How is corporation tax paid in Andorra?
In Andorra, unlike other countries where this tax is paid quarterly, corporation tax is paid annually, with the tax period coinciding with the company’s financial year.
However, you should bear in mind that the tax is paid as follows:
- In the month of September, 50% of the Corporate Tax for the current year must be paid, taking into account the profits reported in the immediately preceding year.
- At the end of the current tax period (usually during the month of July) the second part of the tax must be paid, after deducting the part already paid at the beginning of the year.
When, by virtue of the profits obtained during the current tax period, the amount paid in September makes the amount payable in July negative, the Andorran Ministry of Finance will refund the excess to the taxpayer.
Advice for companies in Andorra
Andorra is a very attractive country in which to incorporate a company. The reduced corporate tax is just one example of its many tax advantages.
Even though there are undoubted advantages, the process of setting up and maintaining a company in Andorra is equally or more complex than in other countries, something that Delvy can help to solve.
Our professionals have been advising companies for years, both in Andorra and in Spain and Mexico, and have extensive experience in all the procedures involved in setting up and maintaining a company. In addition, we are also specialists in obtaining financing for your business.
That is why, if you need help to create or maintain a company in Andorra
, Delvy will be delighted to help you. Contact our team!