Andorra changes taxation

14.10.2011 Recently the head of the Andorran government has confirmed the plan of taxation change of the state. The new taxes will be introduced in the principality in 2012. The head of the government was supported for this program of measures by the President of France.

The package of measures on the one hand provides the introduction of personal income tax, VAT and on the other hand liberalization of legislation in order to foreign investments attraction.

During the legislative changes discussion the issues on taxation transparency and steps towards further cooperation with European states were covered.

Expert’s opinion

“Today Andorra provides preferential tax regime (corporate tax rate is only 10%). However the measures concerning new taxes introduction including corporate ones won’t lead to financial flows increase definitely. What liberalization of legislation in order to foreign investors attraction exactly includes is not clear now”.

On the basis: www.tax-news.com

Andrianova Irina ( the lawyer of international consulting department of “Honest & Bright” )