending on the type of document or transaction.
Inheritance Tax
Inheritance tax is imposed on the transfer of property or assets upon the death of an individual. The tax is calculated based on the value of the inherited assets and the relationship between the deceased and the beneficiary.
Taxpayers Subject to Specific Taxes
The taxpayers subject to specific taxes in San Marino vary depending on the nature of the tax.
- VAT: Businesses engaged in the supply of goods and services are liable for VAT.
- Property Tax: Property owners, including individuals, companies, and trusts, are subject to property tax.
- Environmental Taxes: Companies and individuals engaged in activities with environmental impacts, such as manufacturing, waste disposal, and energy production, are liable for environmental taxes.
- Stamp Duty: Parties involved in transactions subject to stamp duty, such as property buyers, shareholders, and parties to contracts, are responsible for paying the tax.
- Inheritance Tax: Beneficiaries who inherit property or assets upon the death of an individual are subject to inheritance tax.
Purpose and Rationale
The specific taxes in San Marino serve various purposes and policy objectives:
- VAT: VAT generates revenue for the government, which is used to fund public services and infrastructure. It also promotes economic growth and fiscal stability.
- Property Tax: Property tax contributes to local government budgets and supports infrastructure development. It also helps regulate property ownership and discourages speculative investment.
- Environmental Taxes: Environmental taxes aim to internalize the costs of environmental damage and encourage sustainable practices. Revenue from these taxes may be used for environmental protection measures and conservation efforts.
- Stamp Duty: Stamp duty revenue contributes to government revenue and may be allocated to various public services and initiatives.
- Inheritance Tax: Inheritance tax helps ensure fairness in the tax system by taxing the transfer of wealth. Revenue from inheritance tax may be used for general government expenditure.
Legal Framework
The specific taxes in San Marino are established and regulated by various legal statutes and regulations, including:
- VAT: Law No. 166/2006 on Value-Added Tax
- Property Tax: Law No. 102/2004 on Property Tax
- Environmental Taxes: Law No. 118/2014 on Environmental Taxes
- Stamp Duty: Law No. 103/2004 on Stamp Duty
- Inheritance Tax: Law No. 166/2006 on Inheritance Tax
These legal texts outline the obligations, rates, and procedures for the collection and enforcement of specific taxes in San Marino.
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