Andorra's corporate income tax rate of 10% and its favorable tax system have made it an attractive destination for businesses seeking a low-tax jurisdiction. Alongside the corporate income tax, businesses operating in Andorra should also be aware of other taxes such as VAT, personal income tax, social security contributions, property tax, municipal taxes, and any specific taxes imposed by local authorities. It is always recommended to consult with a tax professional or refer to the official Andorran tax authority website for the latest tax regulations and requirements.
Andorra operates on a territorial tax system, whereby only income derived from activities within the country is subject to taxation. As of the knowledge cutoff date in September 2021, the corporate income tax rate in Andorra is a flat 10%. This rate applies to both resident and non-resident companies engaging in commercial, industrial, or professional activities in the principality.
For detailed and accurate information on business taxes, it is recommended to visit the official website of the Andorran tax authority. The website provides comprehensive information, forms, guidelines, and contact details for any tax-related inquiries.
Andorran Tax Authority Website: Official Andorran Tax Authority Website