Sovereign Ordinance No. 12.211 of 23 October 2026, published in the Journal de Monaco of 30 October 2026, reforms the penalties attached to the corporate profits tax (Impôt sur les Bénéfices, ISB). The new rules apply to financial years beginning on or after 1 January 2026. For calendar-year companies, the first returns concerned are therefore those due before 1 April 2027.   Lighter penalties for underpayment and late payment : Bad faith: surcharge of 40% of the tax omitted or put at risk. Fraudulent conduct: surcharge of 80%. Until now, both situations triggered a fine equal to four times the tax. Late payment: interest of 0.20% per month, instead of 3% for the first month and 1% for each additional month.   Example: for €25,000 of tax avoided through fraudulent conduct, the penalty falls from €100,000 to €20,000.   Stricter penalties for filing failures : Late filing of the tax return: fixed fine of €700, instead of €15 to €75. In addition, a surcharge of 10% of the tax applies where no formal notice was issued or where the return is filed within 30 days of it. It rises to 40% thereafter.   ⚠️ Key point: the Monaco Tax Department may now send a request for information to any company that may be liable to the tax. For liable companies, this request constitutes a formal notice to file the return. Failure to respond within 30 days triggers the €700 fine.   Finally, taxpayers now have 30 days, instead of 20, to respond to a proposed tax adjustment.   In short, the reform reduces penalties on unpaid tax but makes missed filing deadlines significantly more costly.   ⚖️ The tax department of GORDON S. BLAIR LAW OFFICES assists companies and their directors in meeting their filing obligations and in their dealings with the Monaco Tax Department.

Gordon S. Blair is a partner of several student associations at Jean Moulin Lyon 3 University, in the fields of tax law, business law and DJCE.   A commitment to passing on knowledge For more than a century, Gordon S. Blair has advised individuals, families and businesses on international legal and tax matters. Sharing this experience with students is a natural extension of our work. Our partnerships with student associations reflect a simple conviction: the quality of tomorrow’s advice is built today, through contact with practice.   Leading programmes Our partnerships with student associations at Jean Moulin Lyon 3 University cover leading programmes in: tax law, at the heart of our wealth and cross-border advisory work; business law, essential to structuring groups and investments; the DJCE (Diplôme de Juriste Conseil d’Entreprise), which has trained high-level business lawyers for decades.   Supporting students In practice, our commitment aims to support students throughout their studies, share our experience of international legal and tax advice, and contribute to their training. We thank our student association partners for their trust and congratulate the students on their commitment.

On 30 October 2026, the Financial Action Task Force (FATF) officially announced Monaco’s removal from its list of jurisdictions under increased monitoring, commonly known as the “grey list”. This decision marks a significant milestone for the Principality and recognises the substantial efforts undertaken in recent years to strengthen its framework for combating money laundering and terrorist financing (AML/CFT).   A Positive Signal for Monaco’s International Reputation and Attractiveness Beyond its regulatory significance, this development represents an important step forward for Monaco’s international reputation and economic attractiveness. It contributes to strengthening the confidence of investors, financial institutions and international business partners, while reinforcing the Principality’s position as a financial and business centre committed to upholding international standards.   A Continued Commitment to Transparency and Compliance Monaco’s removal from the FATF grey list reflects the progress achieved in enhancing financial transparency, regulatory supervision and the prevention of money laundering risks. It also highlights the importance of maintaining these efforts to ensure lasting improvements and preserve a legal and regulatory framework aligned with international requirements.   Gordon S. Blair welcomes this significant development, which reflects the Principality’s sustained commitment to strengthening financial transparency and meeting international standards in the fight against money laundering. This achievement represents a positive step for Monaco’s legal and economic environment, as well as for the wider business community contributing to its international standing.   Source: Official Press Release – Government of Monaco