Andorra Corporate Income Tax

Corporate income tax (Impost sobre Societats)

• Standard corporate income tax rate — 10% on taxable profit % (Llei 95/2010 IS)
• Reduced rate for newly created companies — Historically 5% on the first EUR 50,000 of taxable base in the first years of activity % (approx — confirm this incentive is still in force for 2025) (Llei 95/2010 IS)
• Holding-company (ETVPESE) regime — Qualifying foreign-shareholding income (dividends and capital gains) may be exempt, giving an effective rate near 0% (approx — confirm current qualifying conditions) (Llei 95/2010 IS (regim de societats de tinenca de participacions))
• Intangible-exploitation / IP regime — Qualifying income from exploitation of certain intangibles may benefit from a reduced effective rate (around 2%) % (approx — confirm; subject to OECD nexus / substance rules) (Llei 95/2010 IS)
• Tax base — Accounting profit per Andorran GAAP (Pla General de Comptabilitat), adjusted for tax-specific items (Llei 95/2010 IS)
• Corporate residence — A company is resident if incorporated under Andorran law, has its registered office in Andorra, or has its effective management in Andorra (Llei 95/2010 IS)
• Withholding tax on dividends to non-residents — 0% — no withholding tax on dividends paid by Andorran companies to non-residents % (Llei 94/2010 IRNR)
• Withholding tax on interest to non-residents — 0% — no withholding tax on interest paid to non-residents % (Llei 94/2010 IRNR)
• Withholding tax on royalties to non-residents — 5% (may be reduced under an applicable double tax treaty) % (approx — confirm treaty rates) (Llei 94/2010 IRNR)
• IS filing deadline — Within 6 months of the close of the financial year (commonly filed in July for calendar-year companies via Model 200) (approx — confirm exact statutory deadline) (Llei 95/2010 IS)
• Advance / instalment payment — A payment on account (Model 202) of around 50% of the prior year's liability is due during the year, typically in September (approx — confirm rate and date) (Llei 95/2010 IS)