RULES OF APPLICATION OF THE LAW GOVERNING THE GRANTING OF RESIDENCE PERMITS AND RESIDENCES CITIZENS NOT SAN MARINO

SAN MARINO

DECREE - LAW 144 of 6 August 2010


We the Captains Regent of the Most Serene Republic of San Marino

Given the necessity and urgency referred to in Article 2, paragraph 2, point b) of the Constitutional Law
December 15, 2005 and 183 of Article 12 of the Qualified Law 12 December 2005 n
.184 namely the need and the urgency to take measures in support of the economic system
through measures aimed at encouraging the consolidation of existing enterprises and the establishment of new economic activities
;
As the Order of the Day of the Great and General Council adopted at its meeting on 23 July 2010;
Given the decision of the Congress of State 12 adopted at its meeting on August 2, 2010;
Considering Article 5, paragraph 2, of the Constitutional Law no. 185/2005 and Article 9 and Article 10, paragraph 2,
of Qualified Law n.186 / 2005;
We promulgate and send for publishing the following Decree-Law:


URGENT SUPPORT SYSTEM OF ECONOMIC MEASURES TO PROMOTE
THE CONSOLIDATION OF ENTERPRISE AND START OF NEW ECONOMIC ACTIVITIES


TITLE I GENERAL PROVISIONS



Art.
1 (Purpose and object)

1. Given the need for the Republic of San Marino to introduce measures no longer
postponed to support the economy of the country, consistent with the guidelines of the Program Budget
2010 and 2011 and with the guidelines set out in the order of the Day of the Great and General Council
its meeting on 23 July 2010, the provisions of this decree-law anticipate
some tax laws are part of the overall plan for tax reform aimed at:
- introduce new taxation can encourage the development of new business activities and
promote consolidation of economic activities already operating there;
- Start the existing order tax adjustment related to business income to
changes in the structure of the social and economic fabric of the country;
- Simplify and make more efficient the procedures within the tax ratio -
taxpayer;
2. Consistent with the purposes set forth in paragraph 1 above, the present decree-law
introduces additional measures, not having a fiscal nature, in support of the economic system.

Art.
2 (Definitions)

1. For the purposes of this Decree-Law shall be construed:
a) "San Marino", the territory of the Republic of San Marino;
B) 'participation exemption', the tax regime for exemption of capital gains realized in the
business income, to the limits and conditions laid down in Article 3 of this Decree-Law;
C) 'holding' means of equity management company;
D) for "questioning", the institution provided for in Article 15 of this decree-law, which allows
improve the efficiency of tax authorities, with a view to greater transparency and || | certainty of the relationship between tax authorities and taxpayers, marked by cooperation and good faith;
E) "Company start-ups", the newly established company, which started
the exercise of economic activity for less than one year, along the period of time necessary for its | || full goodwill;
F) 'operating license' means a license issued for the exercise of the company's
according to the rules and conditions laid down by current legislation of San Marino;
G) 'taxpayer' means the taxable entity and / or the withholding agent.


TITLE II INCOME TAX CORPORATE INCOME TAX AND PRODUCTS ABROAD


CHAPTER I RULES OF PARTICIPATION EXEMPTION AND DIVIDEND

Art. 3
(Gains exempt)

After the 24-article f of Law 13 October 1984, n. 91, is inserted the following article:
"24-g - Capital gains exempt:
1. Capital gains arising from transfer acts for consideration, including the barter and the
contribution, relating to the ownership, usufruct and all other rights attributable to
holdings in resident or non-resident companies or entities, having or not legal personality, not
residents, they do not contribute to the formation of business income.
2. The exemption operates under the following conditions:
a) that participation in companies or entities mentioned in the preceding paragraph is detained
continuously for at least twelve months and is disclosed in company accounts and at least one
budget;
B) that participation is classified in the category of financial assets in the
first financial statements in the period of ownership.
3
. Notwithstanding paragraph 1, the capital gains arising on investments in real estate companies
management does not contribute to the formation of business income, as exempt
to the extent of 80 per cent. ".

Art. 4
(Amendments to Article 22-bis of Law 13 October 1984, n. 91)

1. Letter c) of paragraph 1 of Article 22-bis ( "Revenue") of Law 13 October 1984, n. 91
is amended as follows:
"c) the proceeds of the sale of shares or units of shares and financial instruments
similar to shares, not held as financial fixed assets, other than those which || | apply the exemption provided for in article 24-octies, although not included in the assets to which
exchange is the firm's assets. ".
2

Art.
5 (Amendments to Article 24-sexies of the Law 13 October 1984, n. 91)

1. Paragraph 1 of article 24-sexies of the Law 13 October 1984, n. 91 ( "Capital losses and capital losses
"), is amended as follows:
"1. The losses of the assets relating to the company, other than those mentioned in articles 22-bis and 24-
g, determined with the same criteria established for the determination of capital gains,
are deductible if they are made pursuant to the first subparagraph a) or b) of Article 24-d
ie where it is shown to the permanent loss or damage to the goods. ".

Art. 6
(Dividends)

After the 24-Article g of Law 13 October 1984, n. 91, is inserted the following article:
"24 novies - (Dividends)
" 1. The sums or values ​​deriving from the distribution in cash or in kind, of profits or other
reserves, even during the clearance by the companies or bodies which are legal entities, non-residents in the territory of the Republic of
San Marino, do not form part of the receiving society
income, since they are excluded from the formation of the company's income or receiving unit
for 95 percent of their amount.
2. The exclusion operates on condition that participation in such companies or bodies is
held continuously for at least twelve months and is disclosed in company accounts and at least one
budget. ".

Art. 7
(coordination rules in relation to the application of the provisions of Articles 3, 4, 5 and 6
under Law 20 July 2004, n. 102)

1. The provisions introduced by Articles 3, 4, 5 and 6 of this Act have effect
as from fiscal year 2010, subject to the validity of the options for one of the schemes provided
by Articles 6 and following of the Law July 20, 2004, n. 102, carried by taxpayers
before the entry into force of this Act.
2. the provisions are repealed in Articles 6, 7 and 9 of Law 20 July 2004, n. 102.
CHAPTER II INCOME


PRODUCTS ABROAD
Art. 8
(income produced abroad and the tax credit)

After the art. 3-bis of Law 13 October 1984, n. 91, is inserted the following article:
"3-ter - (Income produced abroad and the tax credit)
" 1. Income produced abroad by resident individuals are exempt from tax if and to what
therein taxed on outright income and if declared in accordance with Articles 28 and following
. Failing that, such income shall be deemed to all effects produced in the territory of
Republic of San Marino and, therefore, contribute to the formation of the total taxable income
.
2. If the total income of legal persons and entities assimilated
concur foreign income, taxes on that income paid there outright or
considered such, but not repeatable, shall be allowed as deduction of ' net tax due up to the amount of the tax competition
San Marino corresponding to the ratio between the incomes products
3
abroad and the total income. The net tax and the tax rate are those resulting after
positive and negative income tax changes. 3
. If competing products income in more foreign states, the deduction applies separately for each State
.
4. The effects of the provisions in the second paragraph, the deduction shall be made in
tax return relative to the tax period in which the foreign income has helped to
forming the overall income and in such statement are including taxes pertaining
that have been definitively paid before its presentation. The credit for taxes paid abroad
can not exceed the net amount of tax payable on the total income.
5. The deduction is not up if the foreign income has not been declared or in the event of failure

File the return or no return.
6. If the period to which they belong such foreign income does not coincide with
one in which foreign tax has actually been paid, except as provided in the preceding paragraph
, the deduction must take place in the declaration relating to this period always
with reference to the year of accrual basis, taking into account any adjustments in increased foreign income
recoverable within three years.
7. The foreign tax actually paid and not recovered from that
deductible under the second paragraph becomes negative component of income statement of
deductible in the next tax year.
8. With the exception of foreign income through a permanent establishment, as well
as governed by Article 10 of this Law, foreign income to be considered for the
calculating the tax credit, provided for preceding paragraphs, it must be determined by multiplying the
total income for the relationship between the foreign gross income and total revenues.
9. In the event that the income produced abroad contributes in part to the formation of
total income, also the foreign tax deductible is reduced by that amount. ".

Art. 9
(coordination requirements for the foreign income)

1. A determination of non-compliance of declaratory obligations in the previous article
and those already provided in the article. 44 of Law 21 December 2007 n. 129 involves applying in
to the taxpayer of the penalties provided by art. 63 of Law 13 October 1984, n. 91 and subsequent amendments and additions
.
2. The provisions of the preceding paragraph shall apply with effect from 1 January 2010. ".


CHAPTER III ON PERMANENT ESTABLISHMENT

Art. 10
(Permanent Establishment)

After Article 2 of the Law of 13 October 1984, n. 91, the following is inserted Article 2-bis - Stable organization

"1. It's called "permanent establishment" the fixed place of business through which the business is not established
is wholly or partly carried on in the State.
2. The term "permanent establishment" is identified, by way of example and without limitation, in:
a) a place of management;
B) a branch;
C) an office;
D) a factory;
E) a workshop;
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f) a mine, an oil or gas well, a quarry or any other place of extraction of natural resources
. 3
. A building site or construction or assembly or installation, or the exercise of supervision
activities connected with it, is considered "permanent establishment" only if such site or
activity has a duration of more than three months.
4. In addition to the provisions of paragraph 2, constitutes a permanent establishment in the availability
any title of electronic computers and related auxiliary facilities that enable the collection and
transmission of data and information in order to sell goods and services.
5. Notwithstanding the provisions of the preceding paragraphs, a fixed place of business is not, however, considered a permanent establishment if
:
a) uses facilities solely for the purpose of storage, of goods or || display or delivery | merchandise belonging to the enterprise;
B) the goods or merchandise belonging to the enterprise is stored solely for the purpose of storage, display or delivery of
;
C) the goods or merchandise belonging to the enterprise solely for the purpose of processing by
another enterprise;
D) a fixed place of business solely for the purpose of purchasing goods or merchandise or of collecting
information for the enterprise;
E) is used for the sole purpose of carrying on, for the enterprise, any other activity of a preparatory or auxiliary character
;
F) is used solely for any combination of activities mentioned in subparagraphs a)
to e), provided that the activity of the fixed place as a whole, resulting from this combination, has
preparatory or auxiliary character.
6. Notwithstanding the provisions of Sections and except as provided in paragraph 7,
constitutes a permanent establishment of the organization referred to in paragraph 1 the person, resident or non-resident
, which usually ends in the State in the name of 'firm itself contracts
different from those of purchasing goods.
7. Not a permanent establishment of the non-resident organization merely because it carries on business in the State
its business through a broker, general commission agent
, agent or any other agent of an independent status , provided that such

Persons are acting in the ordinary course of business.
8. The fact that a non-resident with or without permanent establishment in the territory of an enterprise resident
state controls, or is controlled, or that both companies are controlled
by a third party operating activities or not d ' company is not in itself sufficient reason
to consider any of those undertakings a permanent establishment of the other. ".

Art.
11 (Coordination with the existing provisions of the Law 13 October 1984, n. 91)

1. For the purpose of coordination of the provisions contained in Article 10 before with
current rules of the Law 13 October 1984, n. 91 and subsequent amendments thereto, shall be amended as follows
:
1) In Article 2, paragraph 1, the words 'as well as to permanent establishments' shall be replaced by the following
"as well as stable organizations of non-resident companies. ";
2) In Article 12, paragraph 1, lett. b) The expression 'for the subjects in the last paragraph of Article 20
applying the proportional rate of 17%' is replaced by 'for
subjects in the last paragraph Article 20 as well as to permanent establishments of non-resident enterprises
applying the proportional rate of 17%. ";
3) In Article 28, paragraph 1, the expression "(c) hiunque derives income is required to declare annually
(...) 'is replaced by the following:' (c) possesses hiunque income, including stable
organizations in the territory of the Republic of San Marino of non-resident companies, has
obligation to declare them every year (...). ";
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4) In Article 34, paragraph 1, the expression "(l) and society, similar to these institutions as well as individual entrepreneurs
(...) 'is replaced by the following:' (l ) and companies, institutions in the same class,
permanent establishments of non-resident companies as well as individual entrepreneurs (...). ";
5) In Article 39, paragraph 1, the expression "(i) persons who perform the activities referred to in Articles 19 and 20
, agricultural enterprises, the State, public and private entities, which correspond compensation
(...) 'is replaced by the following:' (i) persons who perform the activities referred to in articles 19 and 20, the stable
organizations of non-resident enterprises, agricultural enterprises , the State, public and private
entities that correspond remunerations (...). "".
CHAPTER IV


INCENTIVE RULES
Art. 12
(Predetermine of taxation for start-ups)

1. With This standard introduces a special tax regime, lasting between
a minimum of 3 years and a maximum of five years, designed to encourage new firms
during start-up, which provides for the predetermination of the taxation of income tax
, for the entire duration of the scheme, on the basis of objective and qualified criteria specified in the following paragraphs and
inferred by specific company project.
2. The pre-determination of taxable income is based on the forecast financial statements
enterprise (business plan) for the years of membership in the special scheme and on the following elements of the
company project as a whole:
- amount of investments in machinery, equipment and real estate for the purpose of
effectiveness evaluation and the organization of the consistency on the territory of the State
;
- Employment plan;
- Types of business activities and compatibility with the lines of development of the economic system
.
2. Within twelve months of the granting of an operating license, the new constitution
companies may submit to the Tax Office appropriate application on plain paper for admission to the special
regime. In this application must be accompanied by a detailed business plan with evidence of
investment and business plan for the period of membership of the special scheme. In the same question
, the taxpayer formula Tax Office a proposal for a predetermination of
taxation of income for the duration of the special regime. 3
. The Tax Office shall examine documentation within 90 days of receipt of
application referred to in paragraph 2 above and shall, even after comparison with the instant company,
appropriate draft agreement. The proposed agreement, together with the documentation and references
Tax Office, is transmitted to the Investigations
Committee responsible for an opinion on the merits. For the purposes of the aforementioned opinion, the Commission for Investigations
can formulate requests for clarification and proposed amendments to the draft agreement.
4. The Tax Office and the relevant Commission of Investigations, in assessing

Admission to the regime and in determining its period within the limits provided for in paragraph 1,
consider the elements of the business plan referred to in paragraph 2. These elements are also used
for the predetermination of income taxable and tax to cover the possible
most surplus income that previously agreed, which, compared to the business plan, can be reduced
, for each fiscal year, up to a maximum of 30% based on qualitative assessments
of the same.
5. The enterprise instant admission to the special regime is considered finalized with the signing
between the company and the Tax Office, subject to the unanimous opinion of the competent
of Investigation Commission referred to in paragraph 3 .
the agreement is binding for the Board and for the company.
6
6. The firm is required in relation to the fiscal years included in the period of admission
of the special arrangements, to the payment of income taxes computed on the statutory income tax predetermined
under the Agreement referred to in paragraph 5.

Art.
13 (Limits on the carrying forward of tax losses for start-ups)

1. Notwithstanding the provisions of Article 22 of Law 13 October 1984, n.
91 and subsequent amendments and additions, losses realized in the first three tax periods from
date of constitution of the new company may be included in the total income fall
subsequent tax years without limit of time, provided that you
relate to a new economic activity.
2. The losses carried forward as referred to in the preceding paragraph shall be determined in accordance with standards
used in determining the income of Law 13 October 1984, n. 91 and subsequent amendments thereto
.

Art. 14
(Tax Deduction for equity)

1. As from fiscal 2010, the subjects of tax other than individuals, including
stable business organizations non-residents referred to in Article 10 of this Decree-Law
can to be deducted from income taxable income, determined in accordance with the rules provided by the Law
October 13, 1984, n. 91 and subsequent amendments and additions, a share of its capital
used in corporate investment in each tax year.
2. The portions of equity deductible according to the preceding paragraph, expressed in percentage
extent, they are determined by a specific statutory instrument. 3
. Prices do not deducted in a tax year can not be accounted for in a
decrease in taxable income of subsequent tax periods.
4. The scheme referred to in this article is not compatible with that provided by the previous
Article 12 of this decree-law.


CHAPTER V ON RELATIONS WITH THE FINANCIAL ADMINISTRATION

Art. 15
(Interpello quote)

1. Each taxpayer can submit in advance in writing to the relevant offices of the
Public Administration, detailed and specific instances of interpellation concerning
the application of tax provisions relating to direct and indirect taxes to concrete cases and personal
if there are objective conditions of uncertainty on the correct interpretation and application of the same provisions
.
2. The competent Office's reply, written and motivated, binds the latter with exclusive
reference to the subject matter of the question of questioning. If it is not delivered to
taxpayer within 60 days from the date of receipt of the ruling, it is intended that the Office
agree with the interpretation proposed by the moment or the behavior and not the taxpayer
They may be imposed sanctions against the taxpayer limited to the issue
instance subject of questioning. It is null and void any act, also it contained tax or penalty
, issued in contravention to the answer. 3
. For some specific types of cases, behavior or transactions that will be identified in
special decree of the preliminary ruling procedure may be followed for the
7
predetermination of the taxable or tax based on the transaction object
interpellation.

Art. 16
(Tax Returns electronically)

1. As from the fiscal 2010 tax returns in the regulations in force
on general income tax and tax on imports made by taxpayers
and withholding agents must be submitted, including by means of a entity in charge, Office
Tax electronically within the statutory deadlines for their presentation.

2. For the sole purpose of the presentation of the statements, they consider those responsible for their submission
:
a) those registered in the register of business consultants, accountants and business experts;
B) the trade union associations of entrepreneurs and trade associations among
workers;
C) other officials identified by special decree. 3
. In order to support the organizational and procedural changes arising from the introduction
of the provisions of this Article, from 1 January 2011 until 31 December 2013
, to the entities referred to in paragraph 2 in charge of the electronic filing of declarations are
compensation, paid by the state budget, for each declaration sent electronically
. As a result of this fee, no costs may be charged to the taxpayer by
entity in charge relative to the activity of electronically transmitting, subject to
compensation possibly due to the preparation and processing of
tax return.
4. Special delegated decree, to be issued by December 31, 2010, will define:
- the technical and operational mode of transmission of tax returns;
- The specific mode of transmission by means of the persons responsible referred to in paragraph 2
;
- The amount of compensation referred to in the preceding paragraph and the procedures for payment.
5. The appointed pursuant to paragraph 2, to the end of the transmission of tax returns in
electronically on behalf of taxpayers, they are enabled by the Tax data transmission
contained in the statements. The certification is revoked when the conduct of transmissions shall
serious or repeated irregularities, or where there
of orders of suspension from the order of the professional belongs or in case of
withdrawing authorization to carry on the part of service tax.
6. The person referred to in paragraph 2 shall award the taxpayer suitable proof
stating the commitment to transmit to the Office electronically Tax tax return, together
its receipt or taking up assignment for its preparation.
7. The return is considered filed on the day it is received by the Tax
electronically. The filing of the declaration is given by the communication
Tax Office certifying the receipt of the declaration submitted electronically
directly by the taxpayer or through the persons referred to in paragraph 2. 8
. Failure to submit electronically tax returns on time
by law, and in the manner prescribed by this decree and the rules it has delegated,
involves applying to the taxpayer or to the withholding of measures and sanctions
by current legislation omission or delay in submission of the declaration.
The application of the measures and sanctions against the taxpayer in cases
precede occurs even when the reasons thereof, based on the documentation referred to in paragraph 5
, they are attributable to the entity in charge, did except the right of recourse of taxpayer
latter.

Art. 17

8 (Annexes to the tax return)

1. To simplify the taxpayers' obligations, will be waived the requirement to supplement the declaration of income
documentation proving the declared data, referred to in Article 31 of the Law
October 13, 1984, n. 91 and subsequent amendments and additions.
2. The obligation for each taxpayer, up to expiration of the period of limitation of
assessment action, the retention of documents proving the data subject of the annual return
for the possible transmission or display at the request of ' Tax office.

Art. 18
(Dates for submitting declarations and the amount due)

1. In order to make available in due time the data needed for programming economic
and of timely setting of financial policy and the state budget
:
a) the deadline for submitting tax returns of natural persons, legal persons and
of withholding is set at 30 June of the year following that
which the declaration relates;
B) the deadline for submission of annual declarations provided by law in

Concerning tax on imports (single phase) is set at 30 June of the year following the one where the
refers statement.
2. The terms for the payment of advances and balances required by law
13 October 1984 n. 91 and subsequent amendments and additions, by Law 22 December 1972 n. 40 and subsequent amendments thereto
and the Decree of 11 November 2004 n. 156 bearing the
"for the refund Regulation on imports" and subsequent amendments and additions
will be modified as a function of this Article by delegated decree to be issued by 31 December 2010.



TITLE III MEASURES IN SUPPORT OF THE ECONOMIC SYSTEM

Art. 19
(Facilitated Credit Extraordinary mentioned in n.109 / 2009 Law)

1. The period referred to in Article 5 first paragraph of the Law 109 of August 3, 2009 and of which
Article 1 first paragraph of the related Regulations of 22 October 2009 n. 2, already modified
with Article 27 paragraph 2 of Law 168 of 21 December 2009, they shall be extended to 31 December 2010.

2. The guidelines of a general nature in the evaluation of requests for access to the benefits of the Law
August 3, 2009 n.109 hired by the Evaluation Committee referred to in Article 2 paragraph 7 of that Act
assume full interpretive effectiveness with taking Authorized by the State of
Congress. 3
. The types of projects eligible for financing referred to in Article 4, as well as the amount of the contribution
for interest related to them by Article 6 of the law, can be varied
by delegated decree, subject to the instances have already been approved and permitted the entry into force of
this decree-law.

Art.
20 (Extension of the deadline for the payment of Tax General on revenues for operators in the financial system
)

9
1. Banking institutions have the right to defer payment of the first and second
payment General Tax on income they have for fiscal year 2010 up to a maximum
3 months after the deadline for their payment under Law 13 October 1984 n.
91 and subsequent amendments and additions, without the application of default interest or penalties
of the exemption.
2. The extension may take place prior notice, specifying the payment plan,
to be forwarded to the Tax Office by 10 August 2010 in relation to the payment of the first installment
and by 15 November 2010 in relation to the payment of the second down payment. 3
. They are subject to the possibility of the payment of compensation with tax credits
permitted by Article 88 of the Law n.165 / 2003.

TITLE IV FINAL DISPONSIZIONI



Art.
21 (Final Provisions)

1. Except in cases expressly provided for, by delegated decree can be made
integrative and interpretive provisions than those contained in this decree-law.
2. The pre-determination of taxable income for business start-up, scheduled
in the special arrangements referred to in Article 12 shall apply from the fiscal year 2011
.


Given at Our Residence, this day of August 8 2010/1709 dFR



THE CAPTAINS REGENT Marco Conti - Glauco Sansovini




THE SECRETARY OF STATE FOR INTERNAL AFFAIRS Valeria Ciavatta


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