Andorra To Adopt Personal Income Tax
June 4, 2013 Taxation in Andorra
ANDORRA LA VELLA – Andorra is taking steps towards shedding its image as as tax haven jurisdiction by enacting a tax on incomes.
Late last week the Prime Minister of Andorra Antoni Marti announced that by June 30th the country will put forward a new bill to introduce personal income taxes, the first time that such a tax will be enacted in the country.
The introduction of the personal income tax system is aimed at “progressively bring its tax system in line with international standards”.
Currently no personal income tax is levied on individuals based in the country, although a nominal corporate income tax rate of up to 10 percent was introduced last year.
The Prime Minister did not reveal the extent or conditions of the proposed personal income tax, but more details are expected to be released within the next few weeks.
As part of the country’s efforts to further cooperate with the EU to stem the occurrence of international tax evasion, the government of Andorra is also engaging in negotiations and discussions on the possibility of entering into information sharing agreements with other EU member states.
Photo by Alan Cleaver