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.