Businesses operating in Monaco face revised penalties for late tax declarations and fraudulent reporting under new regulations published in the Journal de Monaco on Friday, October 30, introducing stricter filing requirements and financial sanctions for non-compliance…
The measures, established under Sovereign Ordinance No. 12.211, amend the Principality’s existing business profits tax framework. Companies failing to submit required declarations on time, or respond to certain tax authority enquiries within 30 days, face a €700 fine.
Additional penalties will apply to unpaid tax liabilities arising from late declarations. Businesses filing late without receiving a formal notice, or within 30 days of receiving one, face a 10 percent surcharge. This increases to 40 percent if the declaration remains outstanding beyond that deadline.
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The regulations also distinguish between deliberate non-compliance and fraud, introducing surcharges of 40 percent for bad faith and 80 percent for fraudulent conduct. Late tax payments will additionally attract interest of 0.2 percent per month.
The changes apply to financial years beginning on or after January 1, 2026, and strengthen the authorities’ ability to enforce tax obligations. For affected businesses, timely reporting and accurate declarations will be increasingly important in avoiding financial penalties.
Image: Jakub Żerdzicki
