San Marino: A Fiscally Conservative Country

San Marino is the perfect example of a country that can produce growth in a heavily driven banking economy. The corporate profits tax rate in San Marino is 19 percent, capital gains are subject to a five percent tax; and interest is subject to a 13 percent withholding tax according to World Bank Group.
This is a fiscally conservative country that does not issue public debt securities either. To finance deficits, the country draws down central bank deposits.
Thanks to the way the country operates, it can be the recipient of such glorious forecasts as those offered by the IMF in Tuesday’s report. The rest of the world stands to learn a thing or two from San Marino.

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