Andorra

First reporting fiscal year: Commencing on or after 1 January 2018

Andorra has nine tax agreements in force, as reported in its response to the Peer Review questionnaire. Eight of those agreements comply with the minimum standard.

Andorre compte neuf conventions fiscales en vigueur, comme l’indique sa réponse au questionnaire d’examen par les pairs. Huit de ces conventions sont conformes au standard minimum.

Andorra can legally issue the following five types of rulings within the scope of the transparency framework: (i) preferential regimes; 1) Holding company regime and 2) Special regime for exploitation of certain intangibles. (ii) cross-border unilateral APAs and any other cross-border unilateral tax rulings (such as an advance tax ruling) covering transfer pricing or the application of transfer pricing principles; (iii) rulings providing for unilateral downward adjustments; (iv) permanent establishment rulings; and (v) related party conduit rulings.

This report analyses the implementation of the AEOI Standard in Andorra with respect to the requirements of the AEOI Terms of Reference. It assesses both the legal frameworks put in place to implement the AEOI Standard and the effectiveness of the implementation of the AEOI Standard in practice.

First reporting fiscal year: Commencing on or after 1 January 2018

Under BEPS Action 14, members of the OECD/G20 Inclusive Framework on BEPS have committed to implement a minimum standard to strengthen the effectiveness and efficiency of the mutual agreement procedure (MAP). The MAP is included in Article 25 of the OECD Model Tax Convention and commits countries to endeavour to resolve disputes related to the interpretation and application of tax treaties. The BEPS Action 14 Minimum Standard has been translated into specific terms of reference and a methodology for the peer review and monitoring process. The peer review process is conducted in two stages. Stage 1 assesses countries against the terms of reference of the minimum standard according to an agreed schedule of review. Stage 2 focuses on monitoring the follow-up of any recommendations resulting from jurisdictions' Stage 1 peer review report. This report reflects the outcome of the Stage 2 peer monitoring of the implementation of the BEPS Action 14 Minimum Standard by Andorra.

Andorre compte huit conventions fiscales en vigueur, comme l’indique sa réponse au questionnaire d’examen par les pairs. L’une de ces conventions, celle avec Chypre*, est conforme au standard minimum.

Andorra has eight tax agreements in force, as reported in its response to the Peer Review questionnaire. One of those agreements, the agreement with Cyprus*, complies with the minimum standard.

Andorra can legally issue the following five types of rulings within the scope of the transparency framework: (i) preferential regimes; These regimes are: 1) Holding company regime and 2) Special regime for exploitation of certain intangibles. (ii) cross-border unilateral APAs and any other cross-border unilateral tax rulings (such as an advance tax ruling) covering transfer pricing or the application of transfer pricing principles; (iii) rulings providing for unilateral downward adjustments; (iv) permanent establishment rulings; and (v) related party conduit rulings.

Andorra’s legal framework implementing the AEOI Standard isin place butneeds improvement in order to be fully consistent with the requirements of the AEOI Terms of Reference. While Andorra’s international legal framework to exchange the information with all of Andorra’s Interested Appropriate Partners (CR2) is consistent with the requirements, its domestic legislative framework requiring Reporting Financial Institutions to conduct the due diligence and reporting procedures (CR1) has deficiencies significant to the proper functioning of an element of the AEOI Standard. More specifically, Andorra’s legal framework includes jurisdiction-specific Excluded Accounts that are not in accordance with the AEOI Standard.

First reporting fiscal year: Commencing on or after 1 January 2018

Andorra has eight tax agreements in force, as reported in its response to the Peer Review questionnaire. One of those agreements, the agreement with Cyprus*, complies with the minimum standard.

Andorre compte huit conventions fiscales en vigueur, comme l’indique sa réponse au questionnaire d’examen par les pairs. L’une de ces conventions, celle avec Chypre*, est conforme au standard minimum.

Andorra can legally issue the following five types of rulings within the scope of the transparency framework: (i) preferential regimes; These regimes are: 1) Holding company regime and 2) Special regime for exploitation of certain intangibles. (ii) cross-border unilateral APAs and any other cross-border unilateral tax rulings (such as an advance tax ruling) covering transfer pricing or the application of transfer pricing principles; (iii) rulings providing for unilateral downward adjustments; (iv) permanent establishment rulings; and (v) related party conduit rulings.

Overall determination on the legal framework: In Place But Needs Improvement

Andorra was reviewed as part of the 2017/2018 and the 2018/2019 peer reviews. This report is supplementary to those previous reports (OECD, 2019[1]) (OECD, 2018[2])

Andorre compte huit conventions fiscales en vigueur, comme l’indique sa réponse au questionnaire d’examen par les pairs. Sa convention avec Chypre est conforme au standard minimum.

Andorra has eight tax agreements in force, as reported in its response to the Peer Review questionnaire. Its agreement with Cyprus complies with the minimum standard.