background image

San Marino - Italy Tax Treaty (as amended by 2012 protocol) — Orbitax Tax Hub

Note: This Treaty may be impacted by the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS (MLI). MLI impact on Tax Treaties is available with the Orbitax International Tax Research & Compliance Expert.

ARTICLE 23

Elimination of Double Taxation

(1) It is agreed that double taxation shall be eliminated in the Contracting States according to the following paragraphs of this Article.

(2) With respect to Italy:

  • If a resident of the Italian Republic derives income which is taxable in San Marino, then Italy, while calculating the taxes on income referred to in Article 2 of this Convention, shall include such income in the tax base of that resident, unless otherwise provided by the provisions of this Convention.
  • In such case, Italy shall deduct from the taxes calculated in this manner, the income tax paid in San Marino, but the amount so deducted shall not exceed the tax paid in Italy and attributable to the above-mentioned income in proportion to which such income contributes to the total income.
  • However, no deduction will be allowed under Italian laws if such income is subjected to taxation in Italy by deduction at the source on request of the beneficial owner of the income.

(3) With respect to San Marino:

  • If a resident of San Marino derives income which is taxable in the Italian Republic, then San Marino while calculating the taxes on income referred to in Article 2 of this Convention, shall include such income in the tax base of that resident, unless otherwise provided by the provisions of this Convention.
  • In such case, San Marino shall deduct from the taxes calculated in this manner, the income tax paid in the Italian Republic, but the amount so deducted shall not exceed the tax paid in San Marino and attributable to the above-mentioned income in proportion to which such income contributes to the total income.
  • However, no deduction will be allowed under San Marino laws if such income is subjected to taxation in San Marino by deduction at the source on request of the beneficial owner of the income.