Taxation in Andorra
In 2013, Andorra announced plans to impose an income tax in response to pressure from the European Union.[1] The tax was introduced in 2015, at a flat rate of 10%.[2]
Employees pay social security taxes at rates of 5-9% on their salaries; employers pay social security taxes of 13% on their employees' salaries. In October 1991, a form of value-added tax was introduced at a general rate of 4% on most goods and at higher rates of 8% and 12%, respectively, for special goods and for deemed luxury goods. There are also taxes on the import of certain goods. The 1992 budget law introduced a registration tax on certain activities, to provide 8.6% of government revenues, as well as a tax on electricity consumption and telephone services at a rate of 10%, to contribute 1.6% of government revenues.
References
- ↑ Andorra bows to EU pressure to introduce income tax, The Telegraph, June 2, 2013.
- ↑ Individual income tax, Government of Andorra. (Catalan)
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