A new law has been passed in Monaco which raises penalties and interest rates for companies who are late to pay their taxes. Sovereign Ordinance No. 12.211, published in the Journal de Monaco on 30 October 2026, has updated bill No. 3.152 from 1964. The amendments apply to the tax on profits for financial years beginning on or after 1 January 2026.
The law strengthens the reporting obligations for companies, and increases penalties in the event of failure to declare, late payment, or insufficient taxation.
“From now on, the tax inspector can send a request for information to companies that may be liable for corporate income tax. For companies that are liable, this request serves as a formal notice to file their tax return,” says the Princely Government.
Failure to file the declaration within the legal deadline, or failure to respond within thirty days, is punishable by a tax penalty of 700 euros.
Late filing of the tax return results in a 10% surcharge if no formal notice has been issued, or if the return is filed within thirty days of receiving a formal notice. This surcharge increases to 40% if the return is not filed within the timeframe. In cases of bad faith, the unpaid or compromised tax is subject to a 40% surcharge, which increases to 80% in cases of fraudulent activity.
Furthermore, a late payment interest rate of 0.20% per month has been introduced, particularly in cases that default or underpay their tax balance.
The new legislation specifies how this interest is calculated based on the payment due dates and rectification procedures.
An extension for taxpayers
Finally, as part of the procedure for correcting tax returns, the period granted to taxpayers to accept corrections by the administration has been extended from 20 days to 30 days.
