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This article contains a discussion by TripAdvisor members concerning the above topic.
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As in many european countries, service is included in Monaco restaurants and bars, so that you do not have to tip. Of course tips will be gladly accepted. But i would suggest to give a tip only if the waiter did something special for you or went out of his way to help you or if you are a regular and you want to be recognized and get special attention when you return.
Porters and Valets should be tipped. As well as hair dressers if you have your hair done. A 5 euros bank note is a common tip.
When it comes to Taxi drivers, they are all self employed, so the price of the ride goes straight into their pockets. No need to tip them!