LAW 22 March 1986 n.38 (published on the same date)
measures on taxation.

We the Captains Regent of the Most Serene Republic of San Marino
promulgate and publish the following law approved by the Great and General Council
its meeting of 22 March 1986. TITLE I

Abroad Art.1 income products

(taxation of foreign income)
The taxation of income earned oestrus, when it is not called to regulatory conventional
with Foreign countries, is governed by the provisions contained in this title, the
Article 4, last paragraph, of the law 13 October 1984 n. 91.

Art.2 (capital Wages, land and buildings)
The capital gains tax, the land and buildings are taxed with
system of separate taxation, the of 2%. Whether such income is exempt from income tax
in the country in which they are produced or considered as such, the same income is not taxed
.

Art.3 (of Compensation of employees)
The compensation of employees, when they are not paid by those who in the State
the domicile, residence or office, are excluded from the levy tax.

Art.4 (Retirement Income)
The retirement income is subjected to tax when you have not been or are not
subject to the payment of income taxes in the country entity that supplies retirement.

Art.5 (self-employment income)
The self-employment income subject to withholding tax as a tax are subject to a
tax levy, as determined by the proportion of the relationship system costs, accounting for 10% of the tax or additional tax
San Marino that the taxpayer has to pay as a result of the complaint
of foreign income or accumulation of such income with those produced in the territory.
The self-employment income subject to levy of tax statements are subject to taxation
with the separate taxation system, in the proportion of 2%.
The income referred to in the previous paragraph are not subpage sti to tax when profit
in subjects that do not fall insurance obligation laid down in Act 11 February 1983 n.15.

Art.6 (corporate income)
The business income, subject to withholding tax as a tax, they are subjected to sampling
tax equal to 10% of sets or sets of m ggiore San Marino.
The business income earned by businesses that serve the San Marino tax on declaration
are subject to levy tax or system of separate taxation, to the extent
1%.
When the corporate income tax profits to a recipient who plays the role of agent, broker,
representative of trade and Intermediary on behalf of a party other than those mentioned in Article
. 3, except that the income is taxable at 10% of taxes or higher tax
San Marino.

Art.7 (Other income)
The income other than classified in previous articles or arising from speculative operations
are subject to tax with the system of separate taxation, the rate of 2%.

Art.8 (Tax Return)
All foreign income - subject to tax or not - must be declared made
except for by substantial capital gains in interest, premiums and other fruits
arising from bonds and any other securities other than credit by the actions; in case of failure to declare,
regardless of treatment provided by this law, the penalties provided for by Law
13 October 1984 n. 91 ir dditi products in the territory, when the rules of the aforementioned
law does not provide for specific sanctions.
The income referred to in the previous paragraph are relevant gl effects of internal certification made
except for income attributable to the letters a), b), d), e) of the first paragraph of art. 7 of Legg
13 October 1984 n. 91.
Art. 9
(formal requirements)
Where income by law shall be subject to withholding tax as a tax, such withholding
it must be documented; otherwise it is deemed not done.
Where income is subject to tax on the declaration, that declaration must be produced in
copy and place the payment it must be documented;
if such a declaration is submitted after the deadline for submission of the declaration util
under the law 13 October 1984 n. 91 foreign income is charged to tax
next period.
When the income is exempt in the manufacturing country or where they are regarded as such, the exemption with

The exception provided for in Article 8, it shall be declared and substantiated or documented.
The documents relating to the fees and revenues of cuagli Articles 5 and 6,
issued to non-residents, when they are not already subject to approval for export, must be endorsed by the Tax
, prior to their delivery to customers.
Art. 10
(Taxable persons)
The foreign income, as a result of the rules contained in the law 13 October 1984 n. 91, must be declared by
entities that have in the State of domicile, seat or habitual residence.

TITLE II Compensation for the performance of elective office and public functions
Art. 11
As from 1 January 1986, such allowances and compensation referred to in subparagraph d) of the third paragraph of Article
. 18 of the law 13 October 1984 n. 91 are subject to separate taxation at the rate of 15%
. TITLE III

tax reimbursements to employees
Art. 12
Employees who find themselves in the conditions provided by art. 29 of Law 13 October 1984 no
. 91, for the exemption from income tax, and which result in the creditors of
annual tax adjustment, they may seek reimbursement of their tax deduction and not
due to the employer which are dependent on the date presentation of
tax return provided for by the aforementioned law.
In this case employees are exempt d ll'obbligo submitting the tax return
. The tax refund is made based on the results of the Mod. IGR "G", it approved
with Regency Decree 21 October 1985 n. 121.
The employer withholds the tax reimbursed employees at periodic
payment of tax withholdings on income from employment and should be sent to the Tax Office
reporting of individual repayments, within 30 days of their execution, using the printed
that will be prepared by the Secretariat of State for Finance and approved by Decree
Reggenziale.
The employee must attach a copy of the printed completed prdetto
in part due him, to the employer's certificate marked as a model IGR "G" or
with your tax return, if still presented. TITLE IV


income of smaller companies Art. 13
(Flat-rate deduction of costs)
The companies whose income is defined by the provisions of Article 20 of the law 13 October 1984 n.
91 and authorized the keeping of simplified accounts may deduct from income,
title of undocumented costs and charges a flat rate of 3% to be calculated on accounted
costs, up to an amount maximum of 100 million of the same costs. TITLE V


Separate taxation Art. 14
Paragraph nine art. 39 of the law 13 October 1984 n. 91 is amended as follows: "On the income provided
by the letter d) first paragraph of art. 7 is operated in a withholding tax of 15%." TITLE VI

Interest of Cooperative Societies in undivided property
Art. 15
The interest referred to in point b) of art. 6 of the law 13 October 1984 n. 91
paid in respect of loans or mortgages in favor of the cooperatives are attributable to shared ownership, in order
tax, for individuals who have funded the cooperative members to take advantage of the right of ownership
.
Order the citizen who wants to deduct from their income the interest expense under paragraph
above, it shall produce a statement dellacooperativa which is a member certifying all
loans or loans with principal or ancillary cover State or other mortgage-backed
where the cooperative has benefited, the portion attributable to the shareholder and the related interest paid during the year
tax.
The correlation between individual statements, which the cooperative will have to retain a copy and
overall situation of loans or loans enjoyed by the same and the total interest paid will be
'' found during the examination of the budget cooperative. TITLE VII


Final and transitional provisions Art.
The provisions of Article 16. 12 shall also apply to the income of employees related to the tax year 1985.

The deduction referred to in Article. 13 also applies to products of business income in 1985.
Art. 17
This Law shall enter into force on the 5th day after its legal publication.
Our Residence, this day of 22 March 1986/1685 Foundation of the Republic THE CAPTAINS REGENT

Pier Paolo Gasperoni - Ubaldo Biordi

THE SECRETARY OF STATE FOR INTERNAL AFFAIRS
Alvaro Selva