Andorra approved the bill amending the law on income tax

In late June, the Andorran government approved the draft law on amending the Law on Corporate Income Tax (IS) , in order to comply with the measures BEPS , promoted by the OECD and the code of Conduct of the European Union to combat harmful tax practices.

As explained by the head of finance of Andorra, Jordi Cinca, accompanied by the Director General of Taxation and Borders Albert Hinojosa, the Bill amends two special schemes and two other unlinking the current IS, a changes will be implemented gradually by 2020.

What are the main changes?

First, the text amends the special corporate exploitation of intangibles - patent box - limiting it only to patent computer programs and the Principality of Andorra. Secondly, the Bill amends the special scheme for companies involved in foreign companies - Holding - which from now sets a minimum level of taxation of the companies involved and removes the option to deduct losses.

 

On the other hand, has repealed the special international trade , known as trading, and the special regime of financial investment management companies and intra-group , focused on non-residents.

The bill also includes a change to meet another BEPS measures, which refers to the information for each country . So those expected business tax residents in Andorra and billed at least 750 million euros , have to report their income level, number of employees, the share capital of the earnings and assets tangible in order to exchange this information with the jurisdictions of the countries in which the company has subsidiaries.