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October 1984 N 91 Set General On Income

Original Language Title: Ottobre 1984 N 91 Imposta Generale Sui Redditi

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Law 22 January 1993 n. 9 (published in the February 1, 1993)
AMENDMENTS TO THE LAW October 13, 1984 # 91 "GENERAL TAX ON INCOME
"

We the Captains Regent of the Most Serene Republic of San Marino and promulgate
send for publishing the following law approved by the Great and General Council
its meeting of 22 January 1993. TITLE I °

(Changes and additions)
Art. 1
At Law 13 October 1984 n. 91 and subsequent amendments shall be made the following changes:
1) the first paragraph of art. 5 is amended and supplemented:
"I do not separated spouses can opt for the tax applies to each of them on half of the household income consists of the income
or income of both spouses, and those with both | || defendants pursuant to paragraph 2 of art. 4, net of deductions for expenses and liabilities provided
art. 6. tax so resulting are not, because belonging to taxpayers, the || | tax deductions in art. 9, excluding the deduction for the dependent spouse, for a total family income exceeding
L. = 15,000,000. the option can not be exercised at the core || | family abroad no profit occasional income other than those attributable to income land
, to capital income and to those qualifying for separate taxation. the pension income disbursed
in the Republic of art. 8a concrrono to the determination of income
echelons and for this purpose shall be deemed inserted starting from the bracket and more 'low rate. "
2) Article. 6 is amended and replaced:
"From the total income determined in accordance with prcedenti articles, if not deductible in
determination of individual income and cumulatively to the other deductions allowed by law
Tax, are deduced, if documented - except for point g) - the following expenses incurred by the taxpayer
and people whose incomes were the defendants and were aggregated to his:
a) funeral expenses for an amount not exceeding L. = 3,000,000;
b) in full, the interest expense paid in dipend nce of loans or agricultural or real estate loans with
primary or state guarantee, to an extent greater than $ 3,000. 000 =, interest expense
paid in respect of loans or farm loans or other real estate-backed nature
mortgage;
c) compulsory social security contributions under Articles. 1 and 5 of Law 11 February 1983 n. 15
well as to art. 6 of the Law of 25 November 1980 n. 87 and welfare contributions
required under Law 26 September 1980, n. 73;
D) the premiums paid for life insurance s ipulate with term policies over 5 years,
those for accident insurance and voluntary social security contributions in the total annual limit
L. 3,000,000 ;
E) periodic payments paid to his spouse d slope legal and effective separation or
declaration of nullity or termination of the civil effects of marriage, provided that they are on
judicial decisions;
F) the annual school fees for the enrollment in professional courses, secondary or university education
; g) the sum of L. 6,000,000 = to assist in the family to people
permanently sick, when it is not paid to the accompanying sign of where the
law 13 November 1991 n. 138;
H) expenses for dental and medical implants and those pr orthodontic and dental care to an extent
total that is greater than $ 3,000,000 =;
I) 50% of the rent of buildings used for civil dwellings;
L) donations or donations to the state and public bodies;
M) donations or donations to the Catholic Church and associations or entities for purposes
cultural, social, recreational, sports non-profit-making, to an extent greater than $ 3,000,000
=.
The deductions above are not up if the Commission under Article. 41 given such
investigation summary of the total income of the taxpayer.
The deductible liabilities may be adapted or changed by Regency Decree on the proposal of
State Congress. "
3) Art. 8 is amended and replaced:
" On the income referred to in previous article the tax is determined, with the exceptions provided in the following paragraphs
, by applying to the amount of each of them the rate of 12%.
On the income referred to in subparagraph a) of Art. 7 applies the rate of 5%.
With regard to the income referred to in subparagraph b) of Art. 7 applies the rate of 2.5% for incomes not exceeding
to L. 40,000,000 and that of 5% for incomes other body. "

4) After Article. 8 of the law 13 October 1984 n. 91, as amended, the following Article is inserted. 8 bis
:
"The income referred to in subparagraph c) of Art. 7 shall be construed subject to separate taxation as no
compete with other income cmplessivo to form the income of the recipient, subject to the
provisions of art. 5.
the taxation of pension income is carried out as follows:
a) for income levels up to the amount of the minimum pension is determined annually applies
the rate of 1.20%;
b) for other income levels apply lealiquote corresponding to the incidence rate
overall tax burden on employment income net of deductions subjective || | from the tax which they are entitled. These rates are applied with the progression system continues
related to income brackets per million by liquidating the rate that corresponds to the upper echelon
when levels of pensions paid do not coincide with the echelons.
5) Article. 9 is amended in paragraphs 5, 6 and 7 and integrated in paragraph 8, which are then replaced:
- (paragraph 5): "He deducted, also, L. 150,000 for = quota-free ".
- (Paragraph 6): "He deducted, also, L. 100,000 = in place of analytical deduction of liabilities
indicated in art. 6 - excluding that of the letter c) for employees - with the right to
ask in the annual tax deduction of actual liabilities.
- (paragraph 7): "As a result of the tax system provided for in art. 8a percipients income from pension
:
- need not apply the tax deduction for free allowance;
- Must report the deduction referred to in paragraph 6 - a par of analytical deduction of liabilities deductible
- primarily to the retirement income should possess other
ordinary income subject to taxation. "
- (Paragraph 8): "If the formation of the tax base contributes to the employment income, it
shall deduct from a predetermined sum each year with Reggenziale Decree by way of
costs of producing that income."
6) art. 12 is amended and replaced:
"the overall tax is levied as follows:
a) for natural persons, applying the progressive rate in increments indicated in the table attached
this Act;
B) for the subjects mentioned in the last paragraph of article. 20 by applying the proportional rate of 24%;
C) for the entities referred to in Articles. 26 and 35, fourth paragraph, dismissing the proportional rate of 24%
corporate income tax and the progressive into brackets on the remaining income for which they are paid
progressive tax rates that are applicable after they are added income business
. The aforementioned persons, when the declaration may apply the progressive tax also
on business income.
If the situation mentioned in the first sentence of point c), liabilities provided for by art. 6
are deduced primarily from revenues that were added to the enterprise. "
7) The letter b) of the third paragraph of Art. 19 is hereby s tituita:
" b) income economic arising from the use of trademarks, intellectual property, to copyright
, industrial inventions and the like and in any case arising from the execution of works and
of technical-vocational services, provided they are not achieved conduct of a business by subjects
residents; such income would form the tax base to the extent of 75%, except
for income arising from technical and professional services if the registrant deems to deduce analytically the costs
duly documented. Such flat-rate reduction of income tax
does not compete for incomes the ITU ization of economic rights
by inheritance or donation. "
8) The first paragraph of art. 23 shall be amended and replaced:
"interest expenses are deductible when browsed paid to persons resident in the territory of the Republic
or to companies or lenders. They are also deductible interest expense
paid to financial non-resident companies the entities referred to in paragraph 12 of art. 39 and those
paid on bonds. "
9) The first paragraph of art. 26 shall be replaced:
" The companies whose income is defined by the provisions of art. 20, and which are not already required to
preparing the financial statements, when in the course of the reporting provisions of art. 34
have earned the amount of revenue greater than $ 1,200,000 =
are obliged to fill in the financial statements using the account of profits and losses pri next two years. "
10) The first paragraph art. 27a shall be amended and replaced:

"Those tax-natural persons who hold a license issued pursuant to the Laws
25 January 1990 n. 10 and 29 May 1991 n. 69, if the volume of purchases made in the previous || | has not exceeded L. = 500,000,000, have the right to ask the tax Office, within the month of September
each year, the flat-rate taxable income for the next year. "
11) The fifth paragraph of art. 32 shall be amended and replaced:
"Should the taxable persons are companies or entities ass milati, required to prepare the financial statements, should
file the return by July 31 of each year. That period is extended to
entities referred to in Article. 26 and to those in art. 35, the fourth c mma ".
12) The last paragraph of art. 34 is amended and replaced:
"The year of reference cited in the article, refers to the start of economic activity to
second year exemption from the accounting records provided by art. 35 and the second year of
statutory accounts mentioned in the first paragraph of art. 26 and the fourth paragraph of art. 35 ".
13) The fourth paragraph of art. 35 is amended and replaced with: "The same persons may opt
for the tightness of all the accounting records referred to in the preceding article.
The option must be exercised within the month of January each year and the taxpayer bbliga for the same year and for the next
".
14) Art. 39 is amended and replaced:
"Persons performing the activities referred to in Articles. 19 and 20, agricultural enterprises, the State, institutions public and private
, which correspond compensations for performance dependent work of art.
18 must operate at the time of payment of such compensation, a final withholding
general advance payment of future income with is required to pass. the
withholding tax is proportionate to the estimated annual income in relation to the rates in force
and taking account of the deductions in art. 9 which must be declared by the employee
under its responsibility.
the solenoid adjustment should be levied until the month of February of the tax year following
also based on the provisions of the first paragraph, item 2) of art. 29, where the
employee exercises the powers accorded to it in paragraph same.
the subjects mentioned in the first paragraph must operate on the sums paid by way of
severance of employment dependent unaritenuta tax equal to that governed
art.
8. The State, the Institute for Social Security and San Marino authorities that provide retirement income
referred to in subparagraph c) of art. 7 carry out the withholding tax at the rates provided for by article 8 bis
. The withholding tax is proportionate to the tax deduction in the first paragraph of Article. 9, the
taxpayer must state on their own respon skills and to that referred to in paragraph 6 of the said Article
.
The subjects mentioned in the first paragraph that correspond to non-residents, in cash or in kind and
however denominated, the income components in art. 19 must operate on the entire amount of such income
a withholding tax of 20%. The above it shall also operated on
compensation for the termination of ratios available from employment provided for by the letter
b) of art. 7.
If the income referred to in the preceding paragraph are produced entirely outside the deduction is reduced to 10%
.
The subjects mentioned in the first paragraph that match fees of any description for
agency performance, representation, similar trade, must deduct tax at
as tax, the 3% measurement, on the amount of compensation when the recipient reside
abroad.
On income pursuant to subparagraph d) of the first paragraph of art. 7 has operated a withholding tax rate of 12% in
.
The deductions referred to in paragraphs 6 and 7 of this Article shall also be made when the
fees or allowances are paid by the State, by other public companies or autonomous entities.
Sui benefits of luck or skill games, resident organizers must operate the deduction
art. 8 with the right to rivals.
All persons obliged to make annual compilation of the financial statements with the profit and loss
, corresponding interest expense deductible percipient other than companies or
lenders, must impose a withholding tax, as a tax and required to pass, 13%
relating to those interests. The withholding tax on interest paid by credit institutions can essre
varied by Regency Decree on the proposal of the State Congress.

Credit institutions, notwithstanding the preceding paragraph, perform the withholding tax with the right to
revenge.
The withholding tax on interest payable pursuant to subsection 12 paid to companies and similar entities -
excluding entities referred to in the penultimate paragraph of art. 2 - means operated as a down payment.

The general tax on the year's income tax paid by the aforementioned companies is liberating profits distributed by corporations are not assoggettai to withholding tax, even for subjects
in receipt of distributed profits.
The withholding tax in art. 8 of Law 20 December 1984 n. 117 is operated to the extent of 2.5%
. "
15) The second paragraph of Art. 41 is amended and replaced:
" The Commission of Investigation of the income of society, assimilated entities , major companies and
subjects in art. 35, fourth paragraph, is composed of three members elected by the Council Great and General
between competent citizens in tax matters, one with the President. "
16) features The first paragraph of Art. 42b it is so integrated and replaced:
"the tax Office collects data and news that apply to ensure the accurate determination of
income; check the declarations submitted by taxpayers and withholding agents;
regularly checks the maintenance of accounting records; It notes the omitted statements and those
considered as such in all respects; submit to the Committees referred to in Article. 41 proposals for
assessments based on adjustments and for the official investigation; It executes the instructions issued by the
Commissions. In addition, the Tax Office in the ordinary control of
tax returns proceeds to correction when it detects and rori transcription of the sums, calculation, tax settlement
, pursuant to Legg Tax or not
compete in whole or in part the deductions from income or tax deductions subjective. The Tax Office compiles
an internal role for the collection when the adjustments result in a greater tax burden and
invites taxpayers to pay what turned out they had. If the taxpayer does not comply
invitation to pay the additional tax the rectified figures that are submitted
ascertain the appropriate Committees, to which the role of collection is transmitted
for knowledge. "
17) art. 47 is integrated as well:
"Under Article. 2 of Law 17 May 1984 n. 9, as amended by art. 5 of Law 19 January 1989 n
. 5, if notification in hand of the assessment is not possible for the unavailability
such notification is made at valvas palatii and the taxpayer is given the news, with
transmission of the assessment, by means of delivery of letter registered mail with return receipt
. The registered item is deemed to be received after 15 days of storage at the Post Office
. The deadline for appealing against the assessment act from the day following the expiry of the period
first indicated.
The procedure referred to in the preceding paragraph also applies in cases where the taxpayer has not ascertained
tax domicile in the territory of San Marino. "
18) The first paragraph of art. 51 shall be amended and replaced :
"the withholding made pursuant to art. 39 are collected by direct deposit to
State Treasury. These payments must be completed within the two months following that in
which implemented withholding tax, or that in which the monthly income
employee. "
19) are accrued The second paragraph of 'art. 56 is so integrated es stablished:
"When the tax Office has reasonable grounds dritenere the taxpayer to escape with
any means to pay the tax, after hearing the body that has established an income ,
can fill a special role at any time, to be levied within 30 days of notification
individual, that is made to the taxpayer by the State Treasury, after the enforceability of the
role by the Commission of Balance. Stes in the procedure - with the sole obligation to inform the competent
Commissions of Investigations - can be practiced at the request of the taxpayer who has
need to define the resulting tax gradients act of assessment. "
20) the third paragraph of art. 83 shall be amended and replaced:
"the companies which benefit from tax breaks for effect of Law 13 May 1959 n. 19
17 September 1960 n. 26, July 7, 1977 n. 39, March 28, 1984 n. 36, until the expiry of the aforesaid
exemptions, must pay the tax on income at the following rates proportionate to
exemptions:

- Law No. 1959. 19: 15% tax rate;
- Law No. 1960. 26: 5% tax rate for the first ten years of exemption and 15% tax rate for the next decade
;
- Law No. 1977. 39: 15% tax rate;
- Law 1984 no. 36: 15% tax rate. "
Art. 2
The table with progressive rates for the general tax on income brackets attached to
Law 30 December 1986 n. 155 is amended and replaced by the following: |
|| INCOME TAX Up to 18,000,000 12% on the full amount
from 18,000,000 to 30,000,000 + 17% on the 18 million eccedent
from 30,000,000 to 50,000,000 + 23 % on the eccedent 30 million
from 50,000,000 to 90,000,000 + 29% on the eccedent
50 million from 90 million to 170 million + 35% on the eccednt
90 million from 170,000. 000 to 300 million + 40% on the Ecced nt 170 million
from 300,000,000 to 450,000,000 + 45% on the Ecced nt 300 million from 450 million + 50% on the portion exceeding 450 million
| || Art. 3
the art. 13 of Law 22 March 1986 n. 38 shall be amended and replaced:
"the undertakings art. 20 of Law 13 October 1984, n. 91 and replaced: "The undertakings referred
art. 20 of Law 13 October 1984, n. 91 that are admitted to bookkeeping simplified
can deduct from income in respect of costs and expenses not documented , the sum of L. 2,500,000
= ie a flat rate of 6% to be calculated on the costs accounted for up to a maximum amount of
L. 120,000,000 = the same costs.
the subjects in art. 19 of the law cited above can be deduced, the same way as in the preceding paragraph
, the sum of L. 5,000,000 = ".
Art. 4
not be due payments or tax refunds u tax return when the amounts do not exceed L. 10,000 =
.
Art. 5
The declared income must be rounded to L. 1,000 = default when the value of the final three digits
is less than L = 500 and rounding up otherwise.
Art. 6
Individuals within the tax return can devote 3 per thousand of income tax
said, to be taken from the general tax revenue, the "Fund
interventions in support of humanitarian activities , solidarity and social "set up by the Agreement between the
Republic of San Marino and the Holy See signed April 2, 1992 and ratified by Decree
Reggenziale 30 June 1992 47.
The aforementioned subjects, always on the tax return, if they intend to share referred to in the previous paragraph
should be managed by Cattoli Church in San Marino or other entities or associations that
will be subsequently determined.

TITLE II (and Provisional Rules)
Art. 7
The following provisions contained in Title I °:
a) art. 1 point 1);
B) art. 1 point 2);
C) art. 1 point 8);
D) art. 1 point 11);
E) art. 1 point 16);
F) art. 1 point 20);
G) art. 3);
H) art. 4);
I) art. 5);
L) art. 6);
Apply
from the declaration of income relative to tax year 1992.
Art. 8
The provision in Article. 1 point 10 of Title I ° is also applicable to the flat-rate taxable income

1993. To this effect, the deadline for the application of flat-rate, in accordance with art. 27a of Legg
13 October 1984 n. 91 and subsequent amendments shall be extended to the second month following the entry into force of this Act
.
Art. 9
This Law shall enter into force on the 5th day following that of its legal publication.
Our Residence, this day of 28 January 1993/1692 Foundation of the Republic THE CAPTAINS REGENT

Romeo Morri - Marino Zanotti

THE SECRETARY OF STATE FOR INTERNAL AFFAIRS
Antonio Lazzaro Volpinari