Taxes in Andorra, Taxation in Andorra, tax system in Andorra
Presentation of the tax system in Andorra:
The Law of 19 December 1996 governs the Andorran Comma fiscal system establishes the general framework of Taxes and organises That the sectors are subject to tax. Although this law establishes the framework for the Implementation of tax related legislation, it does not define the Different categories of Taxes Existing in the Principality of Andorra. Law of 19 December 1996, which governs the tax system of Andorra establishes a general framework for taxation and organizes sectors subject to tax. Although the law establishes a framework for the implementation of the provisions relating to tax, it does not define the various categories of existing taxes in the Principality of Andorra.
This law stipulates That the Different categories of National Taxes in Andorra can only be ESTABLISHED by Means of legislation enacted by the Conseil Général (the Andorran Parliament). This law provides that the various categories of taxes in Andorra can only be established by legislation enacted by the Conseil Général (the Parliament of Andorra).
On the other hand, regional Bodies, "Municipalities" are Competent to Develop and Regulate Taxes at local level (Local Taxes). On the other hand, regional authorities, "City" shall have jurisdiction to regulate taxation and development at the local level (local taxes).
At the current time in the Principality of Andorra, there is no system of Direct Taxation on the income of natural persons, on trading profits or on assets. At the moment, in the Principality of Andorra has no system of direct taxes on personal income from business profits or assets.
However, the government is planning to Introduce and inheritance tax, an Indirect tax on services was provided by as well as an ecotax is protect the environment. However, the government plans to introduce inheritance tax, indirect tax, and tax services for the protection of ecological environment.
The Andorran system is based on Indirect Taxes Which Represent Approximately 12.6% of the Gross National Product. Andorra to the system based on indirect taxes, which represent approximately 12.6% of Gross Domestic Product.
2) The scope of National Taxes: 2) In respect of taxes:
. The Law on the Indirect Taxation of Goods (IMI) establishes a general system of Indirect Taxation on the production, development and importation of all products (tangible property) located in Andorra, That is to say for goods included in chapters 1 to 97 of the harmonised Community system. . Law on taxation of intermediate goods (IMI) establishes a general system of indirect taxation on the production, development and import of all products (tangible goods), established in Andorra, that is, goods in Chapters 1 to 97 of the harmonized Community system. The law stipulates four Comma Apply Different rates on the value of goods. The law provides four different courses, which apply the value of the goods. These rates vary from 1 to 12% According to the products, the Majority of products are taxed at 4%. These rates vary from 1 to 12% depending on the products, most products are taxable at 4%.
In Addition to this amount, there are other Taxes According to the type of products in question, dry as an excise tax, Comma Applies solely to agricultural products. In addition to this amount, the taxes are different depending on the type of products, such as excise tax, which applies only to agricultural products.
. The Law on Excise Taxes of 30 December 1985 establishes an excise tax Comma, Since the Trade Agreement signed in 1990 with the European Community, Applies only to the importation of agricultural products Comma are included in chapters 1 to 24 of the harmonised system. . Taxes Tax Act of 30 December 1985 lays down the excise duty on trade signed in 1990 with the European Community shall apply only to imports of agricultural products, which are contained in Chapters 1 to 24 of the Harmonized System. The rate of this tax varies from 2 to 60% According to the goods. The tax rate ranges from 2 to 60% depending on the commodity.
. There are other government imposed Taxes Apply to Comma. There are other government imposed taxes, which apply to:
- Electricity and telephone bills - Electricity and Telephone
- Vehicle owners - Owners of vehicles
- Individuals who want to register a brand. - People who want to register a brand.
. . Moreover, people Carrying on a business activity are subject to the payment of a flat-rate tax, payable When They register on the Trade Register, and then subsequently Each calendar year between1 st April and 30 June. Moreover, the self-employed persons are subject to advance payment of tax, payable at registration in the commercial register and then each calendar year between1 st April and 30 June.
This tax Concerns three professional categories: occupational concerns three tax categories:
- People Owning a Société Anonyme (a Public Limited Company) or a Société a responsabilité limitée (a Private Limited Company) registered on the Corporate Register - People with Société Anonyme (joint stock company) or Société a responsabilité limitée (Private Limited Company) Company registered in the registry,
- Carrying people on a business activity registered on the Trade Register - Businesses registered in the commercial register,
- Authorised people to Practise as a member of one of the professions. - Persons entitled to act as a member of one of the professions.
People who are registered on the Corporate Register, must pay a tax of 330 euros at the time of registration and subsequently a tax of 670 euros every calendar year in the case of a Private Limited Company. People who are registered in the registry, companies must pay a tax of 330 euro at the time of registration and tax of 670 euros per calendar year for a company with limited liability.
In the case of a Public Limited Company, the tax at the time of registration is 495 euros and the Annual tax is 735 euros. In the case of limited company, tax at the time of registration is 495 euro and an annual tax is 735 euros.
Taxes Other Than These, people Wanting to create a company must pay what corresponds to a Registration Tax. Other than those taxes, people who want to create a company must pay the corresponding registration tax.
The amount of this tax is 661 euros for a Public Limited Company and 463 euros for a Private Limited Company. The amount of this tax is 661 euros per company limited by shares and 463 euros for a company with limited liability.
Tradespeople registered on the Register of Commerce must pay a tax of 170 euros annually for every registered business premise. Traders registered in the Register of Commerce must pay a tax of 170 euros per year to each registered business establishment.
The professions must pay a tax of 330 euros annually, from the third year Following Their registration as a member of one of the professions. Professions have to pay a tax of 330 euros per year from the third year following their registration as a member of one of the professions.
. The Law on legal Taxes of 20 December 1995, ESTABLISHED and the system of Taxation by way of excise stamps for Court Proceedings. . Legal Tax Act of 20 December 1995, established a system of taxation in respect of excise stamps for legal proceedings.
The value of These excise stamps varies According to the Estimated amount of the case Brought before the Competent Court. The values of these characters duty varies according to the estimated amount in a case brought before the competent court.
. . Finally, the Law of 28 November 1996 Authorised Taxes bingo halls. Finally, the law of 28 November 1996 authorized the taxes bingo halls.
. The law on transfers of assets: (Applicable to assets located in Andorra). Act on transfers of assets: (for the assets located in Andorra)
The Law of 29 December 2000 regulates Indirect tax imposed on transfers of real estate inter vivos, as well as on the creation or transfer of rights in rem on assets located in Andorra. Act of 29 December 2000 regulates the indirect taxes levied on real estate acquisitions, inter vivos, as well as the creation or transfer of rights in rem over assets located in Andorra.
As regards local Taxes, They depend on the municipality in Which the assets are located. With regard to local taxes, they depend on the municipality in which assets reside.
There is no Inheritance Tax in Andorra. There is no inheritance tax in Andorra.
However, assets located outside of the Principality of Andorra and Belonging to Foreigners who are Residents of Andorra will be subject to the rules of the countries in dry Comma assets are located. However, assets outside the Principality of Andorra and belonging to foreigners who are residents of Andorra is subject to the rules of the country where the assets are located.
This law Also Applies To: This Law shall also apply to:
. . Interests and participating shares in trading companies, the creation or transfer of rights in rem over These shares or participating Interests if at least 50% of the assets of These companies are Composed of personal property or rights in rem over real estate. stocks and shares in companies, trade creation or transfer of property rights on these shares if at least 50% of the assets of these companies consist of personal property or rights in rem.
. . Contractual Commitments or Contracts These options concern if real estate or rights in rem over real estate. contractual obligations or options, if the contract relates to property or rights in rem.
In Addition, in the case of a cancellation of a contract with the agreement of Both parties, this cancellation is Considered as a new transfer and consultants therefore is subject to tax. Moreover, in case of withdrawal with the consent of both parties, the appeal is considered a new transfer, and therefore taxable.
Transfers and the creation of rights in rem over real estate are exempt from tax When They Are Made in Favour of: Transfers and the establishment of rights in rem in immovable property are exempt from tax if they are made for:
. The Conseil General (Parliament), the Government, Municipalities (town-halls) and Quarts (county-towns). Conseil General (parliament), the government, municipalities (cities halls) and Quarts (county, town)
. Spouses or the communal estate in Favour of the other Spouse, or as part of the Dissolution or Liquidation of the marriage. Spouses or municipal property to the other spouse, or as part of a dissolution or liquidation of marriage
. . Between Spouses and natural persons Having direct blood ties as forbears and Descendants and / or lateral ties up to the third degree, spouses and individuals, as the blood ties of direct ancestors and descendants, and / or lateral ties to the third degree
. shareholders of a company or companies f Between the shareholders have direct blood ties or forbears as Descendants and / or lateral ties up to the third degree. Shareholders of the company or companies if the shareholders of the direct blood ties as the ancestors or descendants, and / or lateral ties to the third degree
. . Also and for the transfer and creation of real rights and to GUARANTEE the transfer and creation of real guarantees for the
. . Government tax: 1.25% Government Tax: 1.25%
. . Local tax: the minimum rate is 0.50% and the maximum rate is 1.25% Local tax: the minimum rate is 0.50% and the maximum rate is 1.25%
The tax is paid will be consultants therefore be equivalent to a maximum of 2.50% of the value of the Transferred Assets. The tax payable will therefore be tantamount to a maximum of 2.50% of assets.
3) Local Taxes: 3) Local Taxes:
The local Authorities, the "Municipalities", of Each parish are Authorised by the Parliament to "apply a general tax, and is establishe Also, administer and apply additional Taxes. Local authorities, "City" in each parish, have been approved by Parliament, the application of a general tax, and also to establish, manage and use the additional taxes.
Even if tax regulations are not unified Between the Different Parishes, It Is Possible is the most important IDENTIFY Taxes in This Regard: Even if the tax laws are not unified among the different parishes, it is possible to identify the most important taxes in connection with this:
1st Service Taxes: Taxes on hygiene, lighting services, drinking water, urban first Contribution Service tax: the tax on hygiene, lighting services, drinking water, the contribution of cities, etc.. etc.
2nd Permits and Taxes on planning permission, changes of corporate names and addresses of registration, installation of signs. 2nd Taxes permits and building permits, changes in names of companies and registration addresses, editing marks.
3rd Taxes on commercial and industrial activities, Prime Headline, the ownership or acquisition of real estate, transfers of property and assets. 3rd Taxes on commercial and industrial rents, property or real estate, transfers of assets and property.