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Andorra Corporate Finance

Andorra Corporate Tax (IS) & Profit Calculator

Calculate your corporate income tax liability under Andorra's Impost sobre Societats (IS). Andorra maintains one of the most advantageous, fully OECD-compliant corporate tax regimes in Europe, featuring a standard flat rate of 10.0%, a 5.0% reduced rate on initial profits for new qualifying enterprises, zero tax on dividend distributions to Andorran tax residents, and a 0% participation exemption for holding companies.

Company Financials & Regime

Include rent, wages, supplies, marketing, and depreciation.
Qualifies for 100% participation exemption (0% IS) if holding >= 5% or > €250k.
Can be carried forward for up to 10 consecutive fiscal years.
Statutory tax credit of €1,000 to €3,000 per newly hired Andorran resident employee.

Corporate Tax & Net Profit

Corporate Tax Due (IS) €0.00 Effective rate: 0.0%
Net Profit After Tax €0.00 Available for dividends or reserves
Taxable Base (Base de Tributacio) €0.00 After loss offset & exemptions
EU Tax Savings vs Spain/France €0.00 Saved vs 25% Spanish/French CIT

Corporate Profit & Loss Tax Calculation

Financial Line Item Amount (€) Notes

Andorra Impost sobre Societats (IS) Statutory Guidelines

Enacted under the Corporate Income Tax Act (Llei 95/2010 de l'impost sobre societats), Andorra's corporate tax regime combines fiscal competitiveness with complete compliance with OECD and European Union transparency standards:

Key Features of Andorran Corporate Taxation

  • Standard Tax Rate: 10.0% on net worldwide profits.
  • New Business Startup Incentive: Newly formed companies with annual turnover under €100,000 enjoy a reduced 5% rate on the first €50,000 of taxable profit during their initial 3 fiscal years.
  • 0% Dividend Withholding Tax: Dividends distributed by an Andorran company to Andorran resident individual shareholders are 100% tax-free (no double taxation).
  • Participation Exemption: Holding companies (Societats de Participacio Patrimonial) pay 0% IS on dividends and capital gains derived from qualifying foreign subsidiaries (minimum 5% shareholding or acquisition value > €250,000).
  • No Capital Duty or Wealth Tax: Andorra imposes no net wealth tax and no capital duty on standard corporate share capital increases.

📊 Principality Statutory Wage & Tax Breakdown Matrix

Statutory Component / Legal Deduction Item Calculated Amount (EUR)
Primary Net / Statutory Payable Amount 0,00 €
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Engr. Muhammad Shahzad

Principal Financial Systems Architect & Pyrenean Fiscal & Labor Relations Code Specialist

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