Corporation Tax Taxation

It is regulated in Decree Legislatiu of 04/29/2015, and published in the text refos of Llei 95/2010, of the 29th of December, of l'impost on societats.

Criteria for determining taxation

Legal persons, IIC and public entities and public law entitles that:

  • They have been constituted according to Andorran regulations
  • Have a social office in Andorra
  • Have the effective management headquarters in Andorra

Tax Rate

The general tax rate is 10%, except for SICAV and Funds 0%

International double Taxation

International double taxation is eliminated by the economic exemption method regarding dividends and capital gains generated by the participation in subsidiaries (art. 20 LIS) provided that:

  1. The non-resident company is taxed by a corporation tax similar to the Andorran Corporation Tax
  2. The participation percentage is at least 5% and that said participation is held continuously for at least one year.

There is a deduction for double international taxation (art. 43 LIS) by which the Andorran company may deduct the lesser of the effective tax amounts. In case of agreement, it will be necessary to see the particularities of each one.