Yesterday the Minister for Finances of Andorra Jordi Cinca and his colleague from Luxembourg Pierre Gramegna signed the agreement on double taxation exemption. This is the second agreement on double taxation after the one signed with France. Jordi Cinca emphasized the importance of such agreements for Andorra from the point of view of problems related to tax fiddle and tax payments.
In accordance to his words, the agreement on double taxation exemption is the basis for economic diversification, the inducement of foreign capital and internationalizing of the enterprises of the country. Such agreements also stimulate tax reforms and their further implementation and maintenance. “We should stimulate signing analogue agreements with all EU countries that have established economic and financial relations with us”—he noted.
The agreement consists of 29 articles, it is composed on the basis of standard agreements signed within the bounds of OECD, though complemented with a number of details. “The agreement contains the peculiarities, favorable for both sides”—stated the Minister for Finances.
The negotiations on the exemption of double taxation with Luxembourg started in November of 2011.
Jordi Cinca pointed out that currently the Government actively tackles the issues of signing analogue agreement with Spain and probably such agreement can be signed within the proximate months.