The following expense types are not deductible or have limited deductibility for Monaco tax purposes:

Expenses incurred in connection with corruption practices are not deductible;
Expenses incurred with respect to transactions not carried on at arm’s length, including royalties, brokerage, and commission fees paid to related parties, are not deductible;
Interest paid by a company to its shareholders at an interest rate exceeding 200 basis points the interest rate published by the French Central Bank is not deductible;
Interest paid by a company to its direct controlling shareholders on the portion of the loan exceeding 50% of the amount of share capital of the company is not deductible (see Sec. 13.2.1.);
Net interest expenses exceeding the higher of EUR 3 million per year or 30% of EBITDA are not deductible (see Sec. 13.2.1.);
Net interest payment associated with a related party loan exceeding the higher of EUR 1 million per year or 10% of tax EBITDA is not deductible (see Sec. 13.2.1.);
Leisure expenses connected with hunting, fishing, yachts, and private residences in Monaco are not deductible;
Distributed dividends are not deductible;
Any payments that are disguised profit distributions are not deductible;
Penalties connected with violation of the law are not deductible; and
Remunerations paid to associates and managers are partially deductible. The maximum deductible amounts for small companies (turnover below EUR 3.5 million for service providers and below EUR 7 million otherwise) are fixed periodically by the tax authorities. For other enterprises, the deduction is capped at the amount deemed not excessive in comparison with international practice, notably with the EU as the principal reference.

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