Andorra's Marti Defends Tax Reforms
by Ulrika Lomas, Lowtax.net, Brussels
14 November, 2013
Andorran Prime Minister Antoni Marti has defended the Government's economic roadmap, in particular its decision to reform taxation.
During a recent Family Business Forum in Andorra, Prime Minister Marti stressed that attracting and promoting talent in Andorra, a central theme of the Forum, requires two key ingredients, notably legal certainty and a favorable fiscal environment for entrepreneurship and for business.
Prime Minister Marti underscored the need for a "framework that allows our entrepreneurs and professionals to compete in a global world." Marti insisted that Andorra's new tax model, with indirect taxation (IGI) grouped into a single general tax rate of 4.5 percent, a direct tax on corporate profits of around 10 percent, and future income tax, coupled with double taxation agreements, are the two axes on which legal certainty is based.
To generate and attract talent, ultimately the Government must insist on the path of openness and standardization, Marti stressed.
Concluding, Marti underlined the importance of guaranteeing "good management" by law, notably via the existence of a debt brake rule to impose a maximum deficit on the public sector finances. While acknowledging that the Government's obligation is "to accept criticism," Prime Minister Marti nevertheless emphasized that all decisions are uncertain in a world in crisis, warning that "the worst decision is not to take any decision."
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