Editing Monaco (section)

===Low taxes===
[[File:City of Monaco in 2021.06.jpg|thumb|Boulevard des Moulins meets Avenue Saint-Michel]]
[[File:City of Monaco in 2021.05.jpg|thumb|Pedestrian crossing on Avenue de la Costa]]

Monaco has a 20% VAT plus high social-insurance taxes, payable by both employers and employees. The employers' contributions are between 28% and 40% (averaging 35%) of gross salary, including benefits, and employees pay a further 10% to 14% (averaging 13%).<ref>{{cite web |url=http://www.lowtax.net/lowtax/html/jmcpetx.html |title=Monaco Personal Taxation |access-date=28 May 2010 |archive-date=24 November 2010 |archive-url=https://web.archive.org/web/20101124183217/http://lowtax.net/lowtax/html/jmcpetx.html |url-status=live }}</ref>

Monaco has never levied [[income tax]] on [[individual]]s,<ref name=telegraph/> and foreigners are thus able to use it as a "[[tax haven]]" from their own country's high taxes, because as an independent country, Monaco is not obliged to pay taxes to other countries.<ref>{{cite news |url=https://www.telegraph.co.uk/finance/globalbusiness/7243401/Monaco-might-not-charge-residents-income-tax-but-its-no-tax-haven.html |archive-url=https://ghostarchive.org/archive/20220110/https://www.telegraph.co.uk/finance/globalbusiness/7243401/Monaco-might-not-charge-residents-income-tax-but-its-no-tax-haven.html |archive-date=10 January 2022 |url-access=subscription |url-status=live |title=Monaco might not charge residents income tax, but it's no tax haven |work=The Daily Telegraph |date=16 February 2010 |access-date=28 May 2012 |location=London}}{{cbignore}}</ref><ref>{{cite web |url=http://www.lowtax.net/lowtax/html/jmccfir.html |title=Monaco Country and Foreign Investment Regime |publisher=Lowtax.net |access-date=22 March 2012 |archive-date=12 May 2012 |archive-url=https://web.archive.org/web/20120512031238/http://www.lowtax.net/lowtax/html/jmccfir.html |url-status=live }}</ref>

The absence of a personal income tax has attracted many wealthy "tax refugee" residents from European countries, who derive the majority of their income from activity outside Monaco. [[Celebrity|Celebrities]], such as [[Formula One]] drivers, attract most of the attention but the vast majority are lesser-known business people.<ref>{{cite news |author=David Leigh |url=https://www.theguardian.com/business/2006/jul/10/frontpagenews.uknews |title=The tax haven that today's super-rich City commuters call home |work=The Guardian |date=10 July 2006 |access-date=28 May 2012 |location=London |archive-date=22 September 2013 |archive-url=https://web.archive.org/web/20130922204303/http://www.theguardian.com/business/2006/jul/10/frontpagenews.uknews |url-status=live }}</ref>

Per a bilateral treaty with France, French citizens who reside in Monaco must still pay income and wealth taxes to France.<ref name="state.gov">{{cite web |url=https://2009-2017.state.gov/e/eb/rls/othr/ics/2015/241564.htm |title=France and Monaco |work=U.S. Department of State |access-date=21 May 2019 |archive-date=4 February 2020 |archive-url=https://web.archive.org/web/20200204222739/https://2009-2017.state.gov/e/eb/rls/othr/ics/2015/241564.htm |url-status=live }}</ref> The principality also actively discourages the registration of foreign corporations, charging a 33 per cent [[Corporate tax|corporation tax]] on profits unless they can show that at least three-quarters of turnover is generated within Monaco. Unlike classic tax havens, Monaco does not offer offshore financial services.<ref name="telegraph" />

In 1998, the [[Centre for Tax Policy and Administration]], part of the [[Organisation for Economic Co-operation and Development]] (OECD), issued a first report on the consequences of the financial systems of known [[tax haven]]s.<ref>{{cite web |url=http://www.escapeartist.com/OREQ24/Offshore_Tax_Havens.html |title=Obscure Tax Havens |publisher=Escapeartist.com |access-date=28 May 2012 |archive-date=26 June 2012 |archive-url=https://web.archive.org/web/20120626135309/http://www.escapeartist.com/OREQ24/Offshore_Tax_Havens.html |url-status=live }}</ref> Monaco did not appear in the list of these territories until 2004, when the OECD became indignant regarding the Monegasque situation and denounced it in a report, along with [[Andorra]], [[Liechtenstein]], [[Liberia]], and the [[Marshall Islands]]. The report underlined Monaco's lack of co-operation regarding financial information disclosure and availability.<ref>''Declaration of 18 April 2004, by the representative of the [[Organisation for Economic Co-operation and Development|OECD]] Centre for Tax Policy and Administration Gabriel Makhlouf regarding the list of alleged [[tax haven]]s non-cooperative countries comparable''</ref><ref>''Stage Report 2004: Project of [[Organisation for Economic Co-operation and Development|OECD]] on the detrimental tax practices, [[Organisation for Economic Co-operation and Development|OECD]], Paris, 2004''</ref> Later, Monaco overcame the OECD's objections and was removed from the "grey list" of uncooperative jurisdictions. In 2009, Monaco went a step further and secured a place on the "white list" after signing twelve information exchange treaties with other jurisdictions.<ref name=telegraph/>

In 2000, the [[Financial Action Task Force on Money Laundering]] (FATF) stated: "The anti-money laundering system in Monaco is comprehensive. Difficulties have been encountered with Monaco by countries in international investigations on serious crimes that appear to be linked also with tax matters. In addition, the FIU of Monaco (SICCFIN) suffers a great lack of adequate resources. The authorities of Monaco have stated that they will provide additional resources to SICCFIN."<ref>{{cite web |url=http://www.fatf-gafi.org/dataoecd/56/43/33921824.pdf |archive-url=https://web.archive.org/web/20110726051252/http://www.fatf-gafi.org/dataoecd/56/43/33921824.pdf |archive-date=26 July 2011 |title=Review to Identify Non-Cooperative Countries or Territories: Increasing the Worldwide Effectiveness of Anti-Money Laundering Measures |publisher=Financial Action Task Force on Money Laundering |date=22 June 2000 |location=Paris |page=8 |access-date=23 May 2009 |url-status=live}}</ref>
[[File:Monaco 2022.jpg|thumb|Tall buildings in Monaco]]
Also in 2000, a report by French politicians [[Arnaud Montebourg]] and [[Vincent Peillon]] stated that Monaco had relaxed policies with respect to money laundering including within its casino and that the Government of Monaco had been placing political pressure on the judiciary so that alleged crimes were not being properly investigated.<ref>{{cite web |url=http://www.assemblee-nationale.fr/11/rap-info/i2311-2.asp |title=Assemblee-Nationale report |publisher=Assemblee-nationale.fr |date=27 July 1987 |access-date=28 August 2010 |archive-date=15 August 2010 |archive-url=https://web.archive.org/web/20100815132524/http://www.assemblee-nationale.fr/11/rap-info/i2311-2.asp |url-status=live }}</ref> In its Progress Report of 2005, the [[International Monetary Fund]] (IMF) identified Monaco, along with 36 other territories, as a [[tax haven]],<ref>''Financial Centres with Significant Offshore Activities in Offshore Financial Centres. The Assessment Program. A Progress Report Supplementary Information, IMF, Washington, 2005''</ref> but in its [[Financial Action Task Force on Money Laundering|FATF]] report of the same year it took a positive view of Monaco's measures against money-laundering.<ref>''Review to Identify Non-Cooperative Countries or Territories: Increasing the Worldwide Effectiveness of Anti-Money Laundering Measures, [[Financial Action Task Force on Money Laundering|FATF]], Paris, 2005''</ref><ref>''Review to Identify Non-Cooperative Countries or Territories: Increasing the Worldwide Effectiveness of Anti-Money Laundering Measures, FATF, Paris, 2006''</ref>

The [[Council of Europe]] also decided to issue reports naming tax havens. Twenty-two territories, including Monaco, were thus evaluated between 1998 and 2000 on a first round. Monaco was the only territory that refused to perform the second round, between 2001 and 2003, whereas the 21 other territories had planned to implement the third and final round, planned between 2005 and 2007.<ref>''First Mutual Evaluation Report on the Principality of Monaco, Moneyval, Strasbourg, 2003''</ref>

In June 2024, the FATF added Monaco to its "grey list", which includes countries needing "increased monitoring" due to statewide issues of money laundering and terrorist financing.<ref name="dw"/>