Source-cited draft: corporate income tax for Monaco (tax year 2025) — rates, thresholds and rules with primary-source citations. Unverified; pending local-accountant review.
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Built by Michael Cutajar and the OpenAccountants team. Written from the official sources it cites.
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ISB scope overview
Monaco levies a corporate profits tax (ISB) only on companies that earn more than 25% of their turnover outside the Principality, or that derive income from licensing patents/IP and royalties. New genuinely-new businesses benefit from a five-year graduated exemption. The standard rate is 25%.
Standard ISB rate
25Sovereign Ordinance no. 3.152 of 19 March 1964 (Impot sur les Benefices) - https://monentreprise.gouv.mc/en/themes/accounting-obligations-and-tax/tax/other-taxes-and-duties/corporate-income-tax
Scope — who is liable
Companies carrying on commercial or industrial activity that generate more than 25% of turnover outside Monaco; also companies whose income derives from selling/licensing patents, trademarks, processes or artistic/intellectual propertySovereign Ordinance no. 3.152 of 19 March 1964 - https://monentreprise.gouv.mc/en/themes/accounting-obligations-and-tax/tax/other-taxes-and-duties/corporate-income-tax
Domestic-only companies
Companies earning at least 75% of turnover within Monaco are not subject to ISBSovereign Ordinance no. 3.152 of 19 March 1964 - https://monentreprise.gouv.mc/en/themes/accounting-obligations-and-tax/tax/other-taxes-and-duties/corporate-income-tax
New business relief — years 1 and 2
Full exemption — no ISB on profits in the first two yearsSovereign Ordinance no. 3.152 of 19 March 1964 (new-activity relief) - https://monentreprise.gouv.mc/en/themes/accounting-obligations-and-tax/tax/other-taxes-and-duties/corporate-income-tax
New business relief — year 3
Tax charged on 25% of profit (effective rate approx 6.25%)Sovereign Ordinance no. 3.152 of 19 March 1964 (new-activity relief) - https://monentreprise.gouv.mc/en/themes/accounting-obligations-and-tax/tax/other-taxes-and-duties/corporate-income-tax
New business relief — year 4
Tax charged on 50% of profit (effective rate approx 12.5%)Sovereign Ordinance no. 3.152 of 19 March 1964 (new-activity relief) - https://monentreprise.gouv.mc/en/themes/accounting-obligations-and-tax/tax/other-taxes-and-duties/corporate-income-tax
New business relief — year 5
Tax charged on 75% of profit (effective rate approx 18.75%)Sovereign Ordinance no. 3.152 of 19 March 1964 (new-activity relief) - https://monentreprise.gouv.mc/en/themes/accounting-obligations-and-tax/tax/other-taxes-and-duties/corporate-income-tax
New business relief — year 6 onward
Tax charged on 100% of profit at the full 25% rateSovereign Ordinance no. 3.152 of 19 March 1964 (new-activity relief) - https://monentreprise.gouv.mc/en/themes/accounting-obligations-and-tax/tax/other-taxes-and-duties/corporate-income-tax
Tax base
Net taxable profit after deducting all business expenditure, including reasonable remuneration of entrepreneurs/executives; a capped deduction scale applies where turnover is under EUR 3.5m (services) or EUR 7m (other activities)Sovereign Ordinance no. 3.152 of 19 March 1964 - https://monentreprise.gouv.mc/en/themes/accounting-obligations-and-tax/tax/other-taxes-and-duties/corporate-income-tax
Withholding tax on dividends
0% — Monaco imposes no withholding tax on outbound dividends ((approx — confirm))Monaco tax code (no dividend withholding)
Withholding tax on interest
0% — Monaco imposes no withholding tax on outbound interest ((approx — confirm))Monaco tax code (no interest withholding)
Withholding tax on royalties
0% — Monaco imposes no withholding tax on outbound royalties ((approx — confirm))Monaco tax code (no royalty withholding)
ISB return filing deadline
Annual return due within 3 months of the financial year-end ((approx — confirm with Direction des Services Fiscaux))Sovereign Ordinance no. 3.152 of 19 March 1964
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