This is the main tax applied to companies with their fiscal headquarters in Andorra. It is calculated on the profits obtained and its rate is 10%.
For those with tax residence in Andorra, dividends and profit sharing are exempt from this tax. SICAVs and investment funds are also exempt.
Corporate tax in Andorra is very competitive if you compare with other jurisdictions. Corporate tax in Andorra may be reduced to 2% for special tax regimes such as the patent box / special tax regime on managing intellectual property sourced in Andorra. You can find more information about the special tax regime in Andorra reading our article.
How is corporate tax settled in Andorra?
A contribution of 50% is made during the current year based on the positive results of the previous year and the following year, the final settlement is made with the data of the year. In this way, if the previous year’s profit requires a 10% rate to be applied, half the rate is brought forward in September, that is, 5% applied to the previous year’s profit. The following year, in July, you proceed to the final settlement calculated with the final data and discounting the previous year’s advance.
If you need more information about Corporate Tax in Andorra or a personalized advice, you can make an appointment with our consultants.