LAW 13 October 1984 n. 91 (published October 26, 1984) General Introduction of the tax on income. 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 at its meeting on 13 October 1984. TITLE I GENERAL RULES Art. 1 (Prerequisite) All income, by whomsoever held, in cash or in kind, continuous or occasional, from any source are subject to general income tax provided for by this law. Art. 2 (Taxable persons) The tax is applied to all income, wherever produced, owned by resident individuals and natural persons not resident in the State. For non-residents are taken into account only income produced in the State, or regarded as such. The tax also applies to all income, wherever produced, owned by the Company or similar bodies. The Company simple, general partnership and limited partnerships are not taxable persons; the revenues generated by these companies, in proportion to the profit-sharing quotas are allocated to each member regardless of 'ffettiva perception. Art. 3 (Territorial and tax period) are considered in each case produced in the State to the effects of charging non-residents: a) income from land and buildings included ithin the boundaries of the State; b) property income paid by the State or by persons acting in the territory; c) the compensation of employees paid in the State or abroad by residents in the State; d) the self-employment income or assimilated and business derived from activities performed in the State, or on behalf of persons resident or having a permanent establishment in the State; e) any other income from operations or activities carried out in the State or related, directly or indirectly, on property located within the boundaries of the state. For each calendar year corresponds to an autonomous tax obligation. Art. 4 (Taxable amount) The taxable amount is the total income consists of all income of the taxable net liabilities and expenses deductible prescribed by the Tax Act, and with the exception of: a) income subject to separate taxation; b) the income subject to withholding at source by way of tax; c) the exempted income. A component of the income of the taxpayer, as the same defendants: a) income, excluding work because their incomes, minor children of cohabiting including recognized natural children, adopted children and affiliates; b) other people's income referred has the free disposal or management with no requirement of reckoning. Within one year after the entry into force of this Act a special law will establish the criteria pr the taxation of income earned oestrus, that form the basis of assessment of the tax payer, as well as for the deduction of taxes paid in definitively on the above income in the country of production. Art. 5 (the family Taxation) Non separated spouses can opt for the tax applies to each of them on half of the household income consists of the income or the income of both spouses, and those both defendants under the second paragraph of Article 4, net of deductions for expenses and liabilities under Article 6. tax so resulting making, because due to the taxpayer, the tax deductions provided for in Article 9, other than under paragraph . 1 of the first paragraph to the total household income of more than L. 10,000. 0. The deductions mentioned in items 2-6 of the first paragraph of that article, the only effect of a declaration, are reduced by half for each spouse. The taxpayer who is in the condition of exemption from income declaration provided for in paragraph 2 of Article 29 and has charge of the spouse or one or more 'children or, in the absence of a spouse, two or more' children, is recognized faculty to share their employment income for the coefficient 3 and pour the general tax that corresponds to the one to be settled, with a single statement, on 3 distinct tax bases resulting from the splitting of income. In such cases, as due, to the taxpayer's tax deductions they are applicable in any case provided for in Article 9, subject to c ntenuto device in the preceding paragraph. Art. 6 (deductible liabilities) from total income determined in accordance with Articles Prev nti if not deductible in the determination of individual income and cumulatively to the other deductions allowed by law
Tax, are deducted, if documented, the following expenses incurred by the taxpayer or persons whose incomes were the defendants and were aggregated to his: a) funeral expenses in an amount not greater than $ 1,500,000; b) in full, the interest expense paid in dipend nce of agricultural loans or mortgages or with primary or state guarantee; to an extent not greater than $ 2,000,000, interest paid in respect of agricultural loans or mortgages or other types of mortgage-backed; c) compulsory social security contributions referred to in Articles 1 and 5 of Law 11 February 1983 n. 15 as well as in Article 6 of the law 25 November 1980 n. 87 exclusion of all other contributions also associative; d) the premiums paid for life insurance s ipulate spanning more than five years to the policies and voluntary social security contributions in the total of L. 800,000 annual limits; e) periodic payments paid to his spouse d slope legal and effective separation or a declaration of invalidity or termination of the civil effects of marriage, and providing that by judicial decisions; f) school fees for attending, after primary school, professional courses of secondary or university education; g) the cost of assistance to sick people to an extent greater than $ 3,000,000; h) expenses for dental and medical implants to an extent greater than $ 2,000,000; i) 30% of the rent of buildings used for the civil use. The deductions above are not up if the Commission referred to in 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 the State Congress. Art. 7 (income subject to separate taxation) On the following income tax applies separately, in the manner of the next article: a) capital gains in art. 27, including those made from the sale and liquidation of company, excluding those relating to business assets or other company or entity pertaining; b) salaries and arrears on previous years; however, the allowance paid as of the end of the employment relationship or assimilated; compensation for the termination of agency relationships or other coordinate and continuous collaboration relationships, however denominated and paid by anyone; c) the pension income paid by the State, by the Institute for Social Security and social security institutions of other countries; d) starter realizable relating to the exercise of economic activities carried out professionally organized; e) the benefits of the fate or AB ity games. It is assumed a starter realizable when a license or authorization is to be waived by the owner and then is to be headed or managed in any form to another entity, unless proved otherwise. If the new owner or operator may continue activities in stes the premises of the previous evidence to the contrary is not allowed. The presumption referred to in the preceding paragraph shall not apply where a license or authorization is to be waived by the owner in favor of a famili king partner or a family member up to the second position in a straight line, even if not sharing. Art. 8 (a separate taxation mode) On the income referred to in the previous article, the tax is determined, with the exceptions provided in the following paragraphs, applying to the amount of each of them the bound rate corresponding to half the total income, net of taxpayer determined in the two years preceding the year in which it arose the right to collect or in which they were perceived to income referred to in point b) of Article 7. If in any of the two previous years there has been taxable income applies the rate of 15%. Income referred to in subparagraph a) of Article 7 shall apply a rate of 5%. Bonuses still paid as of the end of the employment relationship would form the tax base by 50%. On taxable so determined apply a proportional tax equal to the more 'general tax low income. The levying of the aforementioned proportional tax is graduated in time, at rates of tax reliefs, as follows: 1985: 75% 1986: 70% 1987: 65% 1988: 60% 1989: 55%. The income referred to in subparagraph c) of Article 7 are taxed on income at the rates of the following table: ML 1990 8 3% 9 3.46% 10 3.93% 11 4.40% 12 4.86% 13 5.33% 14 5.80% 15 6.26% 16 6.73% 17 7.20% 18 7.67% 19 8.13% 20 8.60% 21 9.07% 22 9.53% 23 10% 24 10.47% 25 10.93% 26 11.40%
The rates above, provided that the 3% on the income level corresponding to the minimum pension, are gradually riproporzionate at every change of the maximum amount of pension payable; the reproportioning conil expected in the table method, where the rate more 'high corresponds to the maximum pension is currently required by law, is carried out by comparing the rates to the general tax rate of occurrence related to a job dependent on the gross income corresponding to the gross amount the maximum pension liquidated. The taxation of pension paid by the Institute for Social Security, according to the criteria and the measures set out in the preceding paragraphs, is graded by the rate constant breakdown corresponding to pension levels in the period 1985 - 1990. On the benefits arising by fate or skill games applies the rate of 15%. Art. 9 (subjective Deductions from tax) from income tax owned by individuals are deducted: 1) L. 100,000 for a dependent spouse or, in the absence, for the first dependent child; 2) L. 20,000 for a dependent child; 3) L. 80,000 for two children; 4) L. 140,000 for three children; 5) L. 200,000 for four dependent children; 6) L. 60.000 for each additional dependent child; 7) L. 50.000 for each other dependent in letters d), e) of the second paragraph. They are considered dependents: a) the spouse not legally and actually separated; b) the minor children, including natural children recognized, adopted children, affiliates and illegitimate children not recognized as long as cohabiting with the taxpayer; c) the children of legal age unable to work permanently mod and those aged up to 26 who attend legal courses, including natural children deemed adopted children, affiliates and illegitimate children not recognized as long as cohabiting with the taxpayer ; d) parents and in-laws over the age of 60 years but not cohabiting; e) relatives and in-laws who actually exercise their right to food. The persons referred to in letters a), b), c), d) and e), they are considered dependent if they have their income for an amount less than the annual payable for the purposes of social pension to the extent provided for in Article 45 first paragraph of the Law 11 February 1983 n. 15. The tax deductions for dependents are proportional to the months of the year and do not compete with non-resident taxpayers. They also deducted for free allowance: 1) L. 100,000 if the total gross income is less than L. 6,500,000; 2) L. 80.000 if the total gross income is between 6,500,000 and L. L. 15,000,000; 3) L. 60.000 if the total gross income is greater than $ 15,000,000. Tax deductions for exempt portion will not appl cano to percipient of retirement income. Are deducted, also, L. 50,000 per year in place of analytical deduction of liabilities set out in Article 6 - excluding that of the letter c) for employees - with the power to request, in the annual statement, the deduction in the actual measurement. If the formation of the tax base combine the income of employees of one or more 'persons, for each of them, it shall be deducted from the tax, in respect of costs relating to the production of income, an amount equal to 3.5% to be calculated on gross salary up to a maximum deductible amount of L. 875,000. Tax deductions pertaining to the employment income production are calculated in relation to the period of the year and are calculated to the gross tax competition relating to the compensation of employees. If the formation of the tax base pertaining to contribute income workers, settlers and farmers, for each of the recipients can apply the following additional percentage tax deductions to be calculated the tax on the net pr such income: 1985: 38% 1986: 32% 1987: 24% 1988: 16% 1989: 8%. If the formation of the tax base of the household contributes, with only income from employment, income provided for in Article 16 pertaining to housing occupied by the same family unit applies a tax deduction of L. 60,000 which is reduced to L . 35,000 in the presence of deductible liabilities referred to in point b) of the first paragraph of Article 6. the tax deductions and income levels provided for in this Article shall be reviewed annually and may be adapted or changed by Regency Decree on the proposal of State Congress. Art.10 (Exemptions) are exempt from tax: a) income earned in the exercise of their functions by the diplomatic and consular agents of the United
esters; subject to reciprocity incomes of employees of diplomatic and consular missions of foreign states who are not also citizens of the Republic; b) the income of the land and buildings belonging to Ecc.ma Room; c) the income of rural buildings or portions of buildings and related assets used by the owner and by the tenant of the land which they serve, and are intended for: c1) a dwelling of those who, with their work, attend to the cultivation of the soil manual or maintenance of fund; c2) to the shelter of the cattle fed from the bottom product and indispensable for the working of the fund; c3) the conservation and before handling of the fund products; c4) to the custody of the machines and tools necessary for cultivation of the soil; d) they are also exempt from tax: d1) income of residential properties owned by cooperative societies referred to Legg April 24, 1980 n. 32, for a period of 5 years if constituted in the form of cooperative to property divided, for a period of 10 years if constituted in the form of the cooperative in undivided property; d2) for a period of five years as income from real estate r healed or restored under the PRG Law; e) for a period of 10 years, income from land already unproductive, dall'inizo with effect from the first crop year in which they gave a normal production; f) allowances, prizes, tokens and the like provided the citizens who provide volunteer service in the uniformed corps of San Marino and in public musical bands; g) the amounts paid pursuant to Law 2 December 1982 n. 110; h) the sums paid by way of family allowances; i) the amounts paid by way of social pension to the extent provided by the first paragraph of Article 45 of Law 11 February 1983 n. 15; l) income from companies, associations, institutions and bodies which are not for profit other than those directly related to the activities listed in Article 20, except among the latter income, taken occasionally to those achieved in a complementary or instrumental way to some activities institutional. Art. 11 (Classification of revenues) Revenues are classified as follows: - Category I - income from capital - Category II - income from land - Category III - income from buildings - category IV - income from employment - Category V - income self-employment - category VI - business income - category VII - different incomes. Art. 12 (Levying) The general tax is levied on the taxable amount provided for in Article 4. At the income so determined, for individuals, the progressive rate applies for echelons required by the table attached to this Law . The corporate income from the parties responsible lla annual compilation of the financial statements with the account of profits and losses of Articles 20 units of account, and 26 - except for the persons indicated in the last paragraph of Article 2 - applies the proportion rate of 24%. When forming the overall income of individuals contributes the business income to be subject to the proportional rate, the progressive tax that affects other income is applied with the appropriate rate to the brackets in which the latter falling incomes after they are added to that enterprise. TITLE II INCOME FROM CAPITAL Art. 13 (equity income) are considered investment income from capital derivat those data to mortgage or otherwise employed so that any resultant defined income. They are equally capital income: a) the interests of any kind, other than compensation; b) perpetual annuities and perpetual annual performance; c) dividends and other amounts arising from investments in companies, institutions, associations or other organizations as well as the interests and the benefits in kind of bonds and of any different note receivable from actions. Interest on capital to mortgage data can not be lower than the legal rate and if that is the extent indicated, are presumed to current market rate. Shareholders' loans to companies to which they participate in any event deemed bear interest equal to the statutory rate. The allocation of investment income to the overall tax base takes place in the tax year in which they were received; such income constitutes income components referred to in Article 21 when they have been achieved in the activities referred to in Article 20. TITLE III INCOME OF LAND Art. 14 (land Income) The land income is derived from posses or land unsuitable for agricultural production and consists of the cadastral income and agricultural income as will be redefined with an appropriate norm.
When the land is leased agricultural income profits tenant against whom contributes to the entire income to the extent of 60%. If the country estate is uncultivated, even in part, for a full annuity, limited to such annuity shall be reduced by 40% cadastral income and is excluded from the scope agricultural income tax. The land income, its components are taken to comprehensive income to the extent resulting from the Land Registry. Art. 15 (agricultural activities) are included in the income of the land even those income from handling, processing and sale of fund products, provided within the ordinary agricultural activity even if held in a partnership and have to ogg tt prevalent the fund products. Livestock farming and animals destined directly or indirectly to human nutrition is likewise regarded as falling in farming if the products for feeding livestock are mainly provided by the fund. They are also considered agricultural activities pastoralism, apiculture, floriculture, the nursery. TITLE IV INCOME OF BUILDINGS Art. 16 (Income of buildings) The income from buildings intended for residential use, for the duration of possession and to the extent resulting from the Land Registry, contributes in any case to the entire income of the owner or owners for corresponding parts. When the real estate unit intended for residential purposes is rented, the net income on invested capital is equal to 3/4 of the rental value, not included in the latter amount which lessees shall reimburse the owner for heating costs , lighting, drinking water and the like. With the deduction of one quarter of the rental value refers to offset the costs of repair, routine maintenance and repairs, as well as any other expenses or any loss that the owner has to bear. If the building is not yet piled income is determined by analogy with similar buildings and comparatively from the tax period in which it has become adapted to be used where it is intended. We do not consider production of the fabbricat income solely intended exercise of worship and those in cemeteries. Art. 17 (Buildings used in business activities) The income from buildings to the operation of economic activities is given by the rent received by the landlord declined by a quarter. The reduction in the rental value provided for in the preceding paragraph have the effects set out in Article 16. If the economic activity is carried out directly by the owner the income referred to in the preceding paragraph are taken to income of undertaking within the meaning of the provisions of Title VI; notwithstanding the foregoing, if the owner is a person fi ica the said income does not form the overall business income but without prejudice to the application of the provisions of Title VI as concern the deductibility of inere costs you to generate income d 'company. The property income is not used by holders that are directly related to the exercise of business activity still contributes to determining the total income in accordance with Title mentioned in that paragraph prcede. In all other cases the income of qualsi is manufactured nature contributes to determining the total income according to the land registry. If the building is not yet piled income is determined by analogy with similar buildings and comparatively, since the tax period in which it has become adapted to be used where it is intended. TITLE V INCOME WORKING Art. 18 (Income from employment) The employment income consists of all compensation and salaries received during the calendar year in cash or in kind for the provision of employment with and under the the direction of others, even in the form of participation in profits or subsidies or donations. Gross income referred to in the previous paragraph as a result of the structure of the general tax rates of the table and following and completing the provisions of subparagraph c) of the first paragraph of Article 6 and in paragraph 9 of Article VIII combine to form the tax base to the extent of 80%. also pools of employment income or are assimilated to such income: a) pensions; b) annuities established for consideration; c) the arrears fees related to prior years and allowances referred to in point b) of Article 7 where taxation takes place in accordance with Article 8;
d) bonuses or similar compensation paid to members of the Great and General Council or the Congress of State and other citizens for esp etamento of elective public functions and offices; e) any other periodical check, however named, whose production does not compete neither capital nor labor; f) the remuneration of the members of cooperatives of production and work, regularly recorded, resulting from the allocation of profits or production bonuses or budget, to the maximum of 20% exceeded the limit established by collective bargaining agreements in force; g) the rebates in favor of members of consumer cooperatives organized among consumers. Allowances for travel abroad contribute af rmare income for the part exceeding the maximum daily allowance for travel expenses recognized to state employees. The other amounts paid for services provided based abroad contribute to income in the extent of 75% of their amount. Not constitute cone income repayment of duly documented expenses and clearly identifiable. To income referred to in paragraph 3 do not apply the tax deductions provided for production costs of compensation of employees nor the deduction for flat rate deductible expenses, except, with respect to the latter charges for income mentioned under letter a) of that subsection. The income referred to the activities of the letter d) a component of the total income to the extent of 70% of their amount. Art. 19 (self-employment income) The self-employment income is the difference between all the fees received during the calendar year, or by the professional during the conduct of its business and the costs inherent in this exercise as long as documented and actually incurred in the same year. the expenses are deductible for the purchase of those benstrumentali to the exercise of the profession or who have a lower unit cost L. 500,000. For other operating assets, except for real estate, they shall be allowed as deduction annual fees to be amortized gradually to the extent established in a table prepared by the Secretariat of State for Finance and approved by Decree Reggenziale. also pools of self-employment income; a) the remuneration received, in whatever form or denomination, by directors, auditors or accountants or as a result of coordinated and continuous collaboration relationships; such income would form the tax base to the extent of 75%; b) income derived from the use of economic trademarks, intellectual property, to copyright, industrial inventions and the like as long as they are not achieved in the enterprise; such income would form the tax base to the extent of 75%. Such flat-rate reduction of taxable income does not compete for revenues arising from the use of economic rights acquired by inheritance or donation. TITLE VI CORPORATE INCOME Art. 20 (business income) and 'business income that resulting from the exercise of commercial activities, production of goods or services, intermediary, transport, banking, insurance and all other ancillary activities of the preceding. The activities referred to in Article 15, carried out beyond the limits laid down therein and having the character of the activity in the preceding paragraph, are considered as business income-producing. It 'also considered business income that follows from the conduct of craft activities, agency, small business and, in general, any other direct economic activities to the production and exchange of goods and services excluding income they derive from agricultural as not falling in the second paragraph. The incomes of the companies and of entities obliged to annual compilation of the budget are anyway classified and determined on the basis of the provisions contained in Title VI. Art. 21 (Determination of income) The business income consists of the net profits made during the tax period, resulting from the difference between the amount of revenue still achieved as long as related to the production of business income and the amount of costs inherent incurred in business, required by the tax Act, amended by the changes arising from the criteria established by the tax legislation. A component of the income contingent assets, the value of the company's products for personal or family consumption of the proprietor or assigned to shareholders, or for purposes unrelated to the company, as well as the capital gains of the assets relating tThe other those whose trade or production of which is direct the company's activities during the tax period in which they are made, or
the one in which are recorded only for the company or associated persons. They contribute, also, to income in the difference between the fair market value of goods and services, and considerations for the sales and pr stations made to companies that do not have in the State's registered office nor the main object of its activity . Capital gains realized during the year of enterprise are not a component of the business income to the extent that they are set aside in a specific reserve in liabilities and reinvested in depreciable assets within the second tax year following the year of realization. If the reinvestment does not happen or does not happen for the entire sum set aside, the amount is not reinvested in taxable business income of the second tax year following the year of realization; but if the reinvestment is made within the prescribed period, the reinvested amount is transferred to accumulated depreciation. The loss of a particular tax period based on the Title VI regulations can be brought, for half, a decrease in taxable income of the following tax period p by limited companies, cooperatives and consortia companies. The allocation of revenues and costs takes place in the tax period in which they are certain as to the existence and objectively determinable in amount. Art. 22 (Costs) In the determination of income are taken into account tutt costs related to the acquisition of goods or services, loss, contingent liabilities as well as of capital losses in the year in which they are made or, with subjective limit established Article 21 for capital gains, in the year are recognized when they are derived from the evaluations provided for in Article 24. the losses related to assets qualifying for tax esenzio and shall not be counted as a deduction. Any other costs and expense is deductible if it was ostenuto in the performance and provided that it is inherent to the achievement of revenue or income that go to make the business income. The costs directly attributable to assets other than those that originate revenue or income immediately related to business income, with the exception provided for in the third paragraph of Article 23, are not deductible and are taken to increase the cost of the assets. Not constitute deductible expenses, income taxes levied anyway. No deductible remuneration paid for the work done by the entrepreneur and family members referred to in Article 9, except that these are not regularly recorded among employees at all legal effects. Art. 23 (Interest expense) Interest expenses are deductible only if paid to persons resident in the territory of the Republic or to companies and banks; They are always deductible, regardless of the residence of the recipient, the interest expense u bonds. Interest expense paid to customers by ziende and lenders are always deductible. Interest expense related to assets other than those constituents Goods the production or exchange of which is direct the activities of the undertaking on the 4th paragraph of Article 22, up to the moment when it is started or can be started the 'use, are deductible on and being taken to increase the cost of the assets. Art. 24 (Measurement of inventories) Inventories of raw materials, auxiliary materials, and semi-finished goods are to be valued according to the provisions of this Article. Inventories should be valued separately pr homogeneous categories of goods of the same kind, type and quality. In the accounts should be brought to an excerpt from the book inventory is causing the situation resulting in inventory at the end of the tax period, with the indication of quantities grouped by nature and the relative unit value. In the first tax period any inventories of goods referred to in the first paragraph shall be evaluated based on the result of the division of the total cost of goods purchased, produced or processed in the tax period for their quantity. The total cost is the purchase price of the assets net of discounts and allowances, and other costs directly attributable to them, excluding interest expenses and overheads. The value of the goods must be deemed to include, in addition to what is stated in the preceding paragraph, the costs actually incurred for the transformation excluding overheads and marketing. The products work in progress are valued based on costs incurred and directly attributable to additional charges in the tax period. The evaluation of the works and services during the execution takes place on the basis of a portion of the
agreed fees net of those settled definitively. In subsequent tax years, in the presence of a decrease in inventories, based on the historical reconstruction of the amounts for years of training and the values ​​that have formed the uniform categories of assets to be valued, they are presumed to be hesitated or used the increases that have formats in the most 'recent tax year. If you reg stra an increase in the quantity or the remainder of new homogeneous categories of goods, the aforementioned increases or new inventories that were formed is attributed to the average unit costs with the procedure laid down by the fourth paragraph of this article. If the unit value of goods determined by the procedure described above is greater than the average market rate in the last quarter of the tax priodo, assessing the amount of inventories can be done for everyone, regardless of the period of training, based on this lesser value. The Secretariat of State for Finance, on par conforming kings Tax Office, may authorize, at the request of the taxpayer, assessment systems of different inventories from those projected. The valuation of inventories of titles from which originate the proceeds referred to in the first paragraph of Article 21 is as follows: in the first tax period in which it forms a balance of equity or debt securities, these securities, broken down by homogeneous categories, are valued using the average unit cost, obtained Sharin or the total cost of purchase, plus any directly attributable expenses, excluding expenses and overheads INTERESTS, to the quantities purchased; by increases in inventories of bonds formed in the years following the procedure at the first paragraph applying the unit cost of purchase of the year and gives rise to distinct groups for year of production; in the case of decrease in the formats they are presumed to be hesitated increases in previous tax periods from more 'recently. Detecting the equity decreases of publicly traded securities is made on the basis of the average compensation rates recorded in the last quarter of the fiscal year; for other securities it is made on the basis of appropriate documentation. Inventories of a tax period, also determined automatically in accordance with this Article, are opening stocks for the next tax period. Art. 25 (Depreciation, amortization and provisions) All tangible and intangible capital assets for own activities as well as the long-term use costs can be amortized on the basis of factors and criteria prepared by the Secretariat of State for Finance, adopted by Regency Decree on which also contains information, the criteria and the extent of the deductible provisions. The measure also has the methods of depreciation accelerated and accelerated. The depreciation coefficient is applied to the value of depreciable assets constituted by their cost plus any directly attributable expenses, including interest expense with the criteria set out in Article 23. Costs of maintenance, repair and transformation are deductible in the period d ' imposed on the basis of the criteria and content mode in Reggenziale Decree referred to in the first paragraph and prepared by the Secretariat of State for Finance, which can also include special criteria and procedures for specific sectors of economic activities. Art. 26 (Building more) Businesses whose income is defined by the provisions of Article 20, and which are not already required to prepare financial statements, when in the course of the reference to Article 34, have achieved revenues of 'amount more than 700.00 pounds. 0, with effect from the following tax period are obliged to fill in the bal or the account of profits and losses. Notwithstanding the preceding paragraph, the amount of onseguiti revenues in the tax period for craft production companies is determined on the basis of L. 80,000,000 for each employee with the greatest limitation of L. 1,000,000,000 and without prejudice , in each case, the expected revenue in the preceding paragraph when the device determines a volume of revenue lower than expected from the mentioned paragraph. The amount of revenue provided in the preceding paragraphs may be varied by Regency Decree on the proposal of the State Congress. The Secretariat of State for Finance provides firms with the criteria to be followed in determining the amount of revenues under the first paragraph. Undertakings governed by this article shall extend, as regards the compilation of the budget, the rules contained in Law 21 December 1942 n. 45, as amended. TITLE VII OTHER INCOME Art. 27
(Other Income) The total income, other income contributes nonetheless achieved, other than those already expressly provided for by the provisions of this Act, as well as the capital gains not included in business income undertaken for speculation. The capital gain is the difference between the actual price received and the actual purchase price, plus any other costs. For capital gains related to real estate, it is held for currency depreciation, to the extent established annually by Regency Decree on the advice of the Investigation Commission. The taxable amount of the gain is reduced by 30% in case of sale of properties leased civil dwelling on an ongoing basis in the previous three years; the reduction amount to 50% in the event that the buyer is the lessee of the previous three years. Lack of order speculative and therefore do not constitute taxable income, the capital gains realized on the buying and selling real estate goods for personal use by the purchaser or the family members, provided that the period of time elapsed between the ' buying and selling is not less than 5 years tITLE VIII dECLARATION Art. 28 (Subjects obliged to submit the declaration) Anyone who owns income is obliged to declare them nnualmente according to the rules of this title, even if they do not entail any debt tax. The entities referred to in Articles 19 and 20 must submit the declaration even if they do not produce any income. The declaration of individuals is unique to ir dditi owned by the taxpayer and those of other subjects to him charged under Article 5 of this Act. If the spouses have opted for the application of their right granted by Article 5 declaration it is unique. The incomes of their minor children are declared and signed by their legal representatives. In the event that the taxpayer boast a tax credit, the statement is equivalent to the application for reimbursement. They are also obliged to submit the tax return of non-residents when they have earned income produced in the State, or regarded as such who have not complied with the tax withholding. Art. 29 (Exemptions from statement) are not required to submit the declaration: 1) persons who, not being in any case obliged to statement of income, own only exempt income, income subject to withholding as tax and land tax of no more than minimum free; 2) the employee owners, who do not have other income other than those referred to in paragraph 1 above, except for the cadastral income deriving from their residential properties directly used, provided ch in the deadline for the declaration to present 'Tax Office the certificate issued by the employer, drawn up in accordance with the relevant model to be approved by Reggenziale Decree. If you foreshadow the possibility of exception provided above, the taxpayer is entitled to declare to their employer, with printed and how that will be defined by the Secretariat of State for Finance and adopted by Reggenziale Decree, the cadastral income of available to order for the employer to take it into account in the general tax adjustment; 3) persons who receive only pension income provided by public authorities of San Marino; such persons are exempt from the obligation to present there alternative cates to the declaration. The exemption does not compete in the event that form the total income of the taxpayer combine the income from employment or similar other subjects to him charged under Article 5. Art. 30 (Content of the declaration) The declaration, under penalty nullity, must be completed in the models prepared by the Secretariat of State for Finance and adopted by Reggenzial Decree and, again under penalty of nullity, must be signed by the taxpayer or by whoever is the legal representative or contractually, or by both spouses in If joint statement. It must contain the indication of each active and passive element necessary for the determination of the king taxable income under regulations established by this Law. The declaration must include the identity, address, marital status and, when it is held, the number of ISS card taxpayer natural person and other subjects which are up deductions or deductions under Articles 6:09 or whose incomes are charged to the taxpayer in accordance with Article 5. The taxpayer physical person generating income
business is also required to indicate the name given to the Company and, if it exists, the place where keeps accounting records, as well as the reference number assigned to it from the population of traders. The declaration should also contain such other information as to the availability, through ownership or precarious title, by the taxpayer and the persons referred to in the previous paragraph, touring aircraft, recreational boats, motor vehicles, second homes permanently or partially available also outside the territory of the State. If the taxpayer is a company or organization assimilated must state on the declaration, in addition to the provisions in the first and second paragraphs, even the d nomination or business name, particulars of the legal representative of the registered office or mministrativa, the address, the object of 'active à and the place in which it is exercised as well as the place where the accounts are held. The companies and organizations that do not have a registered office or administrative authority in the State must indicate the address of the establishment or, failing that, the identity and address of their representative. Art. 31 (Attachments to the declaration) The taxpayer must attach to the declaration the attestation of the tax paid to the State Treasury executed en ro the deadline for submission of the declaration. Individuals who received sums subject to withholding payment, or have such sums, the certificate must accompany the declaration of the withholding agent, prepared in accordance with forms prepared by the Secretariat of State for Finance and approved by Regency Decree stating the reason of the funds paid, their amount and the withholding carried out, giving every other element of which has been taken account of in the withholding. The taxpayer must also attach, under penalty of rejection of the deduction, appropriate documentation relating to deductible expenses referred to in Article 6 of this Act. Individual entrepreneurs, who meet the requirements of Article 26 of this Law, must be attached to the declaration a copy of the financial statements with the profit and loss duly signed. This provision does not apply to smaller enterprises admitted to keeping of simplified accounts, unless they have not opted for the ordinary regime. If the taxable persons have companies or assimilat entities, must enclose with the addition to the certified statement referred to in the first paragraph, the list of directors, the signed copy of the financial statements with the profit and loss account, together with the report administrator, the mayors and the minutes of the meeting which approved the financial statements, as well as certificates and certificates of Defined in the second paragraph, if necessary conditions are met. Foreign companies operating in the state are required to supplement the declaration with the financial statements with the profit and loss account on the activity carried out in the territory through a permanent establishment, as well as certificates and certificate mentioned in the second paragraph, when the necessary assumptions. Art. 32 (Deadline for submission of the declaration) The statement with its annexes must be submitted in duplicate to the Tax Office, which will issue a receipt. The proof of submission of dichiaraz one is made exclusively from the said office receipt. The Congress of State, by administrative order, may, at the request Tax, that the declaration is also submitted to another public purpose delegates offices. Natural persons shall file the return by April 30 of each year with respect to income earned in the previous year. Should the taxable persons are companies or entities ass milati, required to prepare the financial statements, shall file the return within three months of approval of the budget and, in the absence of such approval, within three months of the legal limit set for this termin fulfillment. This deadline is extended to undertakings referred to in Article 26. If the declaration is submitted within thirty days of the expiry of the deadline for submission, it is valid, but it applies to the taxpayer the penalty provided for in Article 63. The declaration submitted after that time is nothing, but is also entitled to collect from the State Treasury. In the case of the taxpayer's death, the term of submission of the tax return by the same possessed, expected in the fourth paragraph, shall be extended to 31 July. Art. 33 (Declaration of withholding)
The subjects that match the amounts subject to withholding tax must submit annually by April 30 or, in the case of companies or similar entities, with the submission of the annual return, the dichiaraz one of the sums subject to withholding tax in the previous year according the models prepared by the Secretariat of State for Finance and adopted by Reggenziale Decree. In this declaration the certifications proving the payment of ritenu must always be indicated. The obligation of the declaration referred to in this article does not extend to the state and public bodies which, however, the deadline set down in the first paragraph, are obliged, under the terms and procedures established by the Secretariat of State for Finance, to participate however, the withholding tax. TITLE IX ACCOUNTS Art. 34 (Obligation of accounting records kept for companies, institutions assimilated and major enterprises) The society, in the same class as well as individual entrepreneurs entities who have obtained in the reference amount of higher revenue planned art. 26, must keep the ledger, inventory book, the register of depreciable assets, duly signed and stamped, as well as auxiliary scriptures, indicating clearly the balance sheet and income items grouped into categories, required by the No ture and on the size ; They must also draw up the inventory and the balance sheet with the profit and loss. Those who adopt the accounting code or making use of meccanografici systems, electronics and the like for the processing of accounting data, must keep a register in which are the data that is indicated by the Secretariat of State for Finance. The year of reference cited in the article, refers to the entry into force of the law and to the second year exemption from the accounting records kept provided for in Article 35. Art. 35 (simplified system for minor enterprises) The subjects tax referred to in Article 20, Qualor the revenues achieved in the reference year have not exceeded the amount provided for in Article 26, they shall be exempted for the next two years from the bookkeeping required by Article 34, and are obliged to draw up the inventory register, that of the purchases and the sales, subject to conservation obligations of purchase invoices and export and other records and documentation required. Records must be duly signed and stamped. By the deadline for the annual declaration, such parties should indicate in the register of inventories the value of inventories. Such parties may opt for the tightness of all the accounting records referred to in the preceding article. The option requires the taxpayer for two years. The taxpayer may request to revoke the option, provided that the relevant request is made in writing sent to the Tax Office in the first quarter of the second year. Art. 36 (Entries in the accounts of artists and professionals) The artists and professionals must jot chronologically the sums received, in any form and denomination, in the exercise of their professional or artistic activity showing separately the amount of any withholding tax suffered, the name and address of the person who made the payment, made exception for professional services related to transactions that existing laws cover with anonymity and identification of the parcel or note. They must also record the expenses of which call for the deduction under Article 19. By the deadline for the submission of the declaration must finally note, grouped by nature and distinguished by year of acquisition, the assets for which they are requesting the deduction of depreciation, as well as the same shares. The records must be carried out on a special registo or separate registers duly authenticated. Art. 37 (Entries in the accounts of withholding) companies and other entities that perform withholding tax as tax or deposit, must write down chronologically records, with a duly signed and stamped, the amount of money paid to each perceiver, the particulars of the same and the amount of withholding. The generality of the percipient of interest payable with credit institutions are covered by bank secrecy and therefore credit institutions do not know required to write down the aforesaid general in the records referred to in the previous paragraph, without prejudice to the obligations of the accounting records. Art. 38 (Preservation of Documents)
All supporting evidence and documentation required by Title IX, as well as the supporting evidence and documentation provided by the other tax laws and those still relevant to the effects of inquiries, including in conflict with provisions that provide for more 'short terms, must be maintained for four years, excluding the tax year to which they relate, and in any case as long as they are not defined verification regarding the same tax year. TITLE X HELD AT SOURCE Art. 39 (Withholding) Persons performing the activities referred to in Articles 19 and 20, agricultural enterprises, the state and public ent, which correspond remuneration for work performance of employees of which Article 18 must operate at the time of payment of such compensation, a withholding of general tax advance on income with obbigo of revenge. Such withholding tax is proportionate to the estimated annual income in relation to the rates in force and taking into account the deductions referred to in Article 9, which must be declared by the employee on his own responsibility. The levying of withholding adjustment must take place within the month of February of the next tax period also based on the provisions of the first paragraph, item 2) of Article 29, if the employee exercises the powers accorded to it in the same paragraph. The subjects referred to in the first paragraph must operate on sums paid by way of severance employment relationship unaritenuta tax equal to that governed in Article 8. The State and the Institute for Social Security income that orrispondono referred to in subparagraph c) of Article 7 making the withholding tax at the rates provided for in paragraph V of Article 8. the deduction is proportionate to the deductions referred to in Article 9 that the taxpayer must declare under their own responsibility. The subjects mentioned in the first paragraph that match compensation in money or in kind and however called for self-employed work or assimilated must make a withholding tax at 10%. If the fees referred to in the previous paragraph are corresp sti to persons resident abroad, withholding must be made to the extent of 15% and is as tax; withholding tax, if the percipient are individuals resident abroad, is also operated on compensation for the termination of ratios available from employment provided for by the letter b) of Article 7. The parties referred to in the first paragraph that match fees of any description for agency performance, representation, similar trade, they should make a final withholding tax to the extent of 3% to be paid on the amount of compensation when the percipient residing abroad. Income tax pursuant to subparagraph d) the first paragraph of Article 7 the withholding is made in the manner and the measure established by article 8 The deductions referred to in paragraphs 4 and 5 of this Article shall also be made when the compensation or benefits are paid by the State, by other public companies or autonomous entities. On the benefits of luck or skill games, resident organizers must operate the withholding provided for in Article 8 with recourse. All persons obliged to make annual compilation of the financial statements with the account of profits and losses, corresponding interest expense deductible percipient other than banks or credit institutions, have to deduct tax, as a tax and duty to compensation of 13% on the same interests. Credit institutions, notwithstanding the preceding paragraph, perform the withholding tax with right of compensation. The withholding tax on interest paid to companies and similar entities - excluding subjects in the last paragraph of Article 2 - means operated as a down payment. Dividends paid by joint-stock companies are not subject to withholding tax; the general tax on financial income tax paid by the aforementioned companies is also to release the persons receiving the distributed profits. TITLE XI ASSESSMENT Art. 40 (competent bodies) The assessment of personal income oprato in accordance with the provisions of this Title and the imposition of any relevant administrative fines, take place at the hands of the Investigation Commission under the first paragraph of ' Article 41 on the basis of the provisions of this Act and on the initiative and the Tax Office's proposal. The income test and the imposition of sanctions for any bits of the persons obliged to annual compilation of the financial statements with the account of profits and losses, are to be entrusted with
the same criteria and procedures laid down in the first paragraph of the Commission of Investigation of the third paragraph of Article 41. Art. 41 (Commission checks) The Commission of Investigation in the first paragraph of Article 40 is composed of three members elected by the Great and General Council between competent dini city in tax matters, the Director of the tax that the presiding and two state officials appointed by the State Congress. The Commission shall appoint from among its members the Secretary. The Commission of Investigation of the incomes of the companies, similar organizations and companies more in the second paragraph of Article 40 is composed of the Director who chairs and the two state officials mentioned in the first paragraph. Commissions of Investigations hold office for 4 nni. The deliberate commission by a majority of those present. The members of the Commissions of Investigations for the performance of their duties are of the public official. The members of the commissions provided for in this article is about, except the Director of Taxation, may not be members of the Board of Estimate as per Article 49. The members of Commissions must refrain on pain of nu ity of the deliberations, if the investigations concern the members themselves or relatives or relatives up to the third civil degree. Art. 42 (Controls) The Tax Office collects data and news that apply to ensure exact verification of income, check the returns submitted by taxpayers and withholding agents, notes the omitted statements and those regarded as in effect and shall submit to the committee referred to in Article 41 proposals for investigations into grinding, and for office investigations. Verifies the regular keeping of accounting records and the fulfillment of other obligations under this Act and is required to send r pporto Judicial Authority when in the course of the audit finds violations ven criminally sanctioned. For the purposes of control and detection, the Director of Tax and Commissions of Investigation may: a) require public officials CPIA or an extract of documents and acts of which they are in possession; b) give notice to the taxpayer to show up in the office to provide documents, explanations, information and evidence; c) access to the premises where the business; d) convene in the office any person likely to provide information; e) ask the help of engineers for assessments that require special knowledge; f) inspect and verify the records, papers and documents still held by firms, by companies and similar bodies; g) require the production or amending the constituent securities of income. The heads of public offices, under their personal responsibility, felt the Tax Office, must ensure the smooth flow of data and useful information for the purpose of monitoring and detection of the statements of income. Art. 43 (Establishment of personal income) The Commission of Investigations, mentioned in the first paragraph of Article 40, performs assessments based on adjustments of the statements made when, following the check carried out by the Tax, the total income declared is less than the effective or do not exist or are not up to the income deductions and tax deductions laid down by the taxpayer. The untruthfulness of the declaration for inaccuracy, incompleteness and infidelity is ascertained through the control of the same statement, the comparison with the statements of previous years as well as on the basis of circumstantial evidence, precise and consistent. The Commission of Investigation may initiate synthetic ascertaining if the total income resulting from the determination analitic is lower than justifiably attributable to the taxpayer. In this case the income is established by induction with respect to elements and certain circumstances, the presumption set out in the preceding paragraph and also by turning to indirect facts expressive of ability such as the availability of the goods referred to in the third paragraph of Article 30 . the taxpayer has the right to prove that the more income that is attributed depends in whole or in part from exempt income or income subject to withholding tax title. The Commission of Investigation can also be given during the investigation Synthetic pursuant to article 46. Art. 44 (Establishment of corporation tax, similar institutions and major enterprises) The Commission of Investigation of the companies or similar entities income and more businesses
proceeds, in the ordinary way, in ascertaining correction of income on the basis of the accounting records provided by this law. In particular proceed to the adjustment of the declarations submitted: a) if there is no correspondence between the elements indicated in the declaration and those which result from accounting records; b) if the provisions previst by Title VI concerning the determination of business income have been applied; c) if the untruthfulness of the statement is in some way by the comparison of the elements mentioned in it with those acquired by the Office or by the Commission of Investigations using the controls required by law and, in any case, attr to the information acquired at the end of legg or exhibition by taxpayers of records, documents and records, or, even, through inspections and audits of the accounting records and other records or documents relating to the company or to any other taxpayer. The existence of undeclared activities and the non-existence of liabilities declared is inferred on the basis of circumstantial evidence, precise and consistent. The Commission may initiate the investigation of the synthetic business income on the basis of facts and evidence was gathered and in relation to the inductive content of the facts and circumstances unrelated to the financial statements and accounting records: a) if the declaration has not been indicated business income and are not attached to it the acts and documents required by this law; b) if it appears from the minutes of the Office Tax that the taxpayer has not kept and has subtracted inspection records of the Office; c) if omissions, incompleteness and false indications are so numerous, repeated and serious as to render unreliable as a whole accounting records. Art. 45 (Determination of the lower corporate income tax) The assessments based on adjustments of the income of the companies referred to in Article 35, as well as on the basis of the foregoing provisions, as applicable, may be synthetic route, taking into account the economic situation the company, the number of employed workers, the labor costs, the amount of general expenses, the amount of purchases made, the inventory findings and other telltale indicators of ability. Smaller companies that have opted for keeping the required accounting records, are subject to analytical assessment system provided by the preceding article. Art. 46 (Assessment Office) In the absence of declaration or in case of nullity of the same, the Committees of the investigation proceeding to the establishment of synthetically revenue office. In the cases provided in the preceding paragraph, the committee may make use of the data and information was gathered or come to their knowledge, also using presumptions lack of gravity response, accuracy and consistency normally required. Where there are the cases covered by this Article, the Commissions have also the right, where appropriate, regardless of, in whole or in part, of the accounting records of the taxpayer, even though they are regularly held. Art. 47 (Timing of the notification of the assessment) The act ex officio assessment or adjustment shall be notified, under penalty of forfeiture, by 31 December of the 3rd year following the year in which it was presented or it had to be submitted and which the assessment relates. In case of non-declaration or invalidity of the same act of assessment must be notified by 31 December of the fourth year following the year in which the return should have been filed. The notifications will be made to the Tax Office's care. Art. 48 (Actions against the assessment notice) An appeal against the notice of assessment, taxpayers and the Tax Office may be appealed to the Board of Estimate, within a maximum period of 30 days from the day on which the products of notice of appeal the subject. The action brought by the taxpayer is submitted to the Tax Office, which shall consider and, if deemed founded for reasons related to material errors, duplication in total or partly or non-existence of the obligation to tax, withdraw or amend the ' act of notifying assessment, where appropriate, on a provisional basis, the taxpayer a new notice of assessment and informing the Commission of investigation of the ratification. Deemed non founded for the stated reasons, the Office puts the appeal to the Board of Estimate. About the process before the Board of Estimate is pplicano, until the entry into force of a new regulation of the tax dispute, the rules governing the procedure
litigation at the Tax Commission suppressed. The Board of Estimate always has power to amend increasing the findings made by the Committees referred to in Article 40, with the same criteria and procedures observed by the aforementioned Committees for Office investigations. Against the decision of the Board of Estimate, within a period of 60 days after notification of that decision to the Office by the Tax, the Tax Office and the taxpayers may use the ordinary courts to cases of infringement or misapplication of the law, for incompetence or abuse of power. The judicial authorities, pending the definite regulation referred to in paragraph 3, may not be referred to if you did not previously experienced an appeal before the Board of Estimate. Art. 49 (Estimation) The Executive Board of Estimate is composed of three members elected by the Great and General Council between the relevant citizens in tax matters, including at least one employee of the Public Administration and, in accordance with the device contained in the third paragraph of 'Article 48, by the Director of Tax, which has an advisory vote, and acts as Secretary. The President is elected by the members in their breasts the Board of Estimate, except the Director of Taxation. The members of the Board of Estimate except the Director of Taxation, may not be members of the Commissions of Investigations. The Board of Estimate of office lasts four years. The members of the Board of Estimate, for the performance of their functions, are of the public official. The members of the Board of Estimate should refrain on pain of nullity of the resolutions, where the investigation relates to the members themselves or relatives or relatives up to the third civil degree. TITLE XII COLLECTION Art. 50 (Collection of taxes due on the declaration) The general income tax payable according to the declaration, it must be paid to the State Treasury which issues a receipt in duplicate, one of which must be attached to the declaration. An administrative measure, the Congress of State may provide that the payment also occurs via other delegates from the branches of the State Treasury. If the payment is not made within the period set forth above, the amounts not paid, or paid to a lesser extent, or paid after the deadline, it pply the interest equal to that applied to the State for cash advances increased by two points, with effect from the day following the expiration until the date of payment or, if the collection takes place through role until the closing date provided for in Article 55. the charge in interest expense combined conle other financial penalties. Art. 51 (Collection of withholding taxes) Withholding carried out under Article 39 are collected by direct payment to the State Treasury. These payments must be completed within the two months following that in which implemented the withholding tax. The withholding tax on interest of credit institutions shall be paid as follows: a deposit of 50%, commensurate with the interest expense attributable to the period before tax shall be paid by July 31 of each year and the adjustment, on declaration of those organizations? and it shall be paid in the first two months of the year following that in which the interest expense is accrued. Such declaration, which contains the only indication of the total amount of interest accumulated in the previous tax year, replaces in every respect that of Article 33. If the direct payment is not made within that period, the amounts are not paid applies the interest equal to that applied to the state for cash advances increased by two points, with effect from the day following the expiration fi or the date of payment or if the collection takes place through role until the closing day provided for in Article 55. Art. 52 (Collection by roles) are collected by the tax roles for which has not been made a direct payment to the Treasury, as well as the amounts due for interest, fines and penalties. The role filled by the Tax and is signed by the Director of the Office itself or by his representative. The role contains the names of contributors and, for each of them, the identity and residence of the tax period, the taxable amount, the amount of relative mposta, the amount of payments made during the self-taxation, the ' amount of the withholding tax, the tax due and that the interests of the surcharges and fines. Taxes or additional taxes due on the taxable income established by the Commissions of
Investigations and the Board of Estimate must be ic itte roles, subject to revocation, no later than December 31 of the year following the year in which the assessment becomes final. The roles are as implemented by the Commission for Budget and published for 30 days "to valvas palatii" and at the Township Councils by the State Treasury, which give notice to taxpayers by posting appropriate poster. The aforementioned publication replaces individual notification and makes the debtor legally obliged to pay the tax. Art. 53 (Types of roles) The roles are divided into main and supplementary. In the leading roles enroll the taxes not paid to the State Treasury. In supplementary roles enroll surcharges, fines and penalties, interest and other amounts owed by the taxpayer. Art. 54 (Registration provisional roles) If the taxpayer has appealed against the decision of the Board of Estimate, which confirmed the findings of the Commissions referred to in Article 40 or against as the findings made by the Government itself, the corresponding taxes to taxable confirmed or established are entered on the list, provisionally, for 2/3 of the tax corresponding to the taxable amounts. Art. 55 (payment of taxes) The amount of taxes, surcharges, fines and interest expense recognized in the role must be paid within 90 days from the last day of publication of roles. After that date, unless the taxpayer has made the payment, apply on amounts not paid a late fee equal to the interest rate applied to the state for cash advances plus two finoalla collection points in the manner established by Article 60 . Art. 56 (Training of roles) the roles, under the second paragraph of Article 52, can be formed without fixed deadlines. When the Tax Office, has reasonable grounds dritenere the taxpayer to escape by any means to pay the tax, after hearing the body that has established an income, you can fill a special role at any time, to be levied within 30 days individual notification, that is made to the taxpayer by the State Treasury, after the enforceability of the role of the Commission for the Budget. Art. 57 (Interest on the role of tax registration established by the Commissions) On taxes charged to income not declared or declared partially due to adjustments based or ex officio assessment applies, paid by the taxpayer, interest equal to that paid by the State for cash advances, plus two percentage points from the date by which revenues had to be declared until the day of expiry of the period provided for in Article 55. payment Art. 58 (Solidarity with the withholding agent) when the withholding agent is registered as tax and financial penalties related to income on which did not carry neither withholding nor its payments, the replacement shall be jointly liable jointly and severally. Art. 59 (Repayments) Who performed, due to the provisions of Article 54, a payment not due by way of income tax, entitled to recover from the State what he paid. On the same sums also entitled to interest in the amount indicated in the fourth paragraph of Article 51 until the date the claim is accepted. The recovery of sums paid by deduction at source is allowed in favor of the substitute for the excess of the tax payable by him for the eriod tax and may be claimed by the withholding only within the limits of the amounts paid in excess to withheld. For amounts subject to withholding tax as a tax refund you can be requested only by the withholding agent. The request for reimbursement must be submitted to the Tax Office and, as regards the sums paid as an advance by deduction, it can also be proposed in the annual tax for the tax period for which the tax payment was made . The Office shall in relation to the application for refund within six months from the date of application. After that period without the Tax Office has sent the taxpayer a notice on acceptance or otherwise of the redemption request or if the Office decides otherwise, the taxpayer may appeal within 60 days from the expiry of the aforesaid term or the notice of the negative decision, the Board of Estimate. During the same period the taxpayer may appeal to the court against the negative decision of the Board of Estimate.
The execution of the payments under this Article shall not prejudice the investigations referred to in Article 47. Art. 60 (Collection enforcement) For the amounts entered in the State Treasury does not pay the debtor a notification of formal notice to pay within 30 days. After that deadline, the State Treasury shall levy availing of hand directing procedure and lien on all assets of the taxpayer. Warnings concerning the untraceable taxpayers are published "to valvas palatii" and that publication is equivalent to notification. Art. 61 (Appeal against the roles) for material errors and duplications occurred in the compilation of the roles are open to appeal to the Tax Office within 60 days from the last day of the publication of the roles themselves. The provisions of the second paragraph of Article 48 with regard to how the action was brought and the exercise of power to convene or modification Tax Office. If the taxpayer has paid the sums listed in the role against which recurs, the Tax Office, if it considers the appeal well founded for the reasons set out above, can proceed directly to the termination of the relevant refund. The correction of clerical errors and duplications directly detected, the Tax Office also provides no intervention of the taxpayer. The deadline set down in the first paragraph the taxpayer may file an appeal to the Board of Estimate role against the format to become final assessment period following a failure to appeal for failure or irregular notification of assessment. Against the negative decision of the Board of Estimate or against the application to its assessment of the Board of Estimate become definitive for failure or irregular notification of the act, the taxpayer, within 60 days of notification of the negative decision or the expiration date of the publication the role, can resort to judicial authorities. The Board of Estimate and the judge may suspend iscossione with a reasoned decision communicated to the State Treasury, the Tax Office and the taxpayer. Art. 62 (Breakdown) Pursuant to and by effect of article 82, the sums received by way of a general income tax as a result of the declaration as a result of withholding or through roles as well as the sums received by way interest, surcharges or penalties, are for the 50% (fifty percent) of the Institute pertaining to Social Security. The State Treasury, within 30 days, collected from it, has to transmit to the Institute for Social Security the proportion referred to in the preceding paragraph. Changes in general income tax rates caused by the intention to change the volume of the tax revenue of competence or the public exchequer or the Institute for Social Security for the provision of health services or what ever the Institute for Social Security for the financing of pensions s cial, involve corresponding and proportional changes in the breakdown provided in the first paragraph. The change in the distribution referred to in the preceding paragraphs is done with Regency Decree on the proposal of the State Congress. The tax revenue of the Institute for Social Security competence is shared between the pearls health care revenues and income for the financing of social pensions in proportion to the corresponding receipts acquired in 1984. TITLE XIII ADMINISTRATIVE SANCTIONS Art. 63 (omissions, incompleteness and infidelity the statement) in the case of failure to submit the declaration referred to in Article 28, is subject to a monetary penalty from 1/4 to twice the amount of tax due and in any case not less than L. 50,000. If it is not tax due, the monetary penalty applies insofar as L. 50,000 to L. 100,000 and can be reduced up to L. 20,000 to employees employed under subparagraph. 2 of Article 29, which have not submitted the certificate concerned. Who fails to submit a tax return when tax on income ascertained is greater than $ 35,000,000, it shall be punished by a fine of 2 to 4 times the amount of tax due. It is not considered omitted the statement submitted without subscription and then taken out on a Tax Office invitation. If the balance in the statement are not included one or more 'productive income assets, it is subject to a monetary penalty to be 1/4 to two times the amount of taxes and additional taxes due in relation to the income from non-listed assets. If the asset or income productive assets that have been omitted by the declaration
the tax payable is greater than $ 35,000,000, the monetary penalty is applied by two to four times. If the omissions provided for in the preceding paragraphs are also related to income earned abroad, the pecuniary penalty is increased by 1/4. If, apart from the cases referred to in paragraph 4 is shown in a statement net income lower than that, it applies the monetary penalty from 1/4 to twice the amount of the increased tax due. The penalty is increased by 1/4 if the difference between the established and the declared income also covers the income received abroad and is reduced by half if the additional tax is less than 1/4 of that ascertained. If the declaration is submitted with a delay of no more than 30 days, apply the penalties referred to in the first paragraph reduced to 1/4. The failure to submit the declaration shall, in any case, the application of the penalty stipulated in Article 67. It is not considered omitted the statement submitted with a delay not exceeding 180 days from the due dates laid down in Article 32 when the taxpayer proof that the breach of the aforementioned deadlines is attributable due to force majeure, or when the declaration is made in the 90 days following the moment in which it is proved the cessation of force majeure. If, within 360 days from the deadline provided for in Article 32 datei the taxpayer declares one or more 'fixed assets of which he had omitted the indication in the statement of income, which are not already detected by the Tax, in respect of those assets do not proceed to the application of sanctions ADMIN there and on increased tax that is paid on the new tax base the taxpayer is required to pay the interest expense at the current market rate plus 1/2 of the date on which the assets had to be reported the date of their statement Tax Office according to the rules contained in title VIII, as applicable. It does not give rise to the application of administrative penalties even in cases where the taxpayer has incurred material errors or omissions in the declaration and infidelity in the absence of fraud and provided that presents serious reasons. In such cases, the taxpayer must complete a new income statement with tax authorities the right to demand the payment of interest on the additional tax to which the taxpayer is liable, calculated at the current market rate and increased by 1/4 from the day of deadline referred to in Article 32 the day of the regularization of the tax return. The occurrence of the circumstances envisaged in paragraph 11:02 of assessment does not preclude the action regulated in Title XI. Art. 64 (Omitted, unfaithful and incomplete statement of Deputy tuti tax) In case of failure to submit the prescribed declaration under Article 33 is subject to a monetary penalty to be one to two times the total amount of the withholding tax on the undeclared sums . If the total amount of declared amounts is lower than that finally determined, the applicable penalties from one to two times the difference. If the statement is omitted the indication of the percipient, also it applies foreach name omitted the monetary penalty from Lire 20,000 to L. 50,000. If the declaration is submitted with a delay of no more than 30 days, the penalty specified in the first paragraph reduced to 1/4. It extends to withholding the device referred to in paragraph no. 10 Article 63. Art. 65 (Breach of the obligations relating to the content of the statements edagli attachments) If the statements referred to in Articles 28 and 33 do not contain all the expected data, should apply where not satisfy the assumptions of failure, incomplete or faithless statement, the monetary penalty from Lire 20,000 to L. 100,000. In case of lack or incompleteness of the annexes referred to in Article 31 it is subject to a monetary penalty by L. 30,000 to L. 150,000. Art. 66 (Breach of the obligations relating to accounts) If the records are not kept in accordance with the provisions contained in the law, is subject to a monetary penalty by L. L. 100,000 to 600,000. Who does not retain all or part of the documents ind ed in Article 38 and who, though requested, it wastes the performance or prevents the inspection or declares that it does not possess them is subject to double the penalties mentioned above. The penalty provided for in the preceding paragraphs is reduced to 1/4 of the minimum if the irregularities of the accounting records or missing documents are of little relevance. Art. 67 (delay and failure to pay the tax)
Who does not perform within the prescribed deadline the payment provided for in Article 50 and executes a lesser extent, it is subject to the surcharge of 15% of the unpaid sums. The surcharge is reduced to 5% if the contribution is made within 5 days after the date of maturity and is without prejudice to the interest payment specified in Article 50. Art. 68 (Omitted payment of withholding taxes) If you do not run into all or part of the payments of withholding tax provided for in Article 39 and other tax laws are subject to the surcharge of 20% of the unpaid sums. The surcharge is reduced to 10% if it is paid within 15 days, subject to the payment of interest referred to in Article 51. Art. 69 (Breach of the withholding tax) Those who do not work in whole or in part withholding allafonte is punished with the surcharge at 15% of the amount not withheld, subject to the application of penalties laid down in Article 68 also for the non-payment. Art. 70 (Delinquencies in the payment of taxes levied by roles) for non-payment of taxes entered in the register, when its amount is greater than L. 500,000, are subject to a monetary penalty by L. 30,000 to L. 150,000, prejudice 'interest for late payment. The failure to pay the State Treasury shall notify the Commission for the investigation within 30 days of the closing date useful for the payment. It is not made in the application of the monetary penalty if the taxpayer proves that the failure to pay was due to force majeure. Art. 71 (Other violations) are punished with a pecuniary penalty from L. 50,000 to L. 300,000: a) the failure to respond to the notices, requests and requests made pursuant to subparagraphs a) b) and Article 42, unless Article 66; b) any other violation of obligations established by this Act and any other rules relating to income taxes. Art. 72 (Accompanying sanctions) The application of the monetary penalty amounts to sup than to L. 30,000,000 matter: - the ban for five years by the Office of componeti of the Board of Estimate and assessment Commission; - Suspend the exercise of functions of representation and assistance in tax matters for a period of not less than four and not superior to 12; - The inability to enter into contracts with public administrations or supply for a period not less than one year and not more than at nni. Art. 73 (Determination of a fine) In determining the extent of the financial penalty must take account of the seriousness of the violations being taken of the harmful consequences, say tte or reflected, for the state. The monetary penalty may be increased up to the middle against those in the previous three years has suffered the application of sanctions, both administrative and criminal, for one or more 'violations of the same provision of law. The monetary penalty is reduced by up to half, if the violation is of special tenuous. Art. 74 (Finding violations) Violations of the rules contained in this Act and other laws on taxes, direct, does not constitute a crime, there is a finding of verbal process by bodies responsible for verification. These, their task was completed, send the minutes to the Boards of Investigation, permitting them to the imposition of sanctions. Against the measure may be submitted to the Board of Estimate within 60 days of notification of the contested measure. The same term can be completed appeal against the decision of the Board of Estimate judicial authority in the forms of civil process. For violations that result in adjustments to assessments or office, the payment of penalties shall be notified to the taxpayer together with the investigation; Appeals shall be subject to Article 48. The fines and surcharges are entered in supplementary roles by December 31 of the year following the year in which the settlement became final. If you appeal, the decision shall be deemed final after 60 giorn of notification of the last decision not challenged or the decision giudiziar to appeal. And 'allowed the offender to pay to the State Treasury, within 30 days from the date of notification of the imposition, an amount equal to 1/4 of the maximum financial penalty, plus the amount of the tax. The organs of the tax dispute may declare due the sanctions when the violation is justified by objective standards ncertezza about the extent and the scope of the provisions to which it relates. Art. 75
(Piu 'violations of the same provision) The penalty is applied for each violation even if the same provision of law. That the violation of the same provision is repeated only for uniformity of behavior, the sanction, taking into account the circumstances of fact, one time can be applied. It is determined to the extent that it should re ss imposed for the most 'serious violation increased from 1/4 to twice. Art. 76 (The persons responsible for the fine) The monetary penalty is payable by the person liable, in person or by the post, to the observance of the violated norm, as well as the negotiating representative. The monetary penalty is due also to those who have contributed in violation of tax law. When the violation is committed, even for the competition, from a minor does not have to personally observe the obligation breached, answers the monetary penalty the person exercising parental authority or guardianship. When the levy is payable by a legal or institutions or organizations also do not have legal personality, the legal person also meet the monetary fine person, the Agency and the Organization. If more 'agents are required, for whatever reason, to pay the monetary penalty, the obligation is joint and several. Art. 77 (Succession to fines and penalties) The obligation on the monetary penalty is not passed on to the heirs. The successor at any title inter vivos in a commercial or industrial company is forced from the Tax Administration jointly and severally with the author for payment, in addition to the tax, the financial penalty that has been imposed for breaches of the rules relating to taxes relating to the company for the year in which the transfer takes place and for the two previous years. The obligation of the successor is limited to the debt for taxes and fines arising on the transfer date, the documents already notified and can not exceed the company is finally determined for registration tax purposes, unless the transfer is done fraud in Financial Administration of rights, of which the successor was aware. The knowledge is presumed, unless proved otherwise, when the trasferimnto was made within three months from the finding of a breach of a rule by which the tax law prescribes a monetary fine greater than $ 20,000,000. At the request and expense of the party, the Office shall issue a certificate on the existence of the disputes in progress and those already defined for which the debt was not satisfied. The negative certificate is full of liberation effect of the transferee of any joint liability with the transferor. TITLE XIV CRIMINAL PENALTIES Art. 78 (Penalties) and 'punished with first-degree imprisonment and a fine of up to L. 2,000,000, subject to the application of other administrative sanctions: 1) the issuer of invoices for nonexistent transactions; 2) those in the annex to the annual tax return, performs financial offices or otherwise use false documents or accounting records, altered or containing false information as proof of tax payments, to enjoy undue tax deductions, the deductions from the total income or exemptions or concessions, to hide all or part of the existence or reduce the amount of compensation, earnings, revenue, inventory, fees or other positive components of income, to hide all or part of fees or other amounts paid as a withholding agent, to simulate in whole or in part the existence or increase the amount of costs, charges or other negative components of income; 3) Who in the issued invoices, notes made in the books or in the annual declaration submitted as a withholding agent indicates fictional names or however different from the real ones so that it precluded the identification of the subjects which they refer; 4) those who, in the certificates issued to persons to whom he paid fees or other amounts subject to withholding tax as an advance, indicating amounts, before withholdings, other than those actually paid; 5) those who work with other fraudulent means in order to evade taxes on income or to allow and facilitate the escape from others. The complaint to the judicial authority is advanced by Tax. And 'he repealed the last paragraph of Article 389 of the Criminal Code. Art. 79 (Omission of payment of withholding taxes) Who does not pay withheld by way of advance payment or tax is punished, if the amount in the same calendar year exceeds the sum of L. 20,000,000, with prisons in the first degree and a fine ranging from 1/4 to half of the unpaid sums, even outside the limits of Article 84 of the Code
Criminal addition to the sanctions referred to in Article 67. If the offense is minor the penalty is a daily fine second degree. The complaint to the Commissioner's Court provides the Tax Office. Art. 80 (Subtraction of property tax collection enforcement) In the case of fraudulent subtraction coercive execution of their property or others by the taxpayer, apply the penalties provided by the Penal Code for theft of garnishee compendium. To expose to the Commissioner's Court provides the Treasury. Art. 81 (Prohibition) The sentence for one of the crimes provided for in Articles 78, 79 and 80 of this Act matter: a) the prohibition of the fourth degree by member of the Board of Estimate and the Investigation Commission and the functions of representation and assistance in tax matters; b) the third-degree disqualification from public office; c) the interdiction of the second degree from management at the Company and other entities with legal personality. Executive offices are considered those of director, general manager, mayor or member of the supervisory bodies and the liquidator; d) the prohibition of second degree from the conclusion of contracts or supply with the Public Administration; e) the suspension of the operating license for six months; f) publication of the judgment. TITLE XV TRANSITIONAL AND FINAL PROVISIONS Art. 82 (Establishing and effect) The general tax on income covered by this law absorb the normal and complementary tax on income governed by Law 16 March 1922 n. 10, the Social Security tax and the tax progressive complement established by Law 22 December 1955 n. 42, as well as the tax addition of social security referred to in Article 24 of Law 11 February 1983 n. 15. The general income tax is introduced as of 1 January 1985 and applies on incomes who profit to taxable persons referred to in Article 2 after 31 December 1984. Art. 83 (Tax Reports in progress) The procedures, the timing and the measures for the collection of additional taxes and additional social security tax on income from employment relating to the tax periods 1983 and 1984 are regulated by Regency Decree on the proposal of the State Congress. As revenue taxes and social security related to any other tax ratio in progress are collected by the Tax by roles with the criteria and procedures provided for by Law No 1922. 10, as amended, although repealed. They are subject to the rights acquired in the field of tax exemption established by special laws; income derived benefit from those exemptions, until the expiration of those exemptions, are taxed generally governed by the law in proportion to the tax levy that would have acquitted under current tax law. In view of the subsequent operational commitments to the preparation stage for the application of this law as well as the overlap of two tax laws, starting from the current year and only for the biennium 1985-1986, the deadlines set by the law in force for the surveys and the collection taxes are extended, if necessary, of a quarter. Art. 84 (Inventories) The persons referred to in Article 20 must complete the inventory of existing inventories at December 31, 1984 in the manner provided by the present law as applicable and should be sent to the Office copy of the register Tax by 31 March 1985. the closing stocks referred to in the previous paragraph constitute opening stocks cone of fiscal year 1985. Art. 85 (general tax collection for the year 1985 and subsequent tax years) persons referred Article 19 until June 30, 1985 to be paid by way of advance payment of income tax for 1985, 40% of central government taxes and social security to the same charged in relation to the tax year 1984. the entities referred to in articles 15:20 must pay, by way of an advance payment for 1985, 60% of central government taxes and social security to the same charged for 1984 within the period prescribed in the preceding paragraph. By 30 November 1985, the persons referred to in the preceding paragraphs must pay an additional 20% of the taxes specified in paragraphs recalled. The balance of the general tax for 1985 should ssere paid before the date of submission of the declaration relating to the tax period. The collection of the tax on to the following years, through the collection in each tax period of at least two payments commensurate to the tax paid by self-taxation, takes place according to
the criteria, times and measurements are established annually with Reggenziale Decree by March 31 of each year. The measure of the advance may not exceed 90%. For new business income, advance payments are commensurate with an agreed conventional taxable with Commissions of Investigations. Art. 86 (Technical Amendments) Where not already provided by law, the values ​​to which they are connected and commensurate obligations, duties, powers, depreciation and administrative sanctions, as well as the values ​​shown in the table of tax rates, can be varied, based on the inflationary effects that are detected with Regency Decree on the proposal of the State Congress. Art. 87 (Administrative provisions) The Secretariat of State for Finance, after consultation with the Tax Office, may predispose administrative circulars containing directions and instructions for the application of tax law. Art. 88 (Publication of income) At least every two years by the Tax Office, are published the income reported by taxpayers and those confirmed. Art.89 (repealed provision) the following provisions: - Law No 16 March 1922 are repealed. 10; - The law 31 August 1922 n. 28; - The law 4 August 1927 n. 16; - The Law of 14 September 1950 n. 25; - The Law of 15 September 1953 n. 33; - Articles 3, 4, 5 of the Law 27 February 1954 n. 5; - Point a) of Article 14, Articles 15, 16 and 17 and paragraph 5 of Article 67 of Law 22 December 1955 n. 42; - The Regency Decree 29 November 1956 n. 33; - Law 13 May 1959 n. 19; - Law 6 December 1960 n. 29; - The law 4 August 1962 n. 26; - The law 30 November 1964 n. 62; - The Decree of 23 August 1974 n. 74; - Article 16, paragraph 1, of the law 28 October 1975 n. 37; - The Law of 22 July 1977 n. 41; - Articles 3, 4, 5, 6, 7, 8, 9, 10 of the Law of 4 May 1977 n. 22; - Law 28 February 1980 n. 12; - Law 29 February 1980 n. 14; - Article 24 of the law 11 February 1983 n. 15; - Article 6 of the law 28 March 1984 n. 36; - Any other provision contrary to this law. Art. 90 (Entry into force) Without prejudice to the effects of Article 82 last paragraph of this Act shall enter into force 15 days after its legal publication. Our Residence, this day of 23 October 1984/1684 THE CAPTAINS REGENT Marino Bollini - Giuseppe Friends THE SECRETARY OF STATE FOR INTERNAL AFFAIRS Alvaro Selva TABLE ATTACHED TO THE PROGRESSIVE TAX RATES ATTACHED TO THE LAW October 13, 1984 # 91 (ART. 12) up to 8,000,000 15% on the full amount from 8,000,001 to 14,000,000 L. 1,200,000 + 20% on the portion exceeding 8,000,000 from 14,000,001 to 20,000,000 L. 2,400,000 + 24% sullaparte exceeding 14 million from 20,000,001 to 30,000,000 L. 3,840,000 + 29% sullaparte exceeding 20 million from 30,000,001 to 40,000,000 L. 6,740,000 + 35% sullaparte exceeding 30 million from 40,000,001 to 60,000 .000 L.10.240.000 + 40% sullaparte exceeding 40 million from 60,000,001 to 100,000,000 L.18.240.000 + 45% on the portion exceeding 60 million over L.36.240.000 100 000 001 + 50% on the excess 100000000