In order to promote the commercial entrepreneurial activity of foreign economic operators in the Republic of San Marino and facilitate their establishment, a simplified tax regime is established applicable, for the first twenty-four months of activity, to foreign companies, active in the retail trade sector.
Foreign economic operators, carrying out retail trade, must be established in their specific sector at an international level or be owners of internationally recognised brands and satisfy the requirements set out below, as well as decide to avail themselves of the option of the simplified tax regime.
The simplified tax regime can be used by the foreign company by communicating it to the Economic Activities Office, at the same time as issuing the authorisation to operate.
Access requirements
The access requirements to the simplified tax regime are satisfied if one of the following conditions occurs:
- the foreign economic operator, or the group of companies to which the economic operator belongs, carries out the retail trade activity retail in at least three different States;
- the foreign economic operator carries out retail trade activities in at least three shopping centres or outlets or single-brand stores, located in the territory of the European Union or in a non-EU country.
The foreign economic operator must not have previously benefited from the simplified tax regime.
The retail trade activity may only be carried out within one of the shopping centres, defined and identified by the legislation in force in the Republic of San Marino.
Unless otherwise established, the foreign economic operator, who makes use of the simplified tax regime, is subject to the regulations on economic activities in force in the Republic of San Marino.
Simplified tax regime
For the first twenty-four months of activity, the economic operator, who satisfies the established requirements, may exercise the option for the simplified tax regime which provides for the application of a substitute tax in the amount of 12 percent calculated on the value of the sales made. This tax is a substitute for the general tax on income, produced by the foreign economic operator in the territory, pursuant to Law 16 December 2013 n.166 and subsequent amendments and the tax on imports, with regard to raw materials, pursuant to Law 22 December 1972 n.40 and subsequent amendments.
The substitute tax must be paid at the end of each quarter by the fifteenth day of the following month, by filing, at the Tax Office, the documentation certifying the goods imported into the territory and sold. The aforementioned payment fulfills the obligations of filing the tax return.
The foreign economic operator, who has exercised the option for the simplified tax regime, can request the application of the ordinary tax regime even before twenty-four months have passed from the start of the activity. In this case, the simplified tax regime ceases and the foreign economic operator is required, within thirty days of the request, to pay the substitute tax, as well as to regularize the imported and unsold goods in accordance with the provisions of Law no. 40/1972 and subsequent amendments.
The substitute tax is applied at a rate of 5 percent only in relation to commercial exports carried out pursuant to Law no. 43 of 14 March 1991.
The foreign economic operator who has exercised the option for the simplified tax regime is required to comply with the tax and accounting obligations set out in Article 9 of Law no. 82 of 30 May 2022 for foreign economic operators carrying out activities in temporary shops. Upon request of the Tax Office, the foreign economic operator must exhibit the accounting documentation relating to the commercial activity, prepared in accordance with the provisions of the State in which the operator is based.
The secondment of employees of the foreign economic operator to the commercial activity may take place in derogation from the provisions of Chapter II of Delegated Decree 30 October 2023 n.153.
Coordination
Foreign economic operators who, on the date of entry into force of the law, carry out the retail trade activity under the temporary shop regime pursuant to Law n.82/2022 and meet the requirements, may opt for the simplified regime, in the current financial year, by deducting from the duration of twenty-four months the tax relief periods already enjoyed.
The foreign economic operator who, after having benefited from the simplified tax regime for twenty-four months, continues to carry out the same economic activity in the territory by establishing a Sammarinese law companyese, can benefit from the incentives referred to in letter c), paragraph 1, of article 73 of Law no. 166/2013 and subsequent amendments, by deducting from the duration foreseen for the aforementioned incentives the period of simplified tax regime already enjoyed pursuant to the law.
