On November 28, the Republic of San Marino officially ratified the Convention on the Elimination of Double Taxation concerning Taxes on Income and Capital, as well as the Prevention of Fiscal Evasion and Avoidance, signed with Lithuania earlier this year. This landmark agreement is a significant step forward in fostering robust economic relations between the two nations.
The treaty, signed in Strasbourg on May 17, 2024, is much more than a bilateral agreement—it represents a cornerstone of San Marino’s commitment to international fiscal cooperation. With this ratification, San Marino’s network of double taxation agreements expands to an impressive total of 28, with 26 already in force, including 12 agreements with EU member states.
Key highlights of the treaty include:
- A well-defined scope of application ensuring clarity for residents of both countries.
- Provisions for avoiding double taxation, particularly through detailed rules for income, dividends, interest, and royalties.
- A commitment to non-discrimination, ensuring fairness in taxation between nationals and non-nationals.
- A framework for mutual exchange of information, aligned with the OECD Model Convention 2017, promoting transparency and the fight against tax evasion.
This agreement enhances the economic framework between San Marino and Lithuania and reinforces San Marino’s status as a credible and proactive partner in the global tax landscape. It underscores a dedication to creating a stable and equitable environment for cross-border investments, benefiting businesses and individuals alike.
As a professional deeply invested in international tax law, I see this as a testament to the power of collaboration and the importance of clear, equitable rules in a globalized economy. Such agreements pave the way for growth, cooperation, and mutual prosperity.
Kudos to the teams from both nations who worked diligently to bring this agreement to fruition! Let’s continue championing initiatives that strengthen international partnerships and promote sustainable economic development.