Taxes in Andorra. Andorra is a very popular jurisdiction for a company registration and maintain your business internationally, the main reason is taxes in Andorra.
Before in Andorra were no taxes on profits, dividends or income. The taxes impinging on companies are business license fees, social security contributions, property taxes and sales taxes. Corporate entities paid registration fees to the Government depends on Types of Company
Following the introduction of the Foreign Investment Law in November 2008, the government anticipated the adoption of two additional laws. One law has introduced a tax rate on the profits of companies of between 5 and 10%. The other law is set to create a value-added tax of around 4%-5% that will replace all of the existing indirect taxes.
Non-Residents subject to taxes in Andorra
The Taxation of Non-Residents Act, 2010, came into force on 1 April 2011. Non-resident companies and individuals are now subject to tax on local-source income at a rate of 10%. Resident companies and individuals engaged in business activities are subject to a 5% tax from January, 2012 , rise to 10% from 2013.
The introduction of a Value-Added Tax regime is forthcoming, will be imposed on a broader spectrum of goods and services, at an anticipated 5% rate. Low rate of 1% is expected to be available on a number of healthcare goods and services; on basic living essentials, such as rent and water; and welfare goods and services.
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