Tax on savings abroad is a bad business card for investors
Osla had immediately announced and denounced it: the Decree 142 of 2020, “Declaration of the capital and financial assets held abroad and of the company shares held everywhere”, was the viaticum for a permanent asset. The Secretary of State Gatti at the time had assured us that we were wrong but today, the Government, in the Budget under discussion in the Council, proposed the introduction of a financial tax on financial assets abroad, called IRAFE. Our Association reiterates its firm opposition to the introduction of wealth taxes and it is even more so in a time of economic crisis like the one we are experiencing due to the Covid-19 emergency. The attempt to introduce a permanent asset had also been made by the previous government and, even then, Osla had strongly highlighted his disappointment. In addition to this, taxing potential assets abroad legitimately (therefore declared) is a bad business card for investors and driving them away. It is the exact opposite of what San Marino should do at the moment, which is to attract new capital and new entrepreneurs for the country’s economic development. Also taking into account that these are sums on which the taxpayer has already paid the taxes at the origin, it becomes a real asset this time permanent and not extraordinary as it happened a few years ago. And unfortunately it matters little to provide for a relatively low rate (then it depends on the tax base!) And exemptions which, moreover, introduce clear discrimination between people residing in the area. It is the tax as such that is deleterious as it sends a rather negative message about the resilience and reliability of our country system, thus alienating potential investors. Restoring confidence in our banking system and therefore ensuring that San Marino savers also invest in their country cannot and must not pass through an obligation, an imposition of a fiscal nature: this indeed has and will have precisely the effect. It is necessary to make our country attractive, thus favoring the establishment of new economic realities and the necessary investments. Only in this way will it be possible to create income, jobs, tax revenues that allow our country to cope with the debt contracted which is instead used mainly for current spending. With this imprudent maneuver, on the other hand, our country system will be considered unattractive, since in fact it imposes on its residents choices of a financial and patrimonial nature, in disregard of the universally recognized principle in advanced systems of the free movement of capital.
Cs Osla
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