{"id":3343,"date":"2021-10-30T12:19:04","date_gmt":"2021-10-30T11:19:04","guid":{"rendered":"https:\/\/onlyandorra.com\/?p=3343"},"modified":"2021-10-30T12:44:57","modified_gmt":"2021-10-30T11:44:57","slug":"impuesto-de-sociedades-en-andorra-is","status":"publish","type":"post","link":"https:\/\/onlyandorra.com\/en\/impuesto-de-sociedades-en-andorra-is\/","title":{"rendered":"Andorran Corporation Tax (IS)"},"content":{"rendered":"<div data-elementor-type=\"wp-post\" data-elementor-id=\"3343\" class=\"elementor elementor-3343\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-3457e89 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"3457e89\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-top-column elementor-element elementor-element-437bc39\" data-id=\"437bc39\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-aab4547 elementor-widget elementor-widget-image\" data-id=\"aab4547\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"768\" src=\"https:\/\/onlyandorra.com\/wp-content\/uploads\/2021\/10\/rutas-trekking-andorra-1024x768.jpg\" class=\"attachment-large size-large wp-image-3191\" alt=\"\" srcset=\"https:\/\/onlyandorra.com\/wp-content\/uploads\/2021\/10\/rutas-trekking-andorra-1024x768.jpg 1024w, https:\/\/onlyandorra.com\/wp-content\/uploads\/2021\/10\/rutas-trekking-andorra-300x225.jpg 300w, https:\/\/onlyandorra.com\/wp-content\/uploads\/2021\/10\/rutas-trekking-andorra-768x576.jpg 768w, https:\/\/onlyandorra.com\/wp-content\/uploads\/2021\/10\/rutas-trekking-andorra-16x12.jpg 16w, https:\/\/onlyandorra.com\/wp-content\/uploads\/2021\/10\/rutas-trekking-andorra-600x450.jpg 600w, https:\/\/onlyandorra.com\/wp-content\/uploads\/2021\/10\/rutas-trekking-andorra.jpg 1280w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-top-column elementor-element elementor-element-51b25e4\" data-id=\"51b25e4\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-11128af elementor-widget elementor-widget-text-editor\" data-id=\"11128af\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">As we had previously mentioned in another article on the <\/span><b>Andorran taxes <\/b><span style=\"font-weight: 400;\">and in <\/span><b>how to open a company in the territory of Andorra<\/b><span style=\"font-weight: 400;\">Corporate income tax (IS) is relatively new in Andorra as it came into force in 2012.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">The <\/span><b>IS is a light tax <\/b><span style=\"font-weight: 400;\">which was approved in order to be able to open Andorra internationally to other countries and thus receive new investments and that the whole process is legal and can be carried out well.<\/span><\/p><p><span style=\"font-weight: 400;\">In the following, we will explain <\/span><b>how corporation tax is applied in Andorra<\/b><span style=\"font-weight: 400;\">The purpose of the project is to provide information on how it works and where it comes from. Although <\/span><b>Andorra is no longer a tax haven<\/b><b>,<\/b><span style=\"font-weight: 400;\"> continues to offer significant advantages over neighbouring countries in the financial sector. It can be a great alternative for entrepreneurs and investors whose businesses and companies are not dependent on territorial and physical location.\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-693e210 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"693e210\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-b688784\" data-id=\"b688784\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-cb514a2 elementor-widget elementor-widget-text-editor\" data-id=\"cb514a2\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<h2><b>1. What is Corporate Income Tax (IS)?<\/b><\/h2><p><span style=\"font-weight: 400;\">The <\/span><b>IS is a direct tax levied by a jurisdiction and payable on the income or capital of companies and analogue legal entities.<\/b><span style=\"font-weight: 400;\">. Many countries have it imposed at national level, it can also be imposed at local or state level. Corporation tax can also be called capital tax. In the case of partnerships this tax is generally not levied on them.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">The <\/span><b>Corporation tax can be applied to<\/b><span style=\"font-weight: 400;\">:<\/span><\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Companies that are incorporated in the country itself\u00a0<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Corporations that are tax resident in the country<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Foreign companies with a permanent establishment in the country<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Corporations that have their business in the country and receive income from that country<\/span><\/li><\/ul><p><span style=\"font-weight: 400;\">Corporate income is usually determined in much the same way as the income that is levied on <\/span><a href=\"https:\/\/onlyandorra.com\/en\/impuestos-renta-andorra-irpf\/\"><b>individual contributors<\/b><\/a><span style=\"font-weight: 400;\">.<\/span><span style=\"font-weight: 400;\"> There are different ways of applying the tax, in general it is levied on net profits or by taxing shareholders if the company pays a dividend. The tax rate can vary depending on the jurisdiction and is usually fixed.\u00a0<\/span><\/p><p><b>Net profit is the net profit of the financial statement.<\/b><span style=\"font-weight: 400;\"> and each country may define this according to its particular tax system. In the case of taxation of dividends, the corporation may be required to withhold taxes before the dividend is distributed. There are system-specific rules for the taxation of the entity and its members upon dissolution or termination of that entity.<\/span><\/p><p><br \/><b><\/b><\/p><h2><b>2. History and structure of corporate income tax<\/b><b><\/b><\/h2><p><span style=\"font-weight: 400;\">The history of corporate income tax is very similar to that of personal income tax (<a href=\"https:\/\/onlyandorra.com\/en\/impuestos-renta-andorra-irpf\/\">IRPF<\/a>). In the United States, until the <\/span><b>Sixteenth Amendment <\/b><span style=\"font-weight: 400;\">various corporate income taxes were enacted, but were considered unconstitutional. <\/span><b>It was rectified in 1913 and the Corporation Tax was made formal within the Federal Income Tax.<\/b><\/p><p><span style=\"font-weight: 400;\">Corporate income tax is made up of the following structure:\u00a0<\/span><b><\/b><\/p><ul><li aria-level=\"1\"><b>Passive subject:<\/b><span style=\"font-weight: 400;\"> The tax is levied on companies with capital, with legal personality and where the partners have limited liability, such as public limited companies, limited liability companies, labour companies, etc. Although entities that do not have legal personality are exempt from paying the tax, there may be exceptions for investment funds and pension plans, but it is more common for them to be subject to a special tax.\u00a0<\/span><\/li><li aria-level=\"1\"><b>Taxable base: <\/b><span style=\"font-weight: 400;\">is the calculation of net income after deducting deductible expenses from gross income, taking into account depreciation, deductions, changes in assets and valuation of inventories.\u00a0<\/span><\/li><li aria-level=\"1\"><b>Tax rate: <\/b><span style=\"font-weight: 400;\">as mentioned above, the percentage applied to companies in general is <\/span><b>fixed and independent of the level of the tax base<\/b><span style=\"font-weight: 400;\">is proportional in nature. But there may be exceptions and special levies for non-profit companies, as well as for retained earnings and distributed profits.\u00a0<\/span><\/li><\/ul><p>\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-0c9667e elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"0c9667e\" data-element_type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-top-column elementor-element elementor-element-b3d7b24 tel-title\" data-id=\"b3d7b24\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-b357881 elementor-widget elementor-widget-heading\" data-id=\"b357881\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">CONTACT US<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a6e7714 elementor-widget elementor-widget-shortcode\" data-id=\"a6e7714\" data-element_type=\"widget\" data-widget_type=\"shortcode.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-shortcode\">\n<div class=\"wpcf7 no-js\" id=\"wpcf7-f1379-o1\" lang=\"ru-RU\" dir=\"ltr\" data-wpcf7-id=\"1379\">\n<div class=\"screen-reader-response\"><p role=\"status\" aria-live=\"polite\" aria-atomic=\"true\"><\/p> <ul><\/ul><\/div>\n<form action=\"\/en\/wp-json\/wp\/v2\/posts\/3343#wpcf7-f1379-o1\" method=\"post\" class=\"wpcf7-form init\" aria-label=\"\u041a\u043e\u043d\u0442\u0430\u043a\u0442\u043d\u0430\u044f \u0444\u043e\u0440\u043c\u0430\" novalidate=\"novalidate\" data-status=\"init\" data-trp-original-action=\"\/en\/wp-json\/wp\/v2\/posts\/3343#wpcf7-f1379-o1\">\n<fieldset class=\"hidden-fields-container\"><input type=\"hidden\" name=\"_wpcf7\" value=\"1379\" \/><input type=\"hidden\" name=\"_wpcf7_version\" value=\"6.1.1\" \/><input type=\"hidden\" name=\"_wpcf7_locale\" value=\"ru_RU\" \/><input type=\"hidden\" name=\"_wpcf7_unit_tag\" value=\"wpcf7-f1379-o1\" \/><input type=\"hidden\" name=\"_wpcf7_container_post\" value=\"0\" \/><input type=\"hidden\" name=\"_wpcf7_posted_data_hash\" value=\"\" \/>\n<\/fieldset>\n<p><span class=\"wpcf7-form-control-wrap\" data-name=\"name1\"><input size=\"40\" maxlength=\"400\" class=\"wpcf7-form-control wpcf7-text wpcf7-validates-as-required\" aria-required=\"true\" aria-invalid=\"false\" placeholder=\"Name\" value=\"\" type=\"text\" name=\"name1\" \/><\/span>\n<\/p>\n<p><span class=\"wpcf7-form-control-wrap\" data-name=\"tel\"><input size=\"40\" maxlength=\"400\" class=\"wpcf7-form-control wpcf7-tel wpcf7-validates-as-required wpcf7-text wpcf7-validates-as-tel\" aria-required=\"true\" aria-invalid=\"false\" placeholder=\"Telephone\" value=\"\" type=\"tel\" name=\"tel\" \/><\/span>\n<\/p>\n<p><input class=\"wpcf7-form-control wpcf7-submit has-spinner\" type=\"submit\" value=\"SEND\" \/>\n<\/p><div class=\"wpcf7-response-output\" aria-hidden=\"true\"><\/div>\n<input type=\"hidden\" name=\"trp-form-language\" value=\"en\"\/><\/form>\n<\/div>\n<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-top-column elementor-element elementor-element-d44afd8 tel-title\" data-id=\"d44afd8\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-4d07447 elementor-widget elementor-widget-heading\" data-id=\"4d07447\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Our Telephone:<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a3dc707 elementor-widget elementor-widget-text-editor\" data-id=\"a3dc707\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><a href=\"tel:+376 87 03 01\">+376 87 03 01<\/a><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-5ee370f elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"5ee370f\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-ac0c2e1\" data-id=\"ac0c2e1\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-7953179 elementor-widget elementor-widget-text-editor\" data-id=\"7953179\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<h2><b>3. Corporate Income Tax in Andorra:\u00a0<\/b><\/h2><p><span style=\"font-weight: 400;\">This is a comparison of Andorra's corporate income tax compared to other countries:\u00a0<\/span><\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">ANDORRA 10%<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">IRELAND, LIECHTENSTEIN, CYPRUS 12,5%<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">SWITZERLAND 18%<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">UNITED KINGDOM 19%<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">SPAIN 25%<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">GERMANY 30%<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">FRANCE 33%<\/span><\/li><\/ul><p><span style=\"font-weight: 400;\">Corporate income tax in Andorra is levied on the income of Andorran legal entities, provided that the company or legal entity is a resident of Andorra. Corporate income tax is applied throughout Andorra (irrespective of the tax residence of the payer). In other words, taxation is compulsory for entities and companies resident in Andorra:<\/span><\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Public entities, public law entities and parapublic entities.\u00a0<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Legal persons\u00a0<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Collective investment undertakings within the scope of application of Law 10\/2008 of 12 June on the Andorran regulation of collective investment undertakings under the law.\u00a0<\/span><\/li><\/ul><p><span style=\"font-weight: 400;\">Entities that meet one of the following conditions are also tax residents of Andorra:\u00a0<\/span><\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">That the <\/span><b>registered office<\/b><span style=\"font-weight: 400;\"> is located in the Principality of Andorra.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">That it was constituted <\/span><b>according to the laws of Andorra<\/b><span style=\"font-weight: 400;\">.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">That his or her <\/span><b>residence and domicile in Andorra,<\/b><span style=\"font-weight: 400;\"> complying with the Andorran commercial legislation in force\u00a0<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">That the <\/span><b>effective centre of management is in the territory of Andorra<\/b><span style=\"font-weight: 400;\">. A company is understood to have its head office in Andorra when it exercises control over the production of the set of businesses or activities in Andorra or the general management of the company.<\/span><\/li><\/ul><h3><b>3.1. Tax base:<\/b><\/h3><p><span style=\"font-weight: 400;\">The tax base is generally calculated by direct assessment. Impairment losses, depreciation, its value according to the purchase price, as well as the production cost and the \"usual\" market value must be taken into account. <\/span><b>Correcting the accounting result obtained in accordance with the legislation and the Andorran General Accounting Plan. <\/b><span style=\"font-weight: 400;\">It should be noted that <\/span><b>negative tax bases are able to offset positive tax bases <\/b><span style=\"font-weight: 400;\">for the tax period ending within the following ten years.\u00a0<\/span><\/p><p>\u00a0<\/p><h3><b>3.2. Rate of taxation:<\/b><\/h3><p><span style=\"font-weight: 400;\">In general, the type of <\/span><b>The corporate income tax rate for taxpayers in Andorra is 10%. <\/b><span style=\"font-weight: 400;\">However, the levy applied to collective investment undertakings regulated by Law 10\/2008, excluding management companies, is 0%.\u00a0<\/span><\/p><p>\u00a0<\/p><h3><b>3.3. Special regimes:<\/b><\/h3><p><span style=\"font-weight: 400;\">In addition to the above, the special regime has to be taken into account. They apply if the relevant entities meet a number of requirements. They act in the determination of the tax base.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">For example, there is a special regime for those entities which <\/span><b>are involved in international trade or carry out their exploitation of intangibles, as well as intra-group investment and financial management companies. <\/b><span style=\"font-weight: 400;\">They can benefit from a reduction of 80% on their tax base<\/span><b> (on their general basis they will pay instead of 10% only 2%).<\/b><\/p><p><b>Cooperative societies <\/b><span style=\"font-weight: 400;\">also have a special regime, <\/span><b>tax holding consolidations<\/b><span style=\"font-weight: 400;\"> and entities with activity in the maintenance or holding of shares in foreign companies (therefore there is a great advantage of being a trader or broker in Andorra). In addition, another special settlement regime is offered for new investments. In order to take into account all the important legal aspects, it is important to have the help of Only Andorra's professionals. We will guide you through the whole process of your tax planning, complying with all the laws in the shortest possible time.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-c4a4d95 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"c4a4d95\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-top-column elementor-element elementor-element-464c674\" data-id=\"464c674\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-d70439e elementor-widget elementor-widget-text-editor\" data-id=\"d70439e\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<h3><b>3.4. Exemptions to avoid double taxation:<\/b><\/h3><p><span style=\"font-weight: 400;\">The following are carried out <\/span><b>exemptions on profit shares of internal and external entities <\/b><span style=\"font-weight: 400;\">(international) to avoid double taxation of the same income. For example, if the company receives profits (dividends or participations) from non-resident tax entities (these are exempt with additional limitations) and from entities resident in Andorra<\/span><\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Andorran tax resident entity, <\/span><b>is not exempt and pays the corresponding corporate income tax.\u00a0<\/b><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The percentage of its shareholding, indirect or direct, equity, capital, voting rights of the tax resident or non-tax resident entity, or assets is <\/span><b>equal to or more than 5 per cent.\u00a0<\/b><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The tax entity is subject to <\/span><b>an income tax with the same characteristics (similar to Andorra's) <\/b><span style=\"font-weight: 400;\">as established by law.\u00a0<\/span><\/li><\/ul><p><span style=\"font-weight: 400;\">It is possible to<\/span><b> receive deductions <\/b><span style=\"font-weight: 400;\">by job creation and also by investment in Andorran assets. The <\/span><b>dividends obtained as individuals from Andorran entities are exempt from tax on the <a href=\"https:\/\/onlyandorra.com\/en\/impuestos-renta-andorra-irpf\/\">IRPF<\/a> always. <\/b><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-top-column elementor-element elementor-element-fc3e5ef\" data-id=\"fc3e5ef\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-13a7dd1 elementor-widget elementor-widget-image\" data-id=\"13a7dd1\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"1024\" height=\"792\" src=\"https:\/\/onlyandorra.com\/wp-content\/uploads\/2021\/10\/andorra-la-vella-vistas-1024x792.jpg\" class=\"attachment-large size-large wp-image-3257\" alt=\"\" srcset=\"https:\/\/onlyandorra.com\/wp-content\/uploads\/2021\/10\/andorra-la-vella-vistas-1024x792.jpg 1024w, https:\/\/onlyandorra.com\/wp-content\/uploads\/2021\/10\/andorra-la-vella-vistas-300x232.jpg 300w, https:\/\/onlyandorra.com\/wp-content\/uploads\/2021\/10\/andorra-la-vella-vistas-768x594.jpg 768w, https:\/\/onlyandorra.com\/wp-content\/uploads\/2021\/10\/andorra-la-vella-vistas-16x12.jpg 16w, https:\/\/onlyandorra.com\/wp-content\/uploads\/2021\/10\/andorra-la-vella-vistas-600x464.jpg 600w, https:\/\/onlyandorra.com\/wp-content\/uploads\/2021\/10\/andorra-la-vella-vistas.jpg 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-04dfca2 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"04dfca2\" data-element_type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-top-column elementor-element elementor-element-68b5654 tel-title\" data-id=\"68b5654\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-e389871 elementor-widget elementor-widget-heading\" data-id=\"e389871\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">CONTACT US<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-2f74314 elementor-widget elementor-widget-shortcode\" data-id=\"2f74314\" data-element_type=\"widget\" data-widget_type=\"shortcode.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-shortcode\">\n<div class=\"wpcf7 no-js\" id=\"wpcf7-f1379-o2\" lang=\"ru-RU\" dir=\"ltr\" data-wpcf7-id=\"1379\">\n<div class=\"screen-reader-response\"><p role=\"status\" aria-live=\"polite\" aria-atomic=\"true\"><\/p> <ul><\/ul><\/div>\n<form action=\"\/en\/wp-json\/wp\/v2\/posts\/3343#wpcf7-f1379-o2\" method=\"post\" class=\"wpcf7-form init\" aria-label=\"\u041a\u043e\u043d\u0442\u0430\u043a\u0442\u043d\u0430\u044f \u0444\u043e\u0440\u043c\u0430\" novalidate=\"novalidate\" data-status=\"init\" data-trp-original-action=\"\/en\/wp-json\/wp\/v2\/posts\/3343#wpcf7-f1379-o2\">\n<fieldset class=\"hidden-fields-container\"><input type=\"hidden\" name=\"_wpcf7\" value=\"1379\" \/><input type=\"hidden\" name=\"_wpcf7_version\" value=\"6.1.1\" \/><input type=\"hidden\" name=\"_wpcf7_locale\" value=\"ru_RU\" \/><input type=\"hidden\" name=\"_wpcf7_unit_tag\" value=\"wpcf7-f1379-o2\" \/><input type=\"hidden\" name=\"_wpcf7_container_post\" value=\"0\" \/><input type=\"hidden\" name=\"_wpcf7_posted_data_hash\" value=\"\" \/>\n<\/fieldset>\n<p><span class=\"wpcf7-form-control-wrap\" data-name=\"name1\"><input size=\"40\" maxlength=\"400\" class=\"wpcf7-form-control wpcf7-text wpcf7-validates-as-required\" aria-required=\"true\" aria-invalid=\"false\" placeholder=\"Name\" value=\"\" type=\"text\" name=\"name1\" \/><\/span>\n<\/p>\n<p><span class=\"wpcf7-form-control-wrap\" data-name=\"tel\"><input size=\"40\" maxlength=\"400\" class=\"wpcf7-form-control wpcf7-tel wpcf7-validates-as-required wpcf7-text wpcf7-validates-as-tel\" aria-required=\"true\" aria-invalid=\"false\" placeholder=\"Telephone\" value=\"\" type=\"tel\" name=\"tel\" \/><\/span>\n<\/p>\n<p><input class=\"wpcf7-form-control wpcf7-submit has-spinner\" type=\"submit\" value=\"SEND\" \/>\n<\/p><div class=\"wpcf7-response-output\" aria-hidden=\"true\"><\/div>\n<input type=\"hidden\" name=\"trp-form-language\" value=\"en\"\/><\/form>\n<\/div>\n<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-top-column elementor-element elementor-element-f572167 tel-title\" data-id=\"f572167\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-74dad95 elementor-widget elementor-widget-heading\" data-id=\"74dad95\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Our Telephone:<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-99fcf83 elementor-widget elementor-widget-text-editor\" data-id=\"99fcf83\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<a href=\"tel:+376 87 03 01\">+376 87 03 01<\/a>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-bb9200c elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"bb9200c\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-top-column elementor-element elementor-element-35b1e13\" data-id=\"35b1e13\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-82d1526 elementor-widget elementor-widget-image-gallery\" data-id=\"82d1526\" data-element_type=\"widget\" data-widget_type=\"image-gallery.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-image-gallery\">\n\t\t\t<div id='gallery-1' class='gallery galleryid-3343 gallery-columns-1 gallery-size-large'><figure class='gallery-item'>\n\t\t\t<div class='gallery-icon landscape'>\n\t\t\t\t<a data-elementor-open-lightbox=\"yes\" data-elementor-lightbox-slideshow=\"82d1526\" data-elementor-lightbox-title=\"los impuestos de andorra\" data-e-action-hash=\"#elementor-action%3Aaction%3Dlightbox%26settings%3DeyJpZCI6MzIzOCwidXJsIjoiaHR0cHM6XC9cL29ubHlhbmRvcnJhLmNvbVwvd3AtY29udGVudFwvdXBsb2Fkc1wvMjAyMVwvMDhcL2xvcy1pbXB1ZXN0b3MtZGUtYW5kb3JyYS5qcGciLCJzbGlkZXNob3ciOiI4MmQxNTI2In0%3D\" href='https:\/\/onlyandorra.com\/wp-content\/uploads\/2021\/08\/los-impuestos-de-andorra.jpg'><img decoding=\"async\" width=\"1024\" height=\"509\" src=\"https:\/\/onlyandorra.com\/wp-content\/uploads\/2021\/08\/los-impuestos-de-andorra-1024x509.jpg\" class=\"attachment-large size-large\" alt=\"\" srcset=\"https:\/\/onlyandorra.com\/wp-content\/uploads\/2021\/08\/los-impuestos-de-andorra-1024x509.jpg 1024w, https:\/\/onlyandorra.com\/wp-content\/uploads\/2021\/08\/los-impuestos-de-andorra-300x149.jpg 300w, https:\/\/onlyandorra.com\/wp-content\/uploads\/2021\/08\/los-impuestos-de-andorra-768x382.jpg 768w, https:\/\/onlyandorra.com\/wp-content\/uploads\/2021\/08\/los-impuestos-de-andorra-18x9.jpg 18w, https:\/\/onlyandorra.com\/wp-content\/uploads\/2021\/08\/los-impuestos-de-andorra-600x298.jpg 600w, https:\/\/onlyandorra.com\/wp-content\/uploads\/2021\/08\/los-impuestos-de-andorra.jpg 1280w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a>\n\t\t\t<\/div><\/figure><figure class='gallery-item'>\n\t\t\t<div class='gallery-icon landscape'>\n\t\t\t\t<a data-elementor-open-lightbox=\"yes\" data-elementor-lightbox-slideshow=\"82d1526\" data-elementor-lightbox-title=\"Andorra parai\u0301so\" data-e-action-hash=\"#elementor-action%3Aaction%3Dlightbox%26settings%3DeyJpZCI6MzI0OSwidXJsIjoiaHR0cHM6XC9cL29ubHlhbmRvcnJhLmNvbVwvd3AtY29udGVudFwvdXBsb2Fkc1wvMjAyMVwvMTBcL2FuZG9ycmEtcGFyYWlcdTAzMDFzby5qcGciLCJzbGlkZXNob3ciOiI4MmQxNTI2In0%3D\" href='https:\/\/onlyandorra.com\/wp-content\/uploads\/2021\/10\/andorra-para\u00edso.jpg'><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"678\" src=\"https:\/\/onlyandorra.com\/wp-content\/uploads\/2021\/10\/andorra-parai\u0301so-1024x678.jpg\" class=\"attachment-large size-large\" alt=\"\" srcset=\"https:\/\/onlyandorra.com\/wp-content\/uploads\/2021\/10\/andorra-parai\u0301so-1024x678.jpg 1024w, https:\/\/onlyandorra.com\/wp-content\/uploads\/2021\/10\/andorra-parai\u0301so-300x199.jpg 300w, https:\/\/onlyandorra.com\/wp-content\/uploads\/2021\/10\/andorra-parai\u0301so-768x509.jpg 768w, https:\/\/onlyandorra.com\/wp-content\/uploads\/2021\/10\/andorra-parai\u0301so-18x12.jpg 18w, https:\/\/onlyandorra.com\/wp-content\/uploads\/2021\/10\/andorra-parai\u0301so-600x398.jpg 600w, https:\/\/onlyandorra.com\/wp-content\/uploads\/2021\/10\/andorra-parai\u0301so.jpg 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a>\n\t\t\t<\/div><\/figure><figure class='gallery-item'>\n\t\t\t<div class='gallery-icon landscape'>\n\t\t\t\t<a data-elementor-open-lightbox=\"yes\" data-elementor-lightbox-slideshow=\"82d1526\" data-elementor-lightbox-title=\"Centro comercial Andorra\" data-e-action-hash=\"#elementor-action%3Aaction%3Dlightbox%26settings%3DeyJpZCI6MzMzMCwidXJsIjoiaHR0cHM6XC9cL29ubHlhbmRvcnJhLmNvbVwvd3AtY29udGVudFwvdXBsb2Fkc1wvMjAyMVwvMTBcL2NlbnRyby1jb21lcmNpYWwtYW5kb3JyYS5qcGciLCJzbGlkZXNob3ciOiI4MmQxNTI2In0%3D\" href='https:\/\/onlyandorra.com\/wp-content\/uploads\/2021\/10\/centro-comercial-andorra.jpg'><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"706\" src=\"https:\/\/onlyandorra.com\/wp-content\/uploads\/2021\/10\/centro-comercial-andorra-1024x706.jpg\" class=\"attachment-large size-large\" alt=\"\" srcset=\"https:\/\/onlyandorra.com\/wp-content\/uploads\/2021\/10\/centro-comercial-andorra-1024x706.jpg 1024w, https:\/\/onlyandorra.com\/wp-content\/uploads\/2021\/10\/centro-comercial-andorra-300x207.jpg 300w, https:\/\/onlyandorra.com\/wp-content\/uploads\/2021\/10\/centro-comercial-andorra-768x530.jpg 768w, https:\/\/onlyandorra.com\/wp-content\/uploads\/2021\/10\/centro-comercial-andorra-18x12.jpg 18w, https:\/\/onlyandorra.com\/wp-content\/uploads\/2021\/10\/centro-comercial-andorra-600x414.jpg 600w, https:\/\/onlyandorra.com\/wp-content\/uploads\/2021\/10\/centro-comercial-andorra.jpg 1160w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a>\n\t\t\t<\/div><\/figure>\n\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-top-column elementor-element elementor-element-9c1e7e6\" data-id=\"9c1e7e6\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-af33983 elementor-widget elementor-widget-text-editor\" data-id=\"af33983\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<h3><b>3.5. Tax period and accrual<\/b><\/h3><p><b>The tax period is the same as the entity's financial year, no longer than 12 months. <\/b><span style=\"font-weight: 400;\">If it is longer, the period ends at the end of the year. In addition, if the company is extinguished, its financial year ends (it is cancelled by registration) and\/or when a change of the legal form of the company takes place, thus affecting this tax.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">The accrual of the tax is carried out by <\/span><b>the last day of the tax period<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p><p>\u00a0<\/p><h3><b>3.6. Payments on account<\/b><\/h3><p><span style=\"font-weight: 400;\">Taxpayers must carry out <\/span><b>in September <\/b><span style=\"font-weight: 400;\">their corresponding payment to settle the tax period. By calculating the <\/span><b>50% on its liquidation quota of the previous financial year<\/b><span style=\"font-weight: 400;\">. The payment on account is considered to be a tax debt, <\/span><b>that payment is deducted from the liquidation quota<\/b><span style=\"font-weight: 400;\"> to be paid after the end of the tax period. If the differential tax liability is negative, the relevant ministry will refund the excess.\u00a0<\/span><\/p><h3>\u00a0<\/h3><h3><b>3.7. Further interesting reductions<\/b><\/h3><p><span style=\"font-weight: 400;\">In addition to the above, we would like to mention<\/span><b> two reductions for new business<\/b><span style=\"font-weight: 400;\"> to be taken into account:\u00a0<\/span><\/p><ol><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">In the first year of application of the tax, taxpayers benefit from a <\/span><b>50% reduction of the liquidation quota<\/b><span style=\"font-weight: 400;\">This means that you will be taxed at 5% applied to your profits (taxable income).\u00a0\u00a0<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Benefiting micro-enterprises and SMEs, taxpayers that are set up as<\/span><b> new entrepreneurs <\/b><span style=\"font-weight: 400;\">of a professional or business activity, with<\/span><b> profits less than \u20ac100.000,00<\/b><span style=\"font-weight: 400;\">The levy applied to them during the period from <\/span><b>First 3 years of activity <\/b><span style=\"font-weight: 400;\">en:\u00a0<\/span><\/li><\/ol><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">5% for taxable income between \u20ac0 and \u20ac50,000.00.<\/span><\/li><\/ul><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">10% for the remaining tax base. <\/span><\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-dbdb0e7 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"dbdb0e7\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-9acf3ce\" data-id=\"9acf3ce\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-768d489 elementor-widget elementor-widget-text-editor\" data-id=\"768d489\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<h2><b>4. Summary and conclusion on IS in Andorra:<\/b><\/h2><p><span style=\"font-weight: 400;\">Andorra offers very interesting conditions for corporate taxation, the rate of<\/span><b> The general rule is 10%, <\/b><span style=\"font-weight: 400;\">but can be applied <\/span><b>different deductions<\/b><span style=\"font-weight: 400;\"> depending on the case and if certain conditions are met<\/span><b> requirements and conditions established by law<\/b><span style=\"font-weight: 400;\"> both in Andorra and in the country of origin.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">In order to take all these aspects into account, it is advisable to have the support of good professionals who can guide you in legal, tax and accounting services. At <\/span><b>Only Andorra will find the best experts in the sector<\/b><span style=\"font-weight: 400;\"> whether to open a company in Andorra, to open a branch of your existing company in your country of origin, to establish your residence, etc.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">Each case is unique and we therefore ask you to contact us to discuss your case first hand.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>","protected":false},"excerpt":{"rendered":"<p>As we had previously mentioned in another article about taxes in Andorra and how to open a company in the territory of Andorra, the corporate income tax (IS) is relatively new in Andorra since it came into force in 2012.  The IS is a light tax that was passed in order to be able to open a [...]<\/p>","protected":false},"author":1,"featured_media":3325,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[53],"tags":[64],"class_list":["post-3343","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-andorra","tag-turizm"],"_links":{"self":[{"href":"https:\/\/onlyandorra.com\/en\/wp-json\/wp\/v2\/posts\/3343","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/onlyandorra.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/onlyandorra.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/onlyandorra.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/onlyandorra.com\/en\/wp-json\/wp\/v2\/comments?post=3343"}],"version-history":[{"count":38,"href":"https:\/\/onlyandorra.com\/en\/wp-json\/wp\/v2\/posts\/3343\/revisions"}],"predecessor-version":[{"id":3382,"href":"https:\/\/onlyandorra.com\/en\/wp-json\/wp\/v2\/posts\/3343\/revisions\/3382"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/onlyandorra.com\/en\/wp-json\/wp\/v2\/media\/3325"}],"wp:attachment":[{"href":"https:\/\/onlyandorra.com\/en\/wp-json\/wp\/v2\/media?parent=3343"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/onlyandorra.com\/en\/wp-json\/wp\/v2\/categories?post=3343"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/onlyandorra.com\/en\/wp-json\/wp\/v2\/tags?post=3343"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}