After signing the agreement on double taxation exemption (CDI) between Andorra and other countries, huge perspectives will be opened for Andorran companies that decide to work abroad. First of all it will touch upon the countries that work with new technologies. Such opinion was expressed in the joint statement made by the President of Tax and Finances Consultants Association, lawyer Jean-Michel Rascagneres and the partner of financial and juridical company Cuatrecasas, the consultant in CDI issues, lawyer Joan Jortal.
The experts consider that the agreement on double taxation exemption is a practical tool for further economic development of the countries that signed this agreement. Having signed CDI agreement, the companies of Andorra get rid of the necessity to deal with tax systems of the countries, where they plan to work and develop.
The tax system of Andorra nowadays is much more attractive in comparison to other European countries. There are no personal taxes in reference to natural persons in the Principality. The income tax will be imposed from January 1, 2015 and will not exceed the limit of 10%. The corporate tax in Andorra makes up 2% (in case the company was registered on the territory of Andorra, but implements its activity beyond the borders of the Principality) or 10% (in case the company implements its activity on the territory of Andorra).
It should be recalled that by now Andorra has signed CDI agreements with France and Luxembourg (though the agreement with France hasn’t been ratified yet by the Parliament of the Republic, it is expected to be done by the mid of 2015). The experts consider perspective signing analogue CDI agreements with Latin America countries (Mexico, Brazil and Venezuela) as well as with the countries of South-Western Asia (Thailand and South Korea).
The Minister for Foreign Affairs of Andorra Gilbert Saboya Sunyé confirmed that additionally to negotiations with Spain and Portugal, the contact with other countries beyond the borders of EU was established (in accordance to the forecasts, the final stage of negotiations between Andorra and Spain will be concluded by the end of 2014). Among other negotiators—a number of Latin America countries together with the countries of Asia and Middle East. The experts state that signing CDI agreements with these countries will be favorable for the development of financial industry of Andorra as far as the banks of the Principality have got a whole set of tools popular with both natural and legal persons of the abovementioned countries.
Currently the negotiations on CDI with the UK are in progress. In spite of existing difficulties in negotiations on this issues, signing of such agreement may widely open the door for Andorra to the USA, considers the Minister.