Adapt your business model to today’s challenges
In today’s global economy we compete not only with quality and pricing but also with the taxation on our business activity. With more global competition and increasing pressure on margins in many sectors it is worth to not only reconsider your cost structure, but also the tax burden of your business model. Many types of different taxes might be affecting you at different steps of the supply chain. Starting from VAT (Value Added or Sales Tax) for your end consumers over duties and customs on your trading activities to corporate taxation of your profits. Reducing and optimizing your tax burden to the reality of your business model will help you to enhance your margins and ultimately support the growth and expansion of your business. This is where tax planning with an Andorran corporate entity will be the key.
It may be a new business line, a new market to expand to or a new model of operating your business that will open up new opportunities or restructuring your current business with a newly formed entity in Andorra. But also for those starting up new activities and companies especially with intangibles such as in the technological sector might find Andorra a suitable location. Each business model is a different case and there is no off the shelve solution. That is why we carefully study the following to make a first assessment of your case:
– current business model (type of product or service)
– current jurisdiction
– your current tax base
– your plans for the future
– ownership structure
We will then introduce you to the Andorran tax jurisdiction and how your business or personal tax planning might fit. Andorra has gone through tremendous changes in the past five years to move away from a “tax haven” status to a transparent, modern and low tax jurisdiction. Those changes are continuing and will position Andorra among other jurisdictions such as Switzerland, Luxembourg or Cyprus. If you need more information about substance requirements in Andorra, feel free to contact us and we will be happy to get you to speak with one of our tax planning professionals.