Andorra Eyes Individual Income Tax In 2015
by Ulrika Lomas, Lowtax.net, Brussels
11 December, 2013
Andorran Prime Minister Antoni Marti has confirmed that the new tax imposed on individual income (IRPF) is due to apply in Andorra in 2015.
Prime Minister Marti highlighted the fact that a number of reforms have now been submitted to parliament, that "nobody" wanted to implement for many years, including plans to reform the Andorran Health and Social Security Administration (CASS), the basic law of taxation, and plans to promulgate the IRPF tax.
Enacting the tax on individual income will achieve moderate taxation while at the same time allowing the signing of bilateral double taxation agreements (DTAs) to take place, Prime Minister Marti emphasized, announcing that the IRPF tax will enter into force in Andorra on January 1, 2015.
Furthermore, the Government intends to submit to parliament shortly plans to modify the general indirect tax (IGI) levied on banks. In so doing, the Government will ensure that all of the legislation is adopted in parallel and together, if possible during January and February.
Defending the decision to amend the law on the IGI bank tax, Prime Minister Marti insisted that it is the Government's "moral obligation" and a question of "justice" to ensure that the banking system contributes to the public finances, in the same way that the sector provided its indirect service tax (ISI) contribution.
Conceding that mistakes had indeed been made in the transition from ISI to IGI, Prime Minister Marti underscored the Government's commitment to correcting those errors, to recover around EUR10m (USD13.7m) in the next few years.
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