- January 17, 2017
- Posted by: andorrasolutions
- Category: Finance EU
Andorra and the EU exchange tax information from 1 January 2017 automatically, although the first communication will be made in 2018. In this way the agreement signed in February 2016 between Andorra and Brussels is applied with the aim of preventing tax fraud. It is also a clear message for potential evaders that hiding income or values in other countries is becoming more difficult. Andorra had previously provided this type of tax information on request but is now joining the annual automatic international exchange agreement. The operation will not be complex as both banks and managers of Andorran investments are obliged to know the fiscal residence of their clients. There will be an adjustment period to obtain the necessary data from accounts prior to January 1, 2017.
Andorra will have substantial advantages by committing to the international exchange. This step opens the door to signing more double tax treaties which will allow companies and individuals resident in Andorra to trade beyond Andorra and declare their income in Andorra without substantial withholding taxes.