There are no personal income taxes. Indirect taxes include the following: a value-added tax, over at 19.6% in 2002, reduced from 20.6% 1 April 2000; a service tax on compensation received by Monégasque firms for services rendered in Monaco and France; excise taxes on alcoholic beverages; registration fees; and warranty duties on gold, platinum, and silver jewelry. Monaco is treated as part of France for VAT purposes.
There is a tax of up to 35% on the profits of businesses that obtain more than one-fourth of their gross profits from operations outside Monaco. Corporations whose income is derived from royalties, licenses, trademarks, or other industrial or artistic property rights are subject to this tax, whether or not the income arises outside Monaco. There are no inheritance or gift taxes between spouses or between parents and children. Between brothers and sisters, the rate is 8%; between uncles or aunts and nephews or nieces, 10%; between other relatives, 13%; and between unrelated persons, 16%. Monaco grants no tax concessions to new businesses.
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