You can give a company a loan?

A society can grant a loan economy who wish prior approval of the Board of Directors or the sole shareholder.

The return of the loan must be subject to an interest rate and a deferral. The income obtained in the financial loan taxed in accordance with the Law on Income Tax.

The transactions between taxpayers and tax non-resident persons or entities involved are valued at their fair market value. The taxpayers who carry out related party transactions may request the assistance of the Ministry of Finance to determine and set the fair market value of these operations.

Reference is made to related persons when the same persons or entities engaged directly or indirectly in the management, control or capital of both entities , such as:

• An entity and its members or participants
• An entity and its directors or managers
• An entity and family (up to third degree) partners, shareholders, directors or managers
• An entity and another owned by the first at least 25% of the capital or equity
• Two companies belonging to the same group 
• Two entities in which the same members, participants or relatives involved, directly or indirectly, at least 25% of the share capital or equity 
• A company tax resident in Andorra and its permanent establishments abroad
• An entitat not tax resident in Andorra and its permanent establishments in Andorra