CDI between Andorra and Luxembourg to avoid double taxation and prevent income tax evasion

On 23 December 2015 was published in the BOPA Agreement between the Principality of Andorra and the Duchy of Luxembourg to avoid double taxation with respect to taxes on income and prevent tax evasion . The implementation of this agreement, which entered into force on 7 March once ratified by both states necessaris- internal compliance procedures will not be effective until 1 January 2017.

Depending on the type of income will change the taxation exists today regarding deductions must practice employers Andorra by Tax Income of non-residents (non-residents) , as well as deductions that can support them by operations in Luxembourg.

Thus, in general, the revenue from the provision of services will be taxed only in the state of residence of the service provider. Therefore, remove the obligation to practice non-residents withholding by the payer of income.

Please find attached a table summarizing the main tax implications depending on the type of income:

This box contains the main implications in general, without taking into account the peculiarities that may exist in each case. In the case of finding yourself in any of these situations, you can get in touch with the team IS21 to receive the necessary advice.